Consistent Hip-Hop Earnings From J. Cole

This single-song auction features royalties generated by the 2015 Platinum-certified release “Wet Dreamz” from hip-hop star J. Cole.

$162,000

closing price

Auction Closed

Top Bid: Andrew C

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: $106,000
Bidding Increment: $3,500
Closing Price: $162,000
End Date: Mar 29, 2019, 1:26 PM MDT
Dollar Age:

4.47 Years

Last 12 Months' Royalties: $35,013
Investment Term: 10 years*
Distributors: BMI
Rights Included:

Public Performance 

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution: June 21, 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
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: BMI

Description

Place a bid on these consistent public performance royalties from the 2015 single “Wet Dreamz” from hot hip-hop artist J. Cole.

Not surprisingly, streaming is the leading income source for the track, with 49% of earnings in the last 12 months. Although streaming royalties are down slightly, revenue from Spotify (the highest-earning platform) is consistent — averaging $6,600/year for the last three calendar years. “Wet Dreamz” has a staggering 362+ million spins on Spotify and is J. Cole’s second most popular song on the platform.

The track also has strong international earnings (with 40% of income last year) and "Wet Dreamz" still continues to garner radio play, nearly 5 years after its release. The single was a success on the hip-hop charts, peaking at No. 12 on Billboard’s Hot Rap Songs and is certified-Platinum. "Wet Dreamz" also saw mainstream success, peaking at No. 61 on the Hot 100.
 
Interestingly, J. Cole sampled a portion of a 1976 funk/soul song (titled “Mariya" by Family Circle”) for "Wet Dreamz" — click here to hear the comparison. The seller had a songwriter credit on "Mariya" and as a result, the seller was credited on J. Cole's "Wet Dreamz." What is being sold in this listing is the seller’s credit (and royalties) on the title “Wet Dreamz,” as a result of the sample.

Key Drivers

Dollar Age This offering has a Dollar Age of 4.47 years. This means the royalties earned in the last 12 months came from a song that was released nearly five years ago. A high Dollar Age like this suggests stability and longevity.

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 49% of last year’s income from streaming platforms. You can benefit from this rise in hip-hop as a genre on streaming platforms with this hip-hop offering.

New Releases. J. Cole just released a single in January 2019, and he’s set to drop a compilation album, Revenge of the Dreamers III in April 2019. While the new songs are not included in this auction, new albums and tours can certainly boost an artist's back catalog. The release of new music can lead to discovery among first-time listeners, and re-engage existing fans.

About the Royalty Distributor

Broadcast Music, Inc. (BMI) is one of four United States performing rights organizations, along with ASCAP, 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 BMI’s distribution schedule, click here.

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