Contemporary Worship: Producer & Publishing Royalties

Invest in royalties from both the sound recording and musical composition from a catalog of popular worship music by Bethel Music.

$126,000

closing price

Auction Closed

Top Bid: Shem I

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: $60,000
Bidding Increment: $2,000
Closing Price: $126,000
End Date: Nov 30, 2017, 3:07 PM MST
Investment Term: Life of author + 70 years
50% of Last 12 Months' Royalties: $20,752
Royalty Type: Musical Composition: Public Performance, Mechanical, & Sync Sound Recording: Sales & Streaming
First Payment: February 2018
Buyer Fees: None

Description

This is your opportunity to collect royalties from both the musical composition and sound recording sides of a music catalog. We recently sold 50% of the seller's interest in this catalog which you can view here. Now you have the chance to invest in the other 50%. This asset is especially interesting because this catalog earns royalties from a unique and lucrative source: direct licensing to churches (see more about CCLI royalties below). In the past 12 months, 50% of the royalties generated by this collection of popular worship music came to $20,752.

Up for auction is the remaining 50% of the seller's interest in the publishing royalties and 50% of the seller’s remaining interest in the producer’s share of sound recording royalties for this catalog. This music is published and produced by Bethel Music, an American Christian worship group. Bethel Music focuses on producing worship songs and albums that are largely written and recorded by members of their Artist Collective.

Publishing royalties make up 66% of this catalog from three different income streams: mechanical, sync, and public performance royalties. This means you can earn income in multiple ways. Every time a church licenses a song in the publishing catalog, or if any song is played on the radio, streamed, downloaded, sold, covered by another artist, or used in a video project, you'll earn money.

In fact, the two top-earning songs on the publishing side, “Forever” and “Ever Be,” both have covers from multiple artists. Royalties from “Ever Be” experienced a 66% growth rate in the last four quarters over the previous. One reason for this might stem from the fact that multiple Dove Award-winning artist Aaron Shust covered “Ever Be” last year. Shust also released a live album in March with a live version of “Ever Be” on it as well. And the winner will collect royalties from any of these versions, and any time a new artist records a version of a song in this catalog. Finally, “Ever Be” was recently nominated for Worship Song of The Year at the 2017 GMA Dove Awards.

On the sound recording side, you will collect the producer's share of sales and streaming royalties. The producer's share comes from the seller's work in creating the sound recording for some of these tracks. For example, the seller is a songwriter for the song “Forever” and receives publishing royalties on the musical composition side. But the seller also produced the sound recording for Brian Johnson's version of “Forever,” as well as Kari Jobe's version of the song. That means that you'll earn sales and streaming royalties for these two versions of the sound recording on top of publishing royalties for the composition. Anytime someone streams or buys a CD or a digital download of one of the songs or albums in this catalog, you will earn money.

Key Drivers

1) Multiple income streams. You will collect multiple streams of income from both the sound recording and musical composition, and sometimes on more than one recording of the same song. Earning from both the composition and sound recording copyrights is not often available in a single asset.

2) 51% of the publishing earnings comes from CCLI, Christian Copyright Licensing International. CCLI is a licensing organization that provides churches with simple, affordable solutions to complex copyright issues and ensures that artists, labels and studios receive fair compensation for their work. Churches around the world use thousands of songs each year and they need permission from the copyright owners of those songs to record them, make arrangements, duplicate copies, project lyrics on screen, etc. Through CCLI, today a church can obtain a single annual license that covers almost any song for just about any type of use they can imagine. The songs in this catalog are available on CCLI and two of the songs, “Forever” and “Ever Be,” are listed in CCLI's top 100 songs.
 

What is being sold?

50% of the seller's interest in the publisher's share of mechanical, sync, and public performance royalties and 50% of the seller’s interest in the producer’s share of sound recording royalties for a catalog of works. See the “Documents” tab for a full track list.

How does this asset make money?

On the publishing side every time "Ever Be," or any song from the publishing catalog, is licensed by a church, played on the radio or streamed, downloaded or sold, covered by another artist, or used in a video project, you'll earn money. On the producer side, anytime someone streams or buys a CD or a digital download of one of the songs or albums in this catalog, you will earn money.

What rights are included?

  Musical Composition Sound Recording
Copyright included: No No
Rights:
Mechanical
Performance
Synch
Sales
Performance
Synch
Royalty Sources: Church Licensing, Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, CD Sales, Digital Downloads, etc.
Distributed by: Bethel Music Bethel Music

About the Royalty Distributor

Bethel Music is a ministry of Bethel Church that facilitates and administrates the creation and exportation of worship songs, events, teachings, resources and technology. Bethel Music consists of several divisions. Bethel Music Publishing is a full-service publishing company that aims to promote the songs of the Bethel Music community. Bethel Music's label manages the development of songs, production of music, manufacturing of merchandise, creative marketing, and distribution of the products they create.

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