Global Hip-Hop, Pop, and R&B

This listing includes internationally recognized hip-hop and R&B artists — featuring the hit single “Heatwave” from popular DJ Robin Schulz.

$61,000

closing price

Auction Closed

Top Bid: Andrew C

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: $52,000
Bidding Increment: $1,800
Closing Price: $61,000
End Date: Feb 07, 2019, 3:03 PM MST
Last 12 Months' Royalties:

$17,982

Investment Term: 10 years*
Distributors: ASCAP
Rights Included:

Public Performance

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution: February 11, 2019
Distribution Frequency: Quarterly
Buyer Fees:

$500

* 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
Non-Interactive Streaming
Sync
Sources: 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.
Distributors: ASCAP

Description

Up for auction is a collection of global hits from hot artists like Akon, Robin Schulz, Chris Brown, Trey Songz and more.

Thanks to its international appeal, this catalog primarily earns royalties from overseas sources accounting for 79% of last year’s revenue. Domestic streaming accounts for 17% of the collection's earnings over the last 12 months and is showing the second-best year-over-year stability.

This offering's top-earning track, “Heatwave” is from world-renowned German DJ Robin Schulz. Featuring American hip-hop artist Akon, “Heatwave” charted successfully around the globe and became Gold-certified in both Germany and Italy. The house/pop anthem contributes 56% of historical earnings and 74% of earnings in the last 12 months.

Other notable tracks include “Blow It In The Wind” from Grammy-winner Chris Brown (7% of last year's earnings) and two R&B hits from vocalist Tank “You Don’t Know” and “I Wanna Be” (combined for a total of 10% of last year’s income). Not to be overlooked are 2014 titles from Trey Songz — “Smartphones” and “Loving You” — as well as “Better Half” from Boyz II Men.

Key Drivers

Song Age. Industrywide, “Deep Catalog” (music released more than 3 years ago) represents 50% of music streamed today. Impressively, this collection of songs aligns with this trend. The highest-earning track in the catalog — “Heatwave” — was released 3+ years ago. The song continues to generate royalties, especially abroad. Other top songs have release dates dating back to 2010. A catalog containing more mature works is something that is worth noting as an investor.

International Royalties. The majority of this catalog’s earnings come from abroad — at 63% of historic income. International royalty distribution can lag behind domestic payments and arrive with limited detail. Typically, these international earnings include income from radio, streaming platforms, and TV/Film.

It’s worth noting that in Q4-2017, “Heatwave” received a large payment totaling well over $10,000 from German performance organization, GEMA (the German collection society), paid to ASCAP. The large payment represents the annual income for “Heatwave” generated in Germany alone. As the winner of this auction, you’ll be entitled to any past performance royalties paid by ASCAP from other foreign societies, regardless of when they were earned.

Hip-Hop/Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to BuzzAngle's 2018 Year-End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Hip-hop/rap tracks accounted for more than a quarter of all on-demand plays on music streaming services in the U.S. in 2018. Domestic streaming brought in 17% of last year’s earnings and has the second-best year-over-year stability.

About the Royalty Distributor

American Society of Composers, Authors and Publishers (ASCAP) is one of four United States performing rights organizations, along with BMI, SESAC & 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 ASCAP’s distribution schedule, click here.

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