Catalog Featuring 50 Cent, J. Cole, Ludacris + More

Collect from three royalty streams produced by a catalog with some of the hottest names in hip-hop: 50 Cent, J. Cole, Ludacris and Kid Ink.

$32,000

closing price

Auction Closed

Top Bid: Stephen T

Overview

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: $9,500
Bidding Increment: $500
Closing Price: $32,000
End Date: Feb 14, 2018, 3:00 PM MST
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $5,136
Royalty Type: Public Performance, Mechanical, Sync
First Payment: April 2018
Buyer Fees: None

Description

Here’s a chance to invest in a hip-hop catalog of hip-hop highlighted by 50 Cent, J. Cole, Ludacris and Kid Ink. This asset earns from multiple income streams and in the last 12 months produced $5,136 in royalties.

As the winning bidder, you will collect the songwriter's share of public performance royalties as well as the publishing share of sync, mechanical and public performance royalties for the songs in this catalog. As an investor, this maximizes your exposure to this collection of works and the various royalty streams it earns from.

The 50 Cent title “Twisted” anchors this catalog with 50% of income from both songwriter and publisher royalties. 50 Cent is one of the best-selling rappers of all time with over 30 million records sold and a Grammy to his name. Released in 2014, “Twisted” is off Animal Ambition, 50 Cent’s fifth studio album which reached No. 4 on Billboard’s Hot 200 album chart.

What’s interesting is that is in the last year, “Twisted” earned the majority (76%) of its songwriter income from TV. "Twisted" is used in the 2015 Melissa McCarthy comedy Spy.  Every time Spy plays on any network on TV, you’ll collect the public performance royalties for “Twisted” as the winning bidder. The film aired on HBO networks last year, attributing to the increased TV income.

Another notable song in the catalog is “Dollar and a Dream 3” from J. Cole. It brings in 40% of income from the songwriter and publishing streams combined. The song comes from J. Cole’s Platinum-certified album Cole World: The Sideline Story.

Finally, this asset includes “Act Like That 3 Some” from Kid Ink, which is seeing growth in both its songwriter and publishing royalties at 39% and 308%, respectively. Also part of the catalog is “Ocean Skies” from Ludacris featuring Monica from Ludacris’ ninth studio album Ludaversal.


Key Drivers

Income Streams. This catalog has the benefit of earning from multiple income streams for the same works:

  • Mechanical: Royalties paid to songwriters and artists when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).

  • Performance: Royalties 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 use of a song as background music for a movie, TV show, or commercial.

Streaming mechanicals is something to note here. In the last 12 months, streaming mechanicals generated 42% of income on the publisher side. These royalties had a significant increase over the streaming mechanicals the previous year.  

This is important in today's world of streaming music consumption because when a song is streamed on-demand, it counts as both a public performance and a “mini-purchase.” Take for example 50 Cent’s “Twisted.” In this catalog, the song earns a public performance royalty from whenever the song streamed on Spotify but it also earns a streaming mechanical royalty (mini-purchase) at the same time on the publishing side. This means the winner of this auction will collect two payments for one use of the song!

On-demand stream activity is up 58.7% industry-wide, according to Nielsen's 2017 year-end report. What’s more is streaming accounts for 41% of total listening activity, making it the preferred listening format for music consumers.

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 songwriter's share of public performance royalties and 100% of the seller's interest in the publishing share of all royalties attributable to the seller's catalog of musical works. See the “Documents” tab for a full track list.

How does this asset make money?

Every time “Twisted” or any song from this catalog, is streamed online, plays on TV or on the radio, 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.

Royalty Exchange will administer quarterly payments from BMI and the first distribution you will receive is March 2018 to be paid in April 2018. Royalty Network makes payments semi-annually and the first distribution you will receive is October 2018.

What rights are included?

  Musical Composition Sound Recording
Copyright included: No
Rights:
Mechanical
Performance
Synch
Sales
Performance
Synch
Royalty 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.
Distributed by: BMI, The Royalty Network

About the Royalty Distributors

BMI

BMI represents more than 10.5 million musical works created and owned by more than 700,000 songwriters, composers, and music publishers. BMI supports businesses and organizations that play music publicly by offering blanket music licenses that permit them to play more than 10.5 million musical works.

 

Royalty Network

The Royalty Network is a full-service Music Publisher and Administrator, dedicated to protecting, collecting, and adding value to our client's catalogs. We achieve this through education, communication, and transparency in our accounting.

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