Grammy-Winning Hip-Hop Single + More

Bid on consistent royalties generated from T.I.’s 2x Platinum, Grammy-winning hit “What You Know,” along with other tracks from 2 Chainz, Drake, and Lil Wayne.

$8,600

closing price

Auction Closed

Top Bid: Anthony F

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: $4,700
Bidding Increment: $150
Closing Price: $8,600
End Date: Jan 04, 2019, 3:00 PM MST
Last 12 Months' Royalties:

$1,588

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

Public Performance 

Interests Included:

Songwriter (World) & Publisher (U.S. Only)

Track List:

Track List

First Distribution:

January 7, 2019

Distribution Frequency: Quarterly
Buyer Fees:

$500

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

What rights are included?

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  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

What rights are included?

Description

...

Key Drivers

...

  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

About the Royalty Distributor

Description

Invest in this hip-hop collection highlighted by the double-Platinum hit “What You Know” from southern hip-hop artist T.I. This 2006 release won "Best Rap Solo Performance" and was nominated for "Best Rap Song" at the 49th Annual Grammy Awards.

“What You Know” (also known as "What U Want") accounts for 70% of this catalog’s income last year, and royalties are growing — up 21% compared to last year. This growth can be attributed to streaming services Pandora, Apple Music, and Spotify. Impressively, “What You Know” was released almost 13 years ago but still gets radio play today, with the song’s radio earnings grew over 10% over the previous year.

But overall, streaming accounts for 73% of this catalog's royalties in the last 12 months. Other featured tracks also include a 2017 release “Burglar Bars” from 2 Chainz and “I Do it” with 2 Chainz featuring Drake, and Lil Wayne.

Key Drivers

Hip-Hop & Streaming. Hip-hop overtook rock in 2017 as the most popular genre of music in the U.S. In the first half of 2018, it accounted for 31% of all music consumption. According to the Nielsen report, total consumption of Urban songs (Hip-Hop/Rap and R&B) grew by 18% in both sales and streams.

This catalog is a perfect example of these two trends: hip-hop’s and streaming's growth worldwide. Streaming accounts for 73% of the catalog’s earnings in the last 12 months. These streaming royalties are also on the rise, growing 20% compared to the previous four quarters’ earnings.

Song Age. This catalog contains music with release dates spanning as far back as 2006 to 2017. This provides a diverse income mix between new(er) releases and proven mature works. Industrywide, “Catalog Songs” (music released more than 18 months ago) and “Deep Catalog” (music released more than 3 years ago) together represent over 60% of music streamed today.

This collection of songs aligns with this trend. The catalog’s highest-earning track — “What You Want” — was released almost 13 years ago. A catalog containing more mature works is something worth noting as an investor.

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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