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.
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.
Up for a bid is an eclectic catalog with music from EDM, pop, rock, and folk artists from around the world.
The highest-earning income source is international public performance — 42% of last year’s revenue comes from upwards of 75 countries outside the United States. International streaming is the second leading source, with 23% of royalties generated in the last 12 months. What’s exciting is that these earnings saw impressive growth, up 56% year-over-year.
The catalog’s highest-earning title is “House On Fire” from the blues/rock band Tyler Bryant & The Shakedown. The 2013 release brought in 27% of last year’s income. Interestingly, “House On Fire” was placed in the fifth episode of Season 6 of F/X’s popular TV series Sons of Anarchy. This means every time that episode re-airs on TV or streamed on-demand, you’ll earn public performance royalties for the song.
Another notable title in this collection is “Hung Up,” a 2017 collaboration between Tritonal and Sj. The track has an impressive 37+ million spins on Spotify and grew 28% year-over-year. Also featured is “Ready To Love You” from Danish DJ Hedegaard, 2013’s “Bittersweet” from alternative/indie duo ARCHIS, and “Traveling Alone” from Norwegian singer/songwriter Marit Larse, among many other.
Streaming Growth Worldwide. According to IFPI’S Global Music Report 2019, streaming revenues were up 34% in 2018, accounting for nearly half (47%) of total recorded music revenues. By the end of 2018, there were 255 million users of paid subscription accounts globally.
This is good news for you as the investor, as this catalog’s international streaming income is seeing impressive year-over-year growth of over 50%.
Diversity in Song Income Mix. Revenues are also widely distributed — the single highest-earning song only accounts for 22% of last year’s collective income from both distributors. This means the catalog’s earnings are not tied to the success of a single track and provides built-in diversification for you as an investor.
International. The majority of this catalog’s earnings come from abroad, over 85% of last year’s earnings. International royalty distribution/collection can lag behind domestic payments and arrive with limited detail. As the winner of this auction, you’ll be entitled to any past performance royalties paid by AMRA and SESAC, regardless of when they were earned.
About the Royalty Distributor
SESAC is one of four United States performing rights organizations, along with ASCAP, BMI & 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 SESAC’s distribution schedule, click here.
Public performance royalties are payments made by radio stations, hotels, restaurants, night clubs, etc. to the composition copyright holder(s) for each public performance of the copyrighted work. In the U.S., public performance royalties are typically paid to performing rights organizations (e.g., ASCAP, BMI) who then distribute the royalties to the copyright holder(s).
Mechanical royalties are royalties deriving from per-unit payments made by recording companies or digital download providers to the composition copyright holder(s) for every purchase of a sound recording that reproduces the copyrighted composition.
Non-interactive digital performance royalties are payments made by non-interactive music services (i.e. those that mimic the experience of a radio broadcast) of a statutorily-set amount (on either a per-play or annual basis—depending on the type of service) to SoundExchange for the benefit of the sound recording copyright holder and the performing artists for the right to perform the copyrighted sound recording via non-interactive, digital means.
non-interactive digital performance royalties
The royalties owed to the creator(s) of a musical composition which are paid in return for the right to reproduce, distribute, or perform the copyrighted work.
A musical composition is one of the two copyrightable parts of a recorded song. It consists of the song's music, including any accompanying words, (i.e. the portion of a song that is capable of being fully expressed as sheet music) and is separate from any particular recording of the song or its performance by any particular artist.
A sound recording is one of the two copyrightable portions of a recorded song. It results from the fixation of a series of musical, spoken, or other sounds in a tangible (at least momentarily permanent) medium.
The portion of royalties owed to the owner of a sound recording. The owner may the performing artist, the producer, or another party (such as a record label) who contractually acquired the ownership of the copyrighted work (e.g., through a recording agreement), owns it by virtue of an employer-employee relationship with the creator(s) of the work, or specially commissioned the work.
rights owner's share
The portion of royalties owed to the performers of a sound recording in return for the right to perform the copyrighted work via non-interactive, digital services (e.g., Pandora, Spotify).
The portion of royalties owed to the music publisher which are paid in return for the right to reproduce, distribute, or perform a copyrighted musical composition, arising from a contractual obligation (i.e. a publishing agreement) or employer-employee relationship with the creator of composition (i.e. the songwriter(s)).
If an asset requires splitting up a catalog by works or percentages, Royalty Exchange may need to provide royalty accounting services to the buyer, seller, or both. This is because the royalty distributor may not be able to split royalties as intended by the asset transfer. Royalty Exchange's involvement helps to ensure accurate royalty payments. It also helps assure buyers and sellers that they are not missing out on potential earnings.
The accounting process often involves manual spreadsheet work and coordinating with royalty distributors. Royalty Exchange's goal is for the accounting service to be temporary. We plan to work with distributors to find solutions that will allow us to revert accounting and payment obligations back to the distributor, removing ourselves from the process. In the meantime, we've instituted the 5% fee to help offset costs in the manual accounting.
Please see the sample accounting agreement document for reference.
Why does Royalty Exchange need to account?
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