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 auction are multiple tracks from the Stellar and Dove Award Nominated group G.I. This collection features their breakout hit single “Pray and Don’t Worry” which, following its 2015 release, appeared in the Top 10 on both Billboard’s Gospel Airplay and Hot Gospel Songs charts. The track contributes to nearly half of historic earnings.
Recent earnings are driven by another hit track released in 2018, “I’m Ready." The third single from G.I.’s Top six Billboard Album Winning, the track has experienced substantial radio play, contributing to growing radio earnings for the catalog – up 15% over the prior period. In the last 12 months alone radio revenue for “I’m Ready” made up nearly half of the earnings.
It’s important to note that the majority of revenue for this catalog comes from radio royalties – at 96% of recent earnings. Songs that experience significant radio play can often build a foundation of streaming and other types of income as the radio royalties slow down. Though radio royalties are continuing to grow, streaming sources are showing promising growth as well – up 34% over the prior period.
This collection also features earnings from the gospel track “Through It All” from Tamela Mann featuring Timbaland. The track peaked at No. 3 on Billboard's Gospel National Airplay chart and collected 38% of revenue in the last 12 months.
Radio/Age-Diversity. Radio is the largest source of revenue for this catalog to date, accounting for 96% of historic royalties. Though radio royalties for this catalog are currently growing, in part due to the success of recent release “I’m Ready,” they could eventually begin to level off.
However, because of the diversified song ages in the catalog, the earnings indicate streaming growth. The 2015 release “Pray and Don’t Worry” experienced significant radio play immediately following its release, now earnings have pivoted to include streaming sources. 2018 release “I’m Ready” drove another spike in radio earnings – its initial success on radio outlets helped lay a foundation for streaming.
Historically, streaming brought in 3% of royalties. In the last 12 months, streaming royalties are now seeing a 34% increase in earnings over the prior period. As radio royalties begin to slow down, other income sources (streaming) begin to increase.
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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