Hip-Hop Publishing Featuring Ca$h Out

Earn from multiple royalty streams on this hip-hop offering with a 5+ Dollar Age. 

$71,500

closing price

Auction Closed

Top Bid: Michael B

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: $46,000
Bidding Increment: $1,500
Closing Price: $71,500
End Date: Mar 27, 2020, 1:04 PM MDT
Dollar Age: 5.89 Years
Last 12 Months' Royalties: $15,299
Investment Term:

At Least 26 Years (See Note Below)

Distributors: The Administration MP
Rights Included:

Mechanical, Public Performance, Sync

Interests Included:

Publisher (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): May 15, 2020
Distribution Frequency: Quarterly
Buyer Fees:

1% of closing price or $500 (whichever is greater)

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What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
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: The Administration MP

Description

This catalog offers publishing revenue from established hip-hop tracks.

Listing Highlights: 

  • Multiple royalty types, including valuable streaming mechanical earnings
  • Over 5-year average Dollar Age

FINANCIAL HIGHLIGHTS:

Mechanical royalties are this catalog’s top source of earnings at 75% in the last year. Public performance income follows with 12%. 

You’ll notice a significant spike in mechanical earnings in Q1-2019. This is a result of a one-time catchup payment of older mechanical royalties (dating from 2015), paid by the record label Entertainment One for songs off Ca$h Out’s album Let's Get It. This offering includes all 12 singles from the album and mechanical royalties for those songs were paid by the label in Q1-2019. Although this is not expected to be repeated, as the winner of this auction you are entitled to any future one-time payments.

ABOUT THE CATALOG:

This collection features Ca$h Out’s Platinum-certified, debut single “Cashin Out,” along with all 12 tracks from his 2014 studio album Let’s Get It

“Cashin Out” (2014) generated 17% of last year’s earnings. It was certified Platinum in 2013, peaked at No. 1 on Billboard’s Hot Rap Songs, and enjoyed crossover appeal by hitting No. 36 on the Hot 100. 

But last year’s top-earning song was Ca$h Out’s “She Twerkin” with 46% of earnings. The track hit No.  7 on Billboard’s Hot Rap Song, was certified Gold, and is Ca$h Out’s most-popular song on Spotify with over 46 million spins. There is a year-over-year increase in earnings for the single, which is a result of backed mechanical royalties recently paid in 2019 (noted above). 

Finally, this catalog also includes a newer release “Pull Up Wit Ah Stick” from hip-hop artist SahBabii featuring Loso Loaded. The single brought in 20% of last year’s income, has amassed over 60 million video views on YouTube, and over 38 million Spotify spins. 

Note: As this is the publisher’s share of the catalog, the songwriters have the option to take back their copyright assignment in 26 years. So the catalog is listed as a 26-year term but could continue longer if the songwriters do not choose the option. Click here to learn more about copyright termination.

Key Drivers

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

Dollar Age. This catalog has a Dollar Age of 5.89 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for more than five years. A high Dollar Age like this suggests stability and longevity. A catalog containing mature works is something worth noting as an investor, as it can help sustain a catalog's earnings moving forward.

Hip-Hop & Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to BuzzAngle's 2019 Year-End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Six out of the top 10 streamed songs were hip-hop/rap and 52 out of the top 100 most streamed songs were hip-hop/rap.

NOTE ABOUT INVESTMENT TERM

The investment term is “at least 26 years” because U.S. copyright law gives artists and songwriters the right to terminate a copyright assignment after 35 years. The underlying songwriters of this catalog may have the right to terminate the original copyright assignments, the first of which occurred in 2011, beginning in 2046 (35 years from 2011). Click here to learn more about copyright termination.

About the Royalty Distributor

The Administration MP is a music publishing service for songwriters, producers, beat-makers, and artists. The Administration MP registers, licenses, administers, and most importantly, collects royalties around the world, for their customers.

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