Hip-Hop Publishing Royalties

Bid on the publisher's share of sync, mechanical, and public performance royalties generated by this rising hip-hop catalog featuring some of today’s hottest artists!

$117,900

closing price

Auction Closed

Top Bid: Andrew C

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: $90,000
Bidding Increment: $3,100
Closing Price: $117,900
End Date: Dec 07, 2018, 3:13 PM MST
Last 12 Months' Royalties: $31,183
Investment Term: 10 years*
Distributors: The Administration MP
Rights Included:

Public Performance, Mechanical, Sync

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution:

February 15, 2019

Distribution Frequency: Quarterly
Relist-Eligible?

No

Buyer Fees:

$500

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

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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: The Administration MP

Description

Up for auction are mechanical, sync, and performance royalties from a diverse selection of hip-hop idols including Lil Uzi Vert, Wiz Khalifa, Young Thug and more.

While the royalties included in this listing consist of mechanical, performance, and sync, overall mechanical royalties (royalties generated by sales and streaming) drive revenue. They make up 79% of lifetime earnings, and 55% of earnings in the last 12 months. Even better, mechanical royalties collected in the last 12 months grew significantly over the prior year. The US Copyright Royalty Board recently raised the rates digital music services must pay for mechanical royalties by nearly 44% over the next 5 years. As the winner of this auction, you will benefit from this catalog’s primary earning source.

Multiple Lil Uzi Vert tracks drive this catalog highlighted by “I Can Drive,” and “7am” which contribute 50% and 40% of this catalog’s earnings in the last 12 months, respectively. “I Can Drive” is also the fastest-growing song in this collection, showing remarkable growth over the prior 12-month period, following its 2016 release.

Finally, this collection includes a handful of Chief Keef tracks including “Bouncin” and “Sosa Chamberlain”– the latter features multi Grammy-nominated artist Wiz Khalifa. Collectively, the songs contribute to nearly 10% of royalties earned in the last 12 months.

Key Drivers

The winner of this auction can receive income from three different royalty streams:

  • Mechanical: Royalties paid to songwriters when music is reproduced, either sold ( CD, vinyl, or digital downloads) or streamed (either on-demand like Spotify or on Internet Radio like Pandora).

  • 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.

This catalog’s income mix is predominantly mechanical at 79% of historic earnings while public performance earnings contribute to 20%. Good news for the winning investor is earnings in the last 12 months are relatively even between mechanical and performance, making for an even mix of earnings between the sources. Although this collection has yet to earn a sync payment, as the winning investor, you will collect any future sync payments.

Mechanical. The US Copyright Royalty Board recently raised the rates digital music services must pay for mechanical royalties by nearly 44% over the next 5 years. Historically, this catalog has earned 79% of its royalties from mechanical royalties. What's more, in the last 12 months, these royalties have increased 145% over the previous period. As the winner of this auction, you will benefit from the mechanical rate increases as you collect mechanical royalties.

Tour & New Releases. Lil Uzi Vert is currently touring with dates set through December. He recently dropped an album titled Luv Is Rage 2 followed by a hit single with Kanye West. Tours & new releases give artists the chance to solidify their current fan base and expand their reach to new listeners.

BUYBACK OPTION

The seller has the option to buy back the royalty stream from the winning bidder after two years, at a premium of 150% of the final auction closing price.

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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