Hip-Hop Catalog, Featuring Kyle Lucas

Bid on sound recording royalties from Georgia-based hip-hop artist Kyle Lucas.

$32,000

closing price

Auction Closed

Top Bid: Reece T

Overview

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: $10,000
Bidding Increment: $500
Closing Price: $32,000
End Date: Nov 29, 2017, 3:06 PM MST
Investment Term: Life of author + 70 years
50% of Last 12 Months' Royalties: $4,970
Royalty Type: Sales and Streaming
First Payment: January 2018
Buyer Fees: None

Description

Invest in a catalog that is driven by streaming. Up for auction are sales and streaming royalties from hip-hop artist Kyle Lucas. As the winning bidder you will earn royalties any time music from this catalog is streamed or digitally downloaded. In the last 12 months, these recordings earned $4,970

Royalties from streaming make up 64% of the catalog's income. Not only that, but streaming services like Spotify and Apple Music are growing sources of income for these recordings. Royalties from Spotify increased 90% over last year and Apple Music 85%.

Hailing from Marrietta, GA, Kyle Lucas released several mixtapes as a solo artist and dropped his debut album Marietta, Georgia: The Album in 2015. This auction is for the sound recording royalties produced by Lucas' two albums and associated singles, including his most popular song “Veritas” featuring Jonny Craig.

“Veritas” is the lead single off Marietta, Georgia: The Album and currently brings in 23% of this catalog's revenue. The track features soulful vocalist and frequent collaborator, Jonny Craig. To date, the song has amassed over 700,000 spins on Spotify and the video has nearly 250,000 YouTube views. Marietta, Georgia: The Album is the catalog's highest-earning release with 26% of historic income.
 

Key Drivers

1) Spotify. Kyle Lucas' popularity on Spotify has seen a stable rise over the last six months, according to ChartMetric, a music performance data tracking service. And Spotify accounts for 44% of the total income, making it the most lucrative source of royalties.

Overall music industry revenues are up 17% through the first half of the year, according to the RIAA, driven largely by streaming. Noted in the same report, streaming revenue is up 48% over last year. Meanwhile, Spotify's subscriber base has grown 40% year-over-year.

2) Touring. Kyle Lucas is actively staying in front of his fans. He is currently on tour with dates scheduled through mid-December. For an artist, a tour can help reinvigorate their back catalog such as Lucas' two albums included in this auction. Tours can also draw interest from first-time listeners and reignite existing fans' interest.

What is being sold?

50% of the seller's interest in the sales, streaming, and related royalties attributable to select sound recordings listed in the “Documents” tab.

How does this asset make money?

Every time the “Veritas” is streamed on demand or digitally downloaded through sources like Spotify, iTunes, Apple Music, you will earn money. Royalty Exchange will administer royalties from Tunecore to the buyer on a monthly basis and the first payment will be January 2018.

What rights are included?

  Musical Composition Sound Recording
Copyright included: No
Rights:
Mechanical
Performance
Synch
Sales
Performance
Synch
Royalty Sources: Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Digital Downloads
Distributed by: TuneCore

About the Royalty Distributor

TuneCore is New York-based independent digital music distribution service, founded in 2005. TuneCore offers musicians and other rights-holders the opportunity to distribute and sell or stream their music through online retailers such as iTunes, Spotify, Amazon Music, Google Play, Tidal, and others.

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