Consistent Early 2000s Hip-Hop Royalties

This well-established catalog features growing royalties from hip-hop hits performed by Lil’ Mo, Fabolous, and Angie Martinez, and more.

$37,250

closing price

Auction Closed

Top Bid: Jeremy W

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: $23,000
Bidding Increment: $750
Closing Price: $37,250
End Date: Feb 20, 2019, 1:05 PM MST
Last 12 Months' Royalties: $7,826
Investment Term: 10 years*
Distributors: ASCAP
Rights Included:

Public Performance 

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution: April 8, 2019
Distribution Frequency: Quarterly
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,TV/Film/Commercial Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors: ASCAP

Description

Up for bid are consistent public performance royalties generated by a catalog boasting hot hip-hop acts from the early 2000s.

What’s impressive about this collection is its longevity and consistency. The top-five earning tracks have release dates ranging from 2000 to 2003. According to the Lindy Effect, the longer a song has been producing royalties, the more likely it is to continue earning into the future. And this catalog is a perfect example of that — not only have the works been generating royalties for over 18 years, but the earnings are actually seeing recent growth thanks to streaming.

The leading source of income for this collection is streaming, at 39% of the last 12 months earnings. It’s also the highest-growing source of income, with a 27% increase in the last 12 months over the previous timeframe.

Acting as the foundation of this catalog with 39% of last year’s income is the title “Can’t Let You Go” from Fabolous featuring Lil’ Mo. The 2003 release charted impressively placing in the top 5 of three separate Billboard charts. “Can’t Let You Go” is seeing earnings growth as well, up 21% over last year.

Other notable 2000’s titles include “If I Could Go” from Angie Martinez featuring Lil' Mo and Sacario and “ Straight Up” from Chante Moore. Finally, not to be overlooked are two additional collaborations between Lil’ Mo and Fabolous: “Superwoman” and “4Ever.”

Key Drivers

Song Age. Based on the recent BuzzAngle Music report, “Deep Catalog” (music released more than 3 years ago) represents 50% of music streamed today.

This collection of songs aligns with this industry trend. The highest-earning track — “Can’t Let You Go” — was released in 2003. What’s more impressive, is this song is seeing recent growth thanks to streaming. A catalog containing mature works with consistent (and even growing earnings) is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

Hip-Hop and Streaming. According to BuzzAngle's 2018 Year End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Hip-hop/rap tracks accounted for more than a quarter of all on-demand plays on music streaming services in the US in 2018. This hip-hop catalog follows this macro-trend with 39% of last year’s income from streaming platforms and those earnings are seeing significant growth. You can benefit from this rise in hip-hop as a genre on streaming platforms with this hip-hop offering.

About the Royalty Distributor

American Society of Composers, Authors and Publishers (ASCAP) is one of four United States performing rights organizations, along with BMI, SESAC & Global Music Rights. It collects license fees from music users on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. For more information on ASCAP’s distribution schedule, click here.

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