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.
“Came Here For Love” is off Sigala’s debut studio album Brighter Days. The song is one of six UK Top 10 singles off the 2017 album, peaking at No. 6. The tropical house track was a global hit going Platinum in the United Kingdom and Gold in Italy and Australia. “Came Here For Love” accounts for 97% of last year’s revenue and to date has nearly 232 million spins on Spotify.
Streaming income makes up 66% of this offering’s royalties in the last 12 months, and royalties have remained rather stable year-over-year. Apple Music is the leading streaming platform, with 28% of last year’s total revenue. TV/Film royalties are also up, as “Came Here For Love” was placed in the feature film Pitch Perfect 3, and the reality TV show Dancing With The Stars.
Also included in this collection is 2016’s “When The Bassline Drops” from Craig David and British rapper Big Narstie.
Streaming Growth in The United States. According to BuzzAngle's 2019 Year-End Report, on-demand streams set a new record high again with 705 billion, up 32% compared to 2018. On-demand streaming now represents 85% of all music consumption in the United States. This is good news for you as the investor, as 66% of this catalog’s income comes from streaming platforms.
Active Tour. Sigala is currently touring in Europe with dates through March 2020. Tours give artists the chance to solidify their current fan base and expand their reach to new listeners.
TV/Film Placements. This catalog benefits from placements in TV/Film because “Came Here For Love” is placed in the feature film Pitch Perfect 3 and was also featured on Dancing With The Stars. Every time either program air on TV or are streamed on-demand, a public performance royalty is generated. As the winner of this auction, you'll collect the performance royalties for the song's use in TV/Film for the next 10 years.
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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