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.
|End Date:||Jun 11, 2021, 1:00 PM MDT|
|Dollar Age:||3.54 Years|
|Last 12 Months' Royalties:||$13,120|
Fixed Return Amount (See Note Below)
Mechanical, Public Performance, Sync
|First Distribution (paid 30 days from receipt):||June 30, 2021|
1% of closing price or $500 (whichever is greater)‡§
‡ 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.
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What rights are included?
|Musical Composition||Sound Recording|
|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.|
This is a fixed-return asset, meaning the winning bidder will receive quarterly payments until a total amount of $31,000 is collected (“Total Return”).
Also noteworthy is that the winning bidder will be entitled to all royalties for both the existing catalog of songs— including the single “2020” Jake Paul released in December 2020 — AND any newly released songs during the payback period.
The top source for this catalog is mechanical royalties with 58% of last year’s returns.
You’ll notice a spike in royalties in Q4-2020. This is a result of delayed payments from past performances dating from 2015 to 2018 totaling over $5,000. Although this is not expected to occur again, the winning investor will be entitled to all royalties regardless of when earned.
The top-producing songs — “I Love You, Bro” and “Jerika” — are fairly evenly split with 28% and 27% of last year’s earnings respectively.
ABOUT THE CATALOG:
This catalog features songs from top YouTube personalities and brothers Jake Paul and Logan Paul.
The Paul brothers are incredibly popular social media influencers with a staggering 43+ million combined subscribers for their official YouTube channels: Jake Paul and Logan Paul. Over the last few years, the pair has ventured into the world of high-profile professional boxing matches, with the most recent occurring last weekend.
The top song “I Love You, Bro” was released in 2017. The video has amassed over 174 million views thanks to the duo’s dedicated fan base.
Right behind is “Jerika” — a 2017 collaboration between Jake Paul, Erika Costell, and Uncle Kade. The track was also very popular on YouTube with nearly 60 million views.
Other top releases include “Powerful Emotions” from Tessa Brooks featuring Erika Costell and “There For You” performed by Erika Costell.
The winning investor will collect the first royalties from Jake Paul’s single “2020.” The song was released in December 2020 and royalties will be paid in the upcoming Q1-2021 distribution, due at the end of June 2021. Any other works written and released during the repayment period will also be included with all royalties paid to the winning bidder.
HOW THIS INVESTMENT WORKS
This asset offers the right to collect royalties up to a Total Return of $31,000. 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.
The below scenarios include forecasted royalties for a single “2020” from Jake Paul that has not yet collected royalties. The scenarios factor approximately $6,800/year of royalties for “2020” for the first two years of the forecast.
- Baseline: Payments decrease by 1% per quarter through Year 1 of the forecast, decrease by 7.6% per quarter through Year 2, decrease by 3.4% per quarter through Year 3, and decrease by 1.5% per quarter through Year 4. The Total Return would take 13 quarters to collect.
- Optimistic: Payments increase by 4.2% per quarter through Year 1 of the forecast, decrease by 4.8% per quarter through Year 2, and decrease by 1.5% per quarter through Year 3. The Total Return would take 9 quarters to collect.
- Conservative: Payments decrease by 5.1% per quarter through Year 1 of the forecast, decrease by 3.7% per quarter through Year 2, decrease by 3.4% per quarter through Year 3, and decrease by 1.5% per quarter through Year 4. The Total Return would take 14 quarters to collect.
Income Mix. The winner of this auction can receive income in various ways:
- Mechanical: Royalties paid to songwriters and publishers when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).
- Performance: Royalties paid to songwriters 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 songwriters and publishers for the licensing of a song in music for a movie, TV show, or commercial.
Streaming Growth Worldwide. According to IFPI’S Global Music Report 2021, subscription streaming revenues for recorded music increased 18.5% over the previous year. That’s the sixth consecutive year of growth, totaling 443 million paid subscription accounts worldwide. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues.
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.
HOW DO PAYMENTS WORK?
Royalty Exchange will collect and distribute the royalties to the investor on a quarterly basis. The first payment will be on June 30th, 2021. Payments will continue until the investor collects $31,000 (“Total Return”). After the Total Return has been received, the rights to the royalties will revert back to the seller.
About the Royalty Distributor
Songtrust is a global digital rights management platform allowing music creators to independently manage their composition royalty rights. Based in New York, it is a division of Downtown. Songtrust streamlines the music publishing administration of 2,000,000+ songs.