Consistent Sound Recording Royalties: Indie Hip-Hop

Collect consistent sales and streaming royalties from indie hip-hop artist Cam Meekins' best-selling album, 1993, Vol. 2.

$101,500

closing price

Auction Closed

Top Bid: Scott H

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: $37,000
Bidding Increment: $1,500
Closing Price: $101,500
End Date: Oct 31, 2017, 3:16 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $15,838
Royalty Type: Sales and Streaming
First Payment: December 2017
Buyer Fees: 5% Administration Fee

*For royalties administered by Royalty Exchange, a 5% administration fee will be deducted from each payment.

Description

Bid on a consistent catalog of sound recordings that average $1,400 in monthly royalties. If you win, you won't have to wait long for your first check because this asset pays out monthly. Up for auction are sales and streaming royalties from the hip-hop album 1993, Vol. 2 by indie hop-hop artist Cam Meekins. In the last 12 months, these recordings earned $15,838.

Boston-based indie rapper Cam Meekins came on the scene in 2011 with his mixtape 1993. The next year he was awarded best new artist at the Boston Music Awards. Since then, Meekins has released five albums, including 1993, Vol. 2, up for sale in this auction. Click on the 'Media' tab to listen to the album.

1993, Vol. 2 was released in 2014 and peaked at No. 43 on Billboard Top R&B/Hip-Hop Albums chart. Today, it is Meekin's best-selling album. If you win this auction, you will earn money from streams and downloads of the album and any of its individual songs. Royalties from streaming make up 61% of the catalog’s earnings. According to Nielsen Music's Q3 Report, streaming growth continues to accelerate in the United States as total on-demand streams for audio and video in the US is up 40.5 percent in 2017 from the 315 billion accumulated in the first nine months of 2017.

These royalties are currently collected and paid through TuneCore from sources like iTunes, Spotify, Google Play, Amazon, etc. TuneCore also provides a service which tracks and collects revenue when these sound recordings are used anywhere on YouTube. These royalties are distributed separately and you can see more details on the 'Financials' Tab.

Key Drivers

Spotify. Spotify is the largest source of royalties for this catalog at 42% of the total income. The streaming service made recent news for its rising valuation. Reports say Spotify is on pace for around $4.9 million in revenue for 2017, a 40% boost over its 2016 numbers. And its active subscriber base is growing 40% year over year.

According to ChartMetric, Cam Meekins' presence on Spotify has seen a steady increase in the last six months.
 

And his music is appearing in a growing number of playlists. As of October, his music is included in 121 playlists with a collective following of 312,000+ users. This is good news for you, as this exposes his music to new listeners and potential new fans.

What is being sold?

100% of the seller's interest in the sales, streaming, and related royalties attributable to the sound recordings listed in Exhibit B on the album "1993, Vol. 2" by Cam Meekins, currently distributed by TuneCore.. See the “Documents” tab for a full tracklist.

How does this asset make money?

Every time the album 1993, Vol. 2, or any song on the album, is streamed on demand or digitally downloaded through sources like Spotify, iTunes, GooglePlay, etc. you will earn money. Royalty Exchange will administer royalties from Tunecore to the buyer on a monthly basis and the first payment will be in December 2017.

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, Digital Downloads, etc.
Distributed by: TuneCore

About the Royalty Distributor

TuneCore is New York-based independent digital music distribution service, founded in 2005. TuneCore offers musicians and other rights-holders the opportunity to distribute and sell or stream their music through online retailers such as iTunes, Spotify, Amazon Music, Google Play, Tidal, and others.

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Financials

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