3 Royalty Streams: Dem Franchize Boyz

Collect mechanical, sync, and public performance royalties from music by Atlanta rap group Dem Franchize Boyz.

$32,500

closing price

Auction Closed

Top Bid: Michael A

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: $12,000
Bidding Increment: $500
Closing Price: $32,500
End Date: May 08, 2017, 3:00 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $4,163
Royalty Type: Public Performance, Mechanical, Sync
First Payment: September 2017
Fees: None

Description

Earn royalties generated by the publishing share of a catalog of music by rap group Dem Franchize Boyz. You will earn money from three different sources from hits like “Lean Wit It, Rock Wit It” and “White T.” In the last 12 months, these songs produced $4,163 in royalties.

In this auction, you are bidding on the publisher's share of public performance, sync, and mechanical royalties. This means not only will you collect money any time one of these songs is performed publicly, but you will also earn royalties if any of the songs in this catalog are downloaded, sold, re-rerecorded, covered, or used in TV and film.

For example, the band Twenty One Pilots used lyrical elements from the chorus of Dem Franchize Boyz song “Lean Wit It, Rock Wit it” in their song “Holding On To You.” So this catalog earns money not only when the original song “Lean Wit It, Rock Wit It” is played, but also when Twenty One Pilots “Holding On To You” is played.

These two songs are the catalog's biggest earners and royalties from both songs increased in 2016 over 2015. “Holding On To You” and “Lean Wit It, Rock Wit It” makes up 45% and 36% of the catalog's income respectively. “Holding On To You” saw an impressive 85% increase in royalties in 2016 over 2015, and “Lean Wit It, Rock Wit It” increased 7%.

Key Drivers

1) This auction is for three different royalty streams. This means the winner of this auction can receive income in multiple ways:

  • Mechanical: Royalties paid to publishers when music is sold (like digital downloads), and also when music is streamed on-demand, like on Spotify (streaming mechanicals).
  • Performance: Royalties paid when music is performed publicly. Music played over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.
  • Synchronization: Royalties paid to publishers for use of music in a movie, TV show, or commercial.

2) Mechanical and public performance royalties together make up 81% of the overall income for the catalog. This is important because, in today's world of music consumption, streaming revenues are growing. When a song is streamed on-demand, it counts as both a public performance and a “mini-purchase.” So the song earns a public performance royalty and a streaming mechanical royalty at the same time. This means the winner of this auction will collect two payments for one use!

Want to learn more about the different royalty types? View our guides on mechanical and performance royalties here and sync royalties here

What is being sold?

100% of the seller's interest in the publisher's share of mechanical, synchronization, performance, and other related royalties attributable to the musical compositions in the seller's Sony/ATV catalog.

How does this asset make money?

Every time "Lean Wit it Rock Wit It," or any song from this catalog, is played on the radio or streamed online, you earn royalties. If any of them are covered by another artist, you earn royalties. Every time one of these songs is downloaded, sold, or re-recorded, you earn royalties. Finally, any time the song earns an up-front sync fee for use in a commercial, TV show or movie, you'll earn royalties. Sony/ATV will distribute royalty payments to the winner of this auction on a biannual basis.

What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive Streaming
Sync
Sources: Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors: Sony/ATV

About the Royalty Distributor

Sony/ATV Music Publishing is the world’s number 1 music publishing company with a network of 37 offices in 29 cities and 22 countries across the globe. Headquartered in New York, the company was set up in 1995 as a joint venture between Sony Corporation and Michael Jackson and now owns or administers more than 3 million copyrights. It became a solely-owned Sony company in 2016. Since 2012 Sony/ATV has administered EMI Music Publishing, further extending the reach of the songs, songwriters, and artists it represents.

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