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.
1% of closing price or $500 (whichever is greater)‡§
‡ Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.
You’ll notice a spike in earnings in H1-2020. This is the result of catch-up YouTube payments for “Stop Cappin'' from prior performance periods. Songtrust began administering the royalties for this catalog in late 2019, however, prior to that, there were uncollected YouTube royalties due to the songwriter. These royalties were paid to the songwriter once Songtrust began administration. It’s unlikely other payments like this will occur again, but if it does the winning investor will be entitled to them.
ABOUT THE CATALOG:
Blueface’s “Stop Cappin” is this catalog’s foundation — with 95% of last year’s earnings.
The 2019 track was released on Blueface’s Dirt Bag EP, which peaked at No 48 on the Billboard 200. There’s also a version featuring The Game. To date, “Stop Cappin” has 22+ million streams on Spotify, while the video has over 30 million views on YouTube.
Also included in this collection are: “Jesus” by RJmrLA, Steelz, and Rucci and “Top Down” by RJMrLA and Royce The Choice, along with others.
Income Mix. The winner of this auction can receive income in various ways:
Mechanical: Royalties paid to songwriters and publishers when music is sold (think CD or vinyl) but also when music is streamed “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.
Synchronization: Royalties paid to songwriters and publishers for the licensing of a song in music for a movie, TV show, or commercial.
Streaming Growth Worldwide. According to IFPI’S Global Music Report 2021, subscription streaming revenues for recorded music increased 18.5% over the previous year. That’s the sixth consecutive year of growth, totaling 443 million paid subscription accounts worldwide. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues.
About the Royalty Distributor
Songtrust is a global digital rights management platform allowing music creators to independently manage their composition royalty rights. Based in New York, it is a division of Downtown. Songtrust streamlines the music publishing administration of 2,000,000+ songs.
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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