[ADVANCE] Fixed-Return Hip-Hop From Money Mu
Collect $571,000 in sound recording and streaming video royalties from a popular new release by an up-and-coming hip-hop artist.
.png)
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: | $400,000 |
| Bidding Increment: | $1,000 |
| Closing Price: | $444,000 |
| End Date: | Feb 19, 2021, 3:03 PM MST |
| Dollar Age: | 0.52 Years |
| Last 6 Months' Earnings: | $187,734 |
| Investment Term: | Fixed Return Amount (See Note Below) |
| Distributors: | Vydia |
| Rights Included: | Sales & Streaming |
| Interests Included: | Rightsholder (World) |
| Track List: | |
| First Distribution (paid 30 days from receipt): | February 28, 2021 |
| Distribution Frequency: | Monthly |
| Buyer Fees: | 1% of closing price or $500 (whichever is greater)ठ|
‡ Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.
§ Become a Royalty Exchange All Access Investor to waive auction fees and enjoy additional exclusive benefits.
What rights are included?
| Musical Composition | Sound Recording | |||||||
|---|---|---|---|---|---|---|---|---|
| Copyrights included? | — | No | ||||||
| Rights: |
|
|
||||||
| Sources: | Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. | Internet Streaming, Digital Downloads, etc. | ||||||
| Distributors: | — | Vydia |
Description
Up for bid are monthly sound recording and streaming video earnings from two songs performed by rising rapper Money Mu, including his burgeoning single “Hittin’ (Remix).”
This is a fixed-return asset, meaning the winning bidder will receive monthly payments until a total amount of $571,000 (“Total Return”).
HOW THIS INVESTMENT WORKS
This asset offers the right to collect royalties up to the Total Return of $571,000. With this advance-style investment, the amount of return is known upfront. The only variable is the time it takes to collect that total.
Fixed-return investments are designed for younger catalogs such as this. Knowing the total return in advance helps reduce the overall risk profile. To that effect, below are three return scenarios we created to approximate the time it may take to collect the Total Return. These scenarios were designed based on an analysis of the earnings history to date.
Return Scenario Details:
- The winning bidder will be entitled to the February royalty payment totaling $54,034. This means a portion of the initial investment will be recouped in the first month of ownership, with the unique ability to review the earnings data for that total in advance.
- The projected March payment amount anticipates a reduction in YouTube revenue, which typically falls after a seasonal spike in holiday/end-of-year advertising.
- After accounting for reduced YouTube revenue in March, each theoretical return scenario uses various decay rates to calculate projected payments for the following months. These include:
- Baseline: Monthly payments decrease by 7% per month for seven months (after the first two months), then drop 6% per month for the next seven months, with a final 5% month-over-month decrease after that. The Total Return will take 27 months to collect.
- Optimistic: Monthly payments decrease by 1% per month for four months (after the first two months), then drop 5% per month for the next seven months, with a final 3% month-over-month decrease after that. The Total Return will take 17 months to collect.
- Conservative: Future monthly payments decrease by 10% per month for seven months (after the first two months), then drop 6% per month for the next seven months, with a final 5% month-over-month decrease after that. The Total Return will take 44 months to collect.
- Baseline: Monthly payments decrease by 7% per month for seven months (after the first two months), then drop 6% per month for the next seven months, with a final 5% month-over-month decrease after that. The Total Return will take 27 months to collect.
FINANCIAL HIGHLIGHTS:
The vast majority of this catalog’s earnings are derived from YouTube, accounting for 82% of the catalog’s income to date. You’ll note that in addition to sound recording royalties, this asset also provides YouTube ad revenue royalties from the musical composition.
ABOUT THE CATALOG:
This catalog features two songs (and associated edits and remixes) from Atlanta hip-hop artist Money Mu.
The highest-earning track with 98% of royalties is “Hittin’ (Remix)” — a 2020 collaboration featuring Foogiano and Moneybagg Yo. The video for the remix has amassed nearly 33 million views since its release in August 2020. The track has already generated nearly 1.7 million plays on Spotify. “Hittin’ (Remix)'' has developed a viral following online and even recently gained mainstream appeal with the Tampa Bay Buccaneers celebrating their Super Bowl win in the locker room to the song.
The other track is Money Mu’s “Eat” featuring his label mate Lil Durk.
Key Drivers
Sound Recordings: Sound recording royalties benefit from streaming disproportionately more than composition-based royalties. If Spotify pays 70-cents of every dollar on music rights, 60-cents of that goes to the sound recording copyright (which the label splits with the artist based on their contract agreement), while the remaining 10-cents goes to the composition copyright.
YouTube: While not solely a music service, YouTube is the most-popular source of music streaming in the world, with more than 2 billion listeners playing music on the service every month.
WHAT IS BEING SOLD?
The seller’s interest in all sound recording, video, and musical composition royalties distributed by Vydia for the sound recordings listed in the Track List noted above. This includes sound recording royalties, as well as earnings generated by YouTube video streaming and ad revenue.
HOW DO PAYMENTS WORK?
Royalty Exchange will collect and distribute the royalties to the investor on a monthly basis. The first payment will be on February 28, 2021. Payments will continue until the investor collects $571,000 (“Total Return”). After the Total Return has been received, the rights to the royalties will revert back to the seller.
About the Royalty Distributor
Vydia, Inc. provides an end-to-end solution to empower the next generation of music creators, managers, and labels. Their cutting-edge technology provides the digital infrastructure for audio and video distribution, content protection, rights management, advanced payments, and data tracking from one easy-to-use platform. Vydia distributes royalty payments to rightsholders on a monthly basis.