2x Platinum Hit From A$AP Ferg
Here’s a chance to collect growing sound recording royalties generated by the 2x Platinum hit “Work REMIX” from hip-hop star A$AP Ferg.
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The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.
Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.
| Starting Price: | $79,000 |
| Bidding Increment: | $1,500 |
| Closing Price: | $107,500 |
| End Date: | Feb 25, 2019, 1:01 PM MST |
| Last 12 Months' Royalties: | $15,860 |
| Investment Term: | Life of author + 70 years |
| Distributors: | Sony Music Entertainment |
| Rights Included: | Sales, Streaming, Sync |
| Interests Included: | Producer (World) |
| Track List: | |
| First Distribution: | March 31, 2019 |
| Distribution Frequency: | Bi-annually |
| Buyer Fees: | $500‡ |
‡ Become a Royalty Exchange All Access Investor to waive auction fees and enjoy additional exclusive benefits.
Description
This offering features rising sound recording royalties from A$AP Ferg’s 2013 debut single “Work” from the album Trap Lord. As the winning bidder, you’ll earn income from sales, streaming and upfront sync fees of the record.
Not surprisingly, streaming is the leading income source, with 84% of earnings in the last 12 months. What’s exciting is streaming earnings are on the rise — up a healthy 12% over the previous year’s income. Spotify (both subscription and ad-supported) leads the way with 44% of the catalog’s total royalties last year. Apple Music is also showing growth, with earnings increasing every payment period in the last three years.
Interestingly, the song’s remix —appropriately titled “Work REMIX” — is the more lucrative song, contributing 94% of income last year. “Work REMIX” is certified double Platinum and features fellow rappers A$AP Rocky, Schoolboy Q, French Montana, and Trinidad James. To date, “Work REMIX” has amassed over 197 million spins on Spotify, making it A$AP Ferg’s second most popular song on the platform.
Key Drivers
Multiple Income Streams. The winner of this auction can receive income from various royalty streams. Like composition/publishing royalties, sound recording royalties are due royalties for different types of uses. They include:
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Sales: Royalties paid to artists and producers when a recording is sold, which can be downloaded (on a platform like iTunes), as well as physical copies being sold (such as a C.D.).
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Streaming: Royalties paid to artists and producers when a recording is streamed “on-demand” (like Spotify for example) as well as non-interactive streaming (Pandora).
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Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.
Sound Recording & Streaming. As we’ve come to know, streaming is booming worldwide, and record labels are seeing significant benefits as a result. You can see this trend reflected in the catalog up for auction. In the last year, 44% of royalties came from streaming services alone, and those earnings are growing by 12%. This is good news for you as the investor, as it follows the industry macro trend of rising label streaming royalties.
According to an analysis of publicly-stated financial results by Music Business Worldwide, labels Universal, Sony and Warner jointly turned over just above $6 billion — approximately $1 billion a month — between them in the first half of 2018 on a global basis. Streaming contributed over half this total, with over $3 billion in the same period.
Hip-Hop and Streaming. According to BuzzAngle's 2018 Year End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Hip-hop/rap tracks accounted for more than a quarter of all on-demand plays on music streaming services in the US in 2018. This hip-hop catalog follows this trend with 77% of historic income from streaming platforms. You can benefit from this rise in hip-hop as a genre on streaming platforms with this hip-hop offering.