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.
Collect sound recording royalties produced from the dance/pop album Electric Soul EP from rising producer Sam F.
As the winning bidder, you will earn royalties any time the songs are streamed, digitally downloaded or synced. It will come as no surprise that the majority of this catalog’s earnings came from streaming, a staggering 89% of last year’s income in fact.
The foundation of this collection is the 2017 release “Limitless” featuring pop vocalist Sophie Rose. The track brought in 73% of last year's royalties and has nearly 6.5 million spins on Spotify. “Limitless” also broke into the Top 10 of Billboard’s Dance Airplay weekly charts, peaking at No. 9.
The single earns the majority of its royalties from core dance outlets like Music Choice's Dance/EDM channel, SiriusXM, and other various streaming platforms. “Limitless” also received a sync in Samsung’s Galaxy S8 commercial campaign in 2017. You’ll notice the spike in earnings in H2-2017 as a result of the placement.
Other top-earning songs from the EP include: “All We Got” featuring Lizzy Land, “Electric Soul,” featuring Denny White and “Zone.” Combined the three tracks account for 26% of the catalog’s income last year and collectively garnered close to 4 million plays on Spotify.
Sound Recordings & Streaming: 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, while the remaining 10-cents goes to the composition copyright.
In the last year, 89% of royalties came from streaming services. Sam F has over 100,000 monthly listeners on Spotify as well. This is good news for you as the investor, as this catalog earns from the sound recording copyright.
Sync Potential. In the two years since the album —Electric Soul EP— was released, two of the songs have been placed in TV programming. The first was substantial sync for "Limitless" used in a 2017 Samsun commercial. The second "All We Got" was featured in the MTV series Siesta Key. This clearly demonstrates the songs’ sync potential. As the winning bidder, you’ll be entitled to any upfront sync/licensing fees paid for the track’s use going forward.
Dim Mak Records is an independent, Los Angeles-based record label, events company, and lifestyle brand founded by Steve Aoki in 1996. The label has released music in punk, indie rock, hardcore, hip hop, and electronic dance music. Dim Mak distributes royalties for its artists on a biannual basis.
Public performance royalties are payments made by radio stations, hotels, restaurants, night clubs, etc. to the composition copyright holder(s) for each public performance of the copyrighted work. In the U.S., public performance royalties are typically paid to performing rights organizations (e.g., ASCAP, BMI) who then distribute the royalties to the copyright holder(s).
Mechanical royalties are royalties deriving from per-unit payments made by recording companies or digital download providers to the composition copyright holder(s) for every purchase of a sound recording that reproduces the copyrighted composition.
Non-interactive digital performance royalties are payments made by non-interactive music services (i.e. those that mimic the experience of a radio broadcast) of a statutorily-set amount (on either a per-play or annual basis—depending on the type of service) to SoundExchange for the benefit of the sound recording copyright holder and the performing artists for the right to perform the copyrighted sound recording via non-interactive, digital means.
non-interactive digital performance royalties
The royalties owed to the creator(s) of a musical composition which are paid in return for the right to reproduce, distribute, or perform the copyrighted work.
A musical composition is one of the two copyrightable parts of a recorded song. It consists of the song's music, including any accompanying words, (i.e. the portion of a song that is capable of being fully expressed as sheet music) and is separate from any particular recording of the song or its performance by any particular artist.
A sound recording is one of the two copyrightable portions of a recorded song. It results from the fixation of a series of musical, spoken, or other sounds in a tangible (at least momentarily permanent) medium.
The portion of royalties owed to the owner of a sound recording. The owner may the performing artist, the producer, or another party (such as a record label) who contractually acquired the ownership of the copyrighted work (e.g., through a recording agreement), owns it by virtue of an employer-employee relationship with the creator(s) of the work, or specially commissioned the work.
rights owner's share
The portion of royalties owed to the performers of a sound recording in return for the right to perform the copyrighted work via non-interactive, digital services (e.g., Pandora, Spotify).
The portion of royalties owed to the music publisher which are paid in return for the right to reproduce, distribute, or perform a copyrighted musical composition, arising from a contractual obligation (i.e. a publishing agreement) or employer-employee relationship with the creator of composition (i.e. the songwriter(s)).
If an asset requires splitting up a catalog by works or percentages, Royalty Exchange may need to provide royalty accounting services to the buyer, seller, or both. This is because the royalty distributor may not be able to split royalties as intended by the asset transfer. Royalty Exchange's involvement helps to ensure accurate royalty payments. It also helps assure buyers and sellers that they are not missing out on potential earnings.
The accounting process often involves manual spreadsheet work and coordinating with royalty distributors. Royalty Exchange's goal is for the accounting service to be temporary. We plan to work with distributors to find solutions that will allow us to revert accounting and payment obligations back to the distributor, removing ourselves from the process. In the meantime, we've instituted the 5% fee to help offset costs in the manual accounting.
Please see the sample accounting agreement document for reference.
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