Drake’s “Fire & Desire” — Publishing Royalties

This publisher’s share of royalties features three different income streams tied to music by Drake and others.

$59,000

closing price

Auction Closed

Top Bid: Eric D

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: $45,000
Bidding Increment: $2,000
Closing Price: $59,000
End Date: Apr 02, 2020, 3:00 PM MDT
Dollar Age: 3.54 Years
Last 12 Months' Royalties: $19,826
Investment Term: 10 years*
Distributors: The Administration MP
Rights Included:

Mechanical, Public Performance, Sync

Interests Included:

Publisher (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): May 15, 2020
Distribution Frequency: Quarterly
Buyer Fees:

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

* Please see the FAQ tab for more information on the 10-year investment term.

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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 & Performances, Samples, etc.
Distributors: The Administration MP

Description

Up for bid are publishing royalties for a catalog of songs led by Drake’s 2016 hit single “Fire & Desire,” along with tracks from En Vogue, Ne-Yo, K. Michelle, and more. 

An investor purchased this catalog in a Life of Rights auction on the Royalty Exchange platform last year — you can see that auction here — and is now offering it to others as a 10-Year Term. 

FINANCIAL HIGHLIGHTS:

Every source of royalties tied to this catalog has increased by double-digits in the last 12 months, with two boasting triple-digit growth rates. 

Public performance and mechanical royalties lead the way, generating 45% and 41% of the last 12 month’s earnings, respectively. Public performance royalties grew by 89% last year, with mechanical increasing 22%. 

This increase can be attributed to the catalog’s mix of new releases as well as consistent earnings from older tracks. 

The top-producing title is Drake’s “Fire & Desire,” with 42% of last year’s royalties and incredibly stable earnings compared to the prior year. Rounding out the top-five tracks are four 2018 singles that continue to grow due to their recent release. 

ABOUT THE CATALOG: 

“Fire & Desire” (2016) peaked at No. 30 on Billboard’s Hot R&B/Hip-Hop Songs chart and to date has over 156+ million Spotify spins. The hit features a sample of Brandy’s 1994 release “I Dedicate,” which is also featured in this collection. “Fire & Desire” was released on Drake's 4x Platinum album Views. The album itself was nominated for Album of the Year as well as Best Rap Album at the 2017 Grammys.

The catalog’s next highest-earning track is 2018’s "Rocket" from Grammy-nominated group En Vogue. The title peaked at No. 8 on Billboard's Adult R&B Songs chart, becoming the group’s first top 10 hit in 20 years. 

This offering also includes two singles from Ne-Yo’s 2018 album Good Man: “HOTBOX” featuring Eric Bellinger, and “Back Chapters.” Combined they accounted for 16% of last year’s earnings. 

Finally, this collection includes the Platinum-selling, 1993 release “My Love Is The Shhh" from R&B group Somethin' for the People.  

Key Drivers

Income Mix. The winner of this auction can receive income in various ways:

  • Mechanical: Royalties paid to songwriters and publishers when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).
     
  • Performance: Royalties paid to songwriters when music is performed publicly. Music played over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.
     
  • Synchronization: Royalties paid to songwriters and publishers for the licensing of a song in music for a movie, TV show, or commercial.

Drake’s Continued Relevance. To say Drake is massively popular is an understatement. The four-time Grammy-winner is touted as one of the world's best-selling music artists, with over 170 million records sold. Drake is also ranked as the world's highest-certified digital singles artist by the Recording Industry Association of America (RIAA). Today, he has nearly 48 million monthly listeners on Spotify, making him the 10th most-streamed artist in the world. 

He holds a number of historic Billboard chart records including Most Simultaneously Charted Hot 100 Titles, Most Top 10 Hot 100 Debuts in a Week, Most Hot 100 Top 10s Among Solo Males and many more. Click here to view the full list.

He’s rumored to have a new album dropping in 2020 — prefaced with two single he released in March 2020. While new songs are not included in this auction, the release of new music reengages existing fans and draws discovery among new fans.

About the Royalty Distributor

The Administration MP is a music publishing service for songwriters, producers, beat-makers, and artists. The Administration MP registers, licenses, administers, and most importantly, collects royalties around the world, for their customers.

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