Consistent Publishing from Grammy-Winning Track “American Boy”

This remarkably consistent pop catalog features the double Platinum single “American Boy” from Estelle featuring Kanye West, along with other tracks from Macy Gray and Will.i.am.

$50,300

closing price

Auction Closed

Top Bid: Stephen T

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: $26,000
Bidding Increment: $900
Closing Price: $50,300
End Date: Aug 06, 2019, 3:00 PM MDT
Dollar Age:

11.42 Years

Last 12 Months' Royalties: $8,698
Investment Term: 10 years*
Distributors: Universal Music Publishing Group
Rights Included:

Performance, Mechanical, Sync

Interests Included:

Songwriter/Co-Publisher (World)

Track List:

Track List

First Distribution: September 30, 2019
Distribution Frequency: Biannually
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: Universal Music Publishing Group

Description

Invest in this collection of pop music highlighted by the global hit “American Boy” performed by British R&B artist Estelle featuring Kanye West. “American Boy” brought in 84% of this catalog’s royalties in the last year.

Released in 2008, on her second studio album Shine, the breezy disco-funk song became a worldwide hit. “American Boy” charted in 24 countries, reached the top five in 15 countries, and peaked at No. 9 on the U.S. Billboard 100. To date, earnings from the double-Platinum hit come from 78 different countries, led by the UK, U.S., France, Italy, and Germany. “American Boy” also won Best Rap/Song Collaboration at the 2008 Grammy Awards (and was nominated for Song of the Year). To date, the song has nearly 126 million spins on Spotify.

Interestingly, Estelle’s version of “American Boy” was actually recorded over the instrumental of Will.i.am’s song "Impatient.” This collection also features the title “Impatient,” which is off his third studio album Songs About Girls. “Impatient” accounts for 11% of this catalog’s earnings in the last year. As the winning bidder, you’ll earn from both works, as the songwriter has an interest in both, thanks to the sampling of the original work.

Also included are the songs "The World Is Crazy" (featuring Dante Santiago) from Will.i.am, and Macy Gray’s “What I Gotta Do, and “Coming Back To You." The catalog also features two songs co-written and co-produced by Justin Timberlake off Macy Gray's album Big: "Okay" and "Get Out." Finally, there is "Pose" from Justin Timberlake featuring Snoop Dogg -- a bonus track from the British, Norwegian, and Japanese version of Timberlake's 2006 album FutureSex/LoveSounds.

KEY DRIVERS

Song Age. This catalog has a Dollar Age of approximately 11.42 Years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for nearly 12 years. A high Dollar Age like this suggests stability and longevity. The catalog’s highest-earning track — “American Boy” — was released nearly 10 years ago. A catalog containing more mature works is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

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.

This catalog’s income mix is relatively evenly spread between mechanical and performance royalties. In the last 12 months, performance royalties contributed to 55% of earnings, up 14% in the same period. Mechanical royalties also saw an increase in the same period, up an impressive 32%.

Mechanical Rate Increase. 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 38% of its royalties from mechanical royalties. What's more, in the last 12 months, these royalties have increased 32% over the previous period. As the winner of this auction, you will benefit from the mechanical rate increases as you collect mechanical royalties.

New Releases. Estelle released a new album Lovers Rock less than a year ago in September 2018. While the new songs are not included in this auction, new releases can help boost an artist's back catalog. The release of new music draws discovery among new fans who are listening to artists for the first time.

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. 

NOTE ON BUYER'S FEES

IMPORTANT: The winner of this auction will incur administrative fees deducted by Universal Music Publishing Group from each distribution. The above numbers represent the distribution total without fee deductions. 

For example, in the most recent payment H2 - 2018 the fees, for National Music Publishers Association (NMPA) Membership Dues and Copyright Fee for the song “American Boy,” totaled $24.75 for the $4,351 distribution.

About the Royalty Distributor

Universal Music Publishing Group is a North American music publishing company and is part of the Universal Music Group. Universal Music Publishing is the world's second-largest music publishing company and owns or administers more than 3 million copyrights. They are one of the largest music publishing businesses in the world with more than 43 offices in 36 countries. For more information on Universal Music Group’s distribution schedule, click here and review the schedule related to copyrights.

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