Growing Royalties: Platinum Hip-Hop and R&B

Place your bid on this growing 12-year-old catalog that features publishing royalties from multi-Platinum hip-hop and R&B artists.

$400,000

closing price

Auction Closed

Top Bid: Charles L

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: $262,000
Bidding Increment: $6,000
Closing Price: $400,000
End Date: Jul 15, 2019, 3:24 PM MDT
Dollar Age:

~ 12 Years

Last 12 Months' Royalties:

$60,673

Investment Term: Life of author + 70 years
Distributors: Sony/ATV
Rights Included:

Mechanical, Public Performance, Sync

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution: (paid 30 days from receipt):

September 30, 2019

Distribution Frequency: Biannually
Buyer Fees:

$500

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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, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors: Sony/ATV

Description

Don’t miss this star-studded catalog with some of the biggest names in music: Chris Brown, Lil Wayne, Jay-Z, Mary J. Blige, Pretty Ricky, Trick Daddy, Missy Elliott, Pitbull, Jennifer Lopez, Jamie Foxx, and many more.

What’s impressive is that this catalog’s top-five earning tracks date from 2004 to 2017. This means the catalog has a Dollar Age of approximately 12 years. (Read more about Dollar Age and why it’s important here). Not only have these songs generated royalties for upwards of twelve years, but the royalties are growing!

Another compelling feature of this offering is that each income source is seeing year-over-year growth. Mechanical and public performance royalties both increased in the last 12 months at 37% and 6%, respectively. Sync royalties also saw impressive growth, thanks to traditional sync placements (in TV/Film and commercials), as well as strong YouTube revenue.

The catalog’s highest-earning song is 2005’s Platinum single “Grind With Me” from R&B group Pretty Ricky. The single saw crossover success hitting No. 7 on Billboard’s Hot 100, No. 6 Hot R&B/Hip-Hop Songs, and No. 17 on the Top 40. “Grind With Me” saw impressive growth in the last year thanks to rising YouTube royalties (noted as sync) and increased mechanicals. This catalog also boasts five additional tracks from Pretty Ricky, including “Your Body,” which saw growth in its royalties year-over-year.

This offering also features “Let’s Go” from Trick Daddy featuring Lil Jon and Twista, accounting for 18% of last year’s income. The 2004 hit has enjoyed a variety of syncs over the years including the comedy Neighbors (2014), in addition to a recent commercial for the video game Call of Duty: Black Ops 4.

Finally, this catalog boasts diverse distribution in both age and income distribution amongst its songs. From 2017, there is “I’m Better” from Missy Elliott and “Find The Love” from Mary J. Blige. There is also Chris Brown’s 2011 hit “Wet The Bed,” along with Lil Wayne’s “Best Rapper Alive” from 2005. The highest-earning song — “Grind With Me” — only accounts for 22% of historic income. This means the catalog’s earnings are not tied to the success of a single track and provide built-in diversification.

Key Drivers

Dollar Age. This collection of songs has a Dollar Age of approximetely 12 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for more than four years. A high Dollar Age like this suggests stability and longevity.

The highest-earning track — “Grind With Me” — was released in 2005, and royalties continue to grow thanks to steady mechanical and rising sync income. A catalog containing mature works with consistent (and even growing earnings) is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.
 

Income Mix. The winner of this auction can receive income in various ways:

  • Mechanical: Royalties paid to songwriters and artists when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).

  • Performance: Royalties paid to songwriters when music is performed publicly. Music played over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.

    • Public performance earnings are the third-largest source for this catalog. However, earnings have been steadily on the rise since 2014.

  • Synchronization: Royalties paid to songwriters and publishers for the licensing of a song in music for a movie, TV show, or commercial or when music is played on YouTube.

    • This catalog has benefitted from traditional syncs many times over the past five years, with placements in TV series, feature films, and commercials. This demonstrates the catalog’s still-relevant sync potential. In fact, “Let’s Go” was just recently synced in another video game — Gears 5 — commercial released in June 2019 that has not yet been paid out. As the winning bidder, you’ll be entitled to any upfront sync fees going forward.

MATCHING RIGHT

This seller's publisher holds a matching right on any sale of the income generated by this catalog. The publisher will have the opportunity to match the winning bid after this auction closes. If you are the winning bidder, the publisher must first decline their matching right before you will be able to complete your purchase. For more information on how the matching right works, please email: info@royaltyexchange.com. 

About the Royalty Distributor

Sony/ATV Music Publishing is an American music publishing company owned by Sony through Sony Entertainment. It is the world’s largest music publishing company with a network of 37 offices in 29 cities and 22 countries across the globe. Since 2012 Sony/ATV has administered EMI Music Publishing, further extending the reach of the songs, songwriters, and artists it represents. Sony/ATV’s distribution schedule is biannual.

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