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 02, 2021, 3:00 PM MDT|
~ 1.15 Years
|Last 12 Months' Royalties:||
Fixed Return (See Note Below)
|First Distribution (paid 30 days from receipt):||June 15, 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.
§ Become a Royalty Exchange All Access Investor to waive auction fees and enjoy additional exclusive benefits.
**Please note a preview of this auction launched on 5/18/2021. The details of this listing were updated on 5/25/2021 and bidding is now open. Please review all information below before placing a bid.**
Up for bid is monthly YouTube income from the official YouTube channel of influencer CJ So Cool. As the winning bidder, you will collect payments until you receive the fixed amount of $1,113,500 ("Total Return") for an overall return of 33.5% at the starting price of $850,000.
CJ So Cool is a YouTube creator specializing in prank and reaction videos. His channel has over 8.7 million subscribers as of May 2021, with unique monthly viewers of over 18 million, culminating in over 2.2 billion views. He is ramping up the production of new content with May 2021 projected to be his biggest month yet. The channel has seen an increase of over 50 million new views in the last 30 days. That is up 180%! The winning bidder will be paid royalties for that increase in July 2021.
The winning investor will be buying into CJ So Cool’s brand and earnings of videos including all future videos published during the investment timeframe.
HOW THIS INVESTMENT WORKS
This asset offers the right to collect monthly payments— up to a monthly cap of $55,000 — until the investor receives a Total Return of $1,113,500. With this advance-style investment, the amount of return is known upfront. The only variable is the time it takes to collect.
The purpose of the $55,000 monthly cap is to provide both the upside and incentive for the seller to create new videos that result in exceeding the optimistic return scenario. If the cap is reached in each month of the advance term, the Total Return will be achieved in 21 months with an annualized return of 18% at the starting price of $850,000.
Fixed-return investments are designed for assets 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.
RETURN SCENARIO DETAILS:
To approximate the payback period, we will look at the historical earnings for all videos in the CJ So Cool channel to determine three possible scenarios. Please note, the cash flow inputs and growth rates below are based on trends from the historical earnings of videos.
In the Optimistic and Baseline scenarios, we assume that CJ So Cool will release future videos at a similar rate and that those future videos will perform similarly to the existing videos. In the Conservative scenario, we assume that CJ So Cool will release only 3 or fewer new videos per month (The average number of new videos released is 12 per month over the last 3 years).
- Optimistic: Assuming Year 1 cash flows of $564,000; cash flows increase by 0.7% per month through Year 2. The Total Return would take 24 months to collect and annualized return would be 15.6% at the starting price of $850,000.
- Baseline: Assuming Year 1 cash flows of $519,000; cash flows decrease by 0.9% per month through Year 2, then decline by 3% per month in Year 3. The Total Return would take 30 months to collect and annualized return would be 12.3% at the starting price of $850,000.
- Conservative: Assuming Year 1 cash flows of $281,000; cash flows decrease by 2.4% per month through Year 2, then decline by 1.1% per month in Year 3, then decline by 0.9% per month in Year 4, then decline by 0.9% per month in Year 5, then decline by 0.7% per month in Year 6, then decline by 0.7% per month in Year 7. The Total Return would take 73 months to collect and annualized return would be 4.9% at the starting price of $850,000.
The primary source of income for this asset comes from ads placed against the YouTube videos through Google AdSense. On average, YouTube content creators generally receive $2 – $12 for every 1,000 monetized views after YouTube’s fees. The monetized views typically account for 40% – 80% of the total views for a video. The figure varies based on factors like the device, time of the year, location, ad inventory, number of ads, viewership, ad format, engagement, etc.
As we look at the historical average monthly payments over the last 12 months we can see that videos posted during the two months prior to payment account for 40% of the income for that month. This means that newly published videos are generating about 60% of the respective revenue for the month.
It’s also important to note a video’s earnings potential decreases significantly within the first quarter after publication. For example, based on all videos posted in the last year, the average video earned $2,483 in the month it was published, then $380 in the second month, then, $128 in Month 3. This demonstrates the majority of the revenue a video makes occurs in the first month.
ABOUT THE CATALOG:
The CJ So Cool YouTube channel stars Cordero James Brady (CJ So Cool) with videos about his family, pranks, special events, vlogs, giveaways, viral challenges, and much more. To date, the channel has over 8.8 million subscribers and a staggering combined total of over 2.2 billion views. The channel has been live since December 2014.
The CJ So Cool channel is managed exclusively by BroadbandTV Corporation. BBTV monetizes the media of content owners through end-to-end management, distribution and monetization solutions, while allowing content owners to focus on their core competency – content creation. BBTV is in charge of monetizing the content and is responsible for collecting and distributing the proceeds on a monthly basis. The winner of this auction will benefit from BBTV’s efforts and expertise during the investment term.
YouTube: YouTube is the most-popular video platform in the world, with more than 2.3 billion users worldwide watching over a billion hours of video a day.
WHAT IS BEING SOLD
35% of the seller's interest in all net proceeds – up to a monthly cap of $55,000 – attributable to the video content in the CJ So Cool YouTube channel, currently collected and distributed by BroadbandTV Corporation, until the investor has collected a total of U.S. $1,113,500. All financial data presented in this listing reflects 35% of net proceeds from BBTV.
About the Royalty Distributor
Founded in 2005, BroadbandTV is a media-tech company aimed at helping worldwide influencers succeed with their online content. BroadbandTV engages a global audience, providing end-to-end solutions to influencers including proprietary tech, leading services, and enhanced distribution & monetization.