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.
|End Date:||Jun 05, 2020, 3:00 PM MDT|
|Last 12 Months' Royalties:||$125,409|
Fixed Return Amount (See Below)
Lionsgate Films, Inc.
|First Distribution (paid 30 days from receipt):||March 31, 2021|
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.
§ Become a Royalty Exchange All Access Investor to waive auction fees and enjoy additional exclusive benefits.
This is a compelling investment case coupled with a rare income stream on the Royalty Exchange platform.
Up for bid are the film proceeds generated from the 2008 cult-classic feature film Repo! The Genetic Opera. As the winning bidder, you will collect annual payments until you receive the fixed amount of $1,184,691.82 ("Total Return").
HOW THIS INVESTMENT WORKS
This asset offers investors the right to collect film proceeds up to a fixed amount of $1,184,691.82.
With this investment, the variable is the amount of time it will take to receive the Total Return, rather than the amount of return expected. Fortunately, we can look at the earnings history of the asset and apply four scenarios to approximate the payback period.
- If future annual payments equal last year’s payment of $125,409, the investor will receive the Total Return in 9.45 years.
- If future annual payments equal the average of the last three years’ payments of $129,526, the investor will receive the Total Return in 9.15 years.
- If future annual payments equal the average of the last five years’ payments of $119,301, the investor will receive the Total Return in 9.93 years.
- If future annual payments decrease by 5% in each year, the investor will receive the Total Return in 14 years.
Nearly 12 years after its release, Repo! The Genetic Opera still continues to generate consistent earnings from cable TV airings, on-demand streaming, DVD sales, and theatrical rebroadcasts.
Over the last five years, this asset has generated payments averaging about $119,000/year, with the highest-earning distribution totaling nearly $133,000 in 2018.
ABOUT THE FILM:
Released in 2008, Repo! The Genetic Opera is a science fiction/musical horror film based on the 2002 musical of the same name. The movie stars Alexa Vega, Paul Sorvino, Anthony Stewart Head, Sarah Brightman, Paris Hilton, Bill Moseley, Nivek Ogre, and Terrance Zdunich. It developed a cult following and filled theaters with costumed fans performing shadow cast versions of the movie during the initial release and subsequent screenings.
Film Proceeds. Films and television shows, just like songs, are creative works that are protected by copyright. As such, the owners of film copyrights are entitled to the proceeds from the licensing of the copyright. In film and television, the copyright owners are typically the producers. A film’s proceeds come from theatrical ticket sales, home video, television and streaming service licensing, merchandise, soundtracks, and others.
WHAT IS BEING SOLD?
The right to receive 100% of the film proceeds (after deducting distribution fees and expenses) generated by the licensing and distribution of the 2008 motion picture Repo! The Genetic Opera, until the investor collects $1,184,691.82.
HOW DO PAYMENTS WORK?
Royalty Exchange will collect and distribute the proceeds to the investor on an annual basis. Payments will continue until the investor collects $1,184,691.82 (“Total Return”). After the Total Return has been received, the rights will revert back to the seller.
Evolution Development Partners, LLC (EDP) holds a matching right on any sale of the income generated by this royalty stream. EDP will have the opportunity to match the winning bid after this auction closes. If you are the winning bidder, EDP must first decline its matching right before you will be able to complete your purchase. For more information on how the matching right works, please email: firstname.lastname@example.org.
About the Royalty Distributor
The first major studio in decades, Lionsgate’s content initiatives are backed by a nearly 17,000-title film and television library and delivered through a global distribution infrastructure. The Lionsgate Motion Picture Group has delivered Academy Award-winning films: La La Land, Crash, Precious, and Monster’s Ball, the critically-acclaimed Wonder and blockbuster franchises like The Hunger Games, The Twilight Saga, Saw, and John Wick, to name a few.