Childish Gambino, Vince Staples, & More - Publishing Royalties

Bid now on publishing royalties from hip-hop hits with a diverse mix of income sources.

$107,000

closing price

Auction Closed

Top Bid: Isaac B

The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.

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: $107,000
Bidding Increment: $4,300
Closing Price: $107,000
End Date: Aug 23, 2019, 3:00 PM MDT
Dollar Age:

~3 Years

Last 12 Months' Royalties: $43,219
Investment Term: 10 years*
Distributors: Warner/Chappell Music
Rights Included:

Public Performance, Sync, Mechanical 

Interests Included:

Songwriter/Co-Publisher (World)

Track List:

Track List

First Distribution: August 30, 2019
Distribution Frequency:

Bi-Annually

Buyer Fees:

$500

* Please see the FAQ tab for more information on the 10-year investment term.

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What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive Streaming
Sync
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.
Distributors: Warner/Chappell Music

Description

This catalog features a blend of new and older works with a strong foundation of mechanical and performance royalties driven by popularity on streaming platforms. In addition, this listing features a roster of hip-hop heavyweights, including J. Cole, Childish Gambino, Vince Staples, the late Mac Miller, and Wale among many others.

Released in 2017 Vince Staples’ “Big Fish,” contributes to over a third of earnings in the last 12 months. This newer track has collected for less than two years yet contributes to over a third of all synchronization payments ever earned. The track was placed in Pitch Perfect 3 and Comedy Central’s Hood Adjacent with James Davis. “Big Fish” contributes to an impressive 15% increase in sync payments in the last 12 months. Another Vince Staples track “Nothing Burns Like Cold” contributes to 12% of recent earnings.

One important feature of the royalties in this catalog is that earnings are evenly spread across five works. The single highest-earning song only accounts for 18% of historic income. This means the catalog’s earnings are not tied to the success of a single track. Other contributors to this diversity include Childish Gambinos’ two hits “Crawl” and “Palisades,” J. Cole’s “Sparks Will Fly” as well as Earl Sweatshirts’ “Chum” and Mac Miller’s “Time Flies.”

It's worth noting this collection includes Lizzo's "Deep" from her 2016 album Coconut Oil. Lizzo recently released her first Top 10 Billboard hit, "Truth Hurts." While the new song is not included in this auction, new releases can often help boost an artist's back catalog. As Lizzo continues to gain relevance this can draw discovery among first-time listeners and re-engage existing fans. In addition, this collection also features the brand new track "You Can Cry" from internationally renowned EDM DJ Marshmello. The track boasts over 71 million streams between YouTube and Spotify.

Key Drivers

Income Mix. The winner of this auction can receive income from various royalty streams:

  • Mechanical: Royalties paid to songwriters and artists when music is sold (downloaded) but also when music is streamed (streaming mechanicals) “on-demand” like Spotify for example. Click here to learn more about mechanical royalties.

  • 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.

The foundation of this collection is formed one strong mechanical earnings, contributing to over 58% of this collection’s historic income. As the works in this catalog have continued to age, they have driven consistent mechanical earnings, with little variation year over year. That being said, following the release of this collection’s top-earning work “Big Fish,” synchronization earnings have increased, now contributing to 34% of recent earnings, up 15% over the prior year.

Mechanical Rates. The US Copyright Royalty Board recently raised the rates digital music services must pay for mechanical royalties by nearly 44% over the next 5 years. Historically, this catalog has earned 58% of its royalties from mechanical royalties. As the winner of this auction, you will benefit from the mechanical rate increases as you collect mechanical royalties.

First Payment: This catalog’s first payment will be paid on August 30, just days after the auction ends, for royalties earned for the six-month period starting January 1, 2019.

Matching Right

This seller's publisher holds a matching right on any sale of the income generated by this catalog. The publisher will have the opportunity to match the winning bid after this auction closes. If you are the winning bidder, the publisher must first decline their matching right before you will be able to complete your purchase. For more information on how the matching right works, please email: info@royaltyexchange.com. 

About the Royalty Distributor

Warner/Chappell Music, the global music publishing company of Warner Music Group, is home to a wide array of legendary songwriters and a rich catalog of contemporary hits and influential standards. With offices in more than 40 countries, Warner/Chappell provides deep expertise across a range of creative services and the most innovative opportunities for songwriters and copyright holders.

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