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.
May 15, 2018, 3:43 PM MDT
Life of author + 70 years
Last 12 Months' Royalties:
Sound Recording Performance
Earn royalties from one of the biggest names in hip-hop! This offering features sound recording royalties from Dr. Dre’s “What’s The Difference,” featuring Eminem and Xzibit. In the last 12 months, this recording generated $5,453 in performance royalties.
“What's The Difference” is from Dr. Dre's six-time Platinum-selling album 2001. Released in 1999, the album debuted at No. 2 on the Billboard 200 and No. 1 on Billboard's Top R&B Hip-Hop Albums. Although not officially released as a single, "What's The Difference" received radio airplay which resulted in it charting at No. 68 on Billboard’s R&B/Hip-Hop Airplay. To date, the title has over 90 million Spotify spins and is Dr. Dre’s fifth most popular song on the platform.
The seller performed background vocals on the recording and receives non-featured performer digital performance royalties. AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund, a non-profit organization that distributes royalties to session musicians and background vocalists, pays these royalties annually.
This asset features a title from the most-streamed genre in 2017: hip-hop. Hip-hop overtook rock in 2017 as the most popular genre of music in the U.S., accounting for 24.5% of all music consumption. The driver for the increase is streaming. It’s worth noting that the vast majority of these AFM & SAG-AFTRA royalties come from digital streaming (like Spotify).
According to BuzzAngle’s 2017 Music Report: Urban songs (Hip-Hop/Rap and R&B) were the most streamed songs in 2017, accounting for 32% of all streams. "What's The Difference" is a perfect example of these two trends: hip-hop and streaming's worldwide growth.
What is being sold?
100% of seller's interest in the non-featured performer's share of royalties attributable to the sound recording "What’s The Difference” by Dr. Dre.
How does this asset make money?
The vast majority of royalties come from digital streaming on platforms like Spotify, Pandora, Google Play, and Sirius XM Radio. Each year, AFM & SAG-AFTRA calculates this song's share of the total royalties collected for the non-featured performer's fund and distributes royalties accordingly. AFM & SAG-AFTRA make payments once a year at the end of April.
Royalty Exchange will administer the payments to the winner of this auction and the first distribution you will receive is April 2019.
For more information on the AFM & SAG-AFTRA Fund, click here. For a detailed breakdown of how they calculate and pay royalties, click here.
What rights are included?
Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc.
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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