Contemporary Christian — Producer Royalties

Growing streaming drives this 8-year-old catalog with tracks from Christian artist Jason Gray.

$41,500

closing price

Auction Closed

Top Bid: Frank H

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: $20,000
Bidding Increment: $250
Closing Price: $41,500
End Date: Sep 21, 2020, 1:00 PM MDT
Dollar Age:

8.37 Years

Last 12 Months' Royalties:

$5,069

Investment Term: Life of author + 70 years
Distributors:

Centricity Music

Rights Included:

Sales, Streaming, Sync 

Interests Included:

Producer (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): September 30, 2020
Distribution Frequency:

Biannually 

Buyer Fees:

1% of closing price or $500 (whichever is greater)‡§

Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.

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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, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements, Samples, etc.
Distributors: Centricity Music

Description

Collect sound recording royalties from two studio albums performed by contemporary Christian artist Jason Gray, along with an album from worship band Sixteen Cities

The winning bidder will collect royalties generated from any sales, streaming, and sync fees for both albums and singles. Sales and streaming, in particular, pay a greater share of revenue to sound recording royalties over composition royalties. 

LISTING HIGHLIGHTS:

  • Life of Rights investment term
  • Over 8-year Dollar Age 
  • Valuable sound recording royalties, with streaming growth

FINANCIAL HIGHLIGHTS:

All four major income sources grew year-over-year for this catalog. Streaming drives earnings with 64% of returns in the last 12 months, an increase of 20% year-over-year. 

You’ll notice a spike in earnings in H1-2018. This is a result of $2,081 in adjustment payments paid by the record label for various songs/albums in this catalog. This adjustment is not expected to occur again, but it's important to note that the underlying income sources are growing year-over-year. 

Royalties for four of the top-five releases also grew. That’s rather impressive for songs dating back to 2009 and 2011. The top track is “Remind Me Who I Am,” which accounted for 55% of last year’s total, an increase of 7% over the prior year. 

ABOUT THE CATALOG:

This catalog prominently features two albums from Christian artist Jason Gray: Everything Sad Is Coming Untrue (2009) and A Way to See in the Dark (2011). 

The top-earning single is “Remind Me Who I Am” from A Way to See in the Dark. The album was well-received by critics and fans, peaking at No. 29 on Billboard’s Top Christian Albums chart, with “Remind Me Who I Am” capturing the No. 5 spot on the Christian Songs chart. Other notable titles from the album include “Good To Be Alive,” “Nothing Is Wasted,” and “The End of Me.”

“More Like Falling In Love” from Everything Sad Is Coming Untrue brought in 8% of last year’s returns. The track peaked at No. 13 on the Christian Songs chart and was the most popular single from the album. 

Finally this collection also contains songs from Christian worship band Sixteen Cities, most notably tracks from their self-titled debut album.

Key Drivers

Dollar Age. This catalog has a Dollar Age of 8.37 years. A high Dollar Age like this suggests stability and longevity. 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.

Sound Recordings. Sound recording royalties benefit from streaming disproportionately more than composition-based royalties. If Spotify pays 70-cents of every dollar on music rights, 60-cents of that goes to the sound recording copyright (which the label splits with the artist based on their contract agreement), while the remaining 10-cents goes to the composition copyright.

Record labels see significant benefits as a result. According to an analysis of publicly-stated financial results by Music Business Worldwide, labels Universal, Sony, and Warner jointly turned over just over $6.93 billion globally last year from streaming income alone.

You can see this trend reflected in the catalog up for bid. This is good news for you as the investor, as it follows the industry macro trend of rising streaming royalties for labels.

Multiple Income Streams. The winner of this auction can receive royalties from various streams:

  • Sales: Royalties paid to artists and producers when a recording is sold, which can be downloaded (on a platform like iTunes), as well as physical copies being sold (such as a C.D.).
     
  • Streaming: Royalties paid to artists and producers when a recording is streamed “on-demand” (like Spotify or Apple Music for example).
     
  • Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.

WHAT IS BEING SOLD?

The Seller's interest in all sound recording royalties (except for non-interactive digital performance royalties distributed by SoundExchange) attributable to the sound recordings listed in the Track List noted above. 

About the Royalty Distributor

Centricity Music is a faith-centered record label with a commitment to artist development. Founded in 2005 and based in Franklin TN, Centricity provides both label and publishing services for its roster of artists. 

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