Hip-Hop Sound Recording Royalties

Invest in growing sales and streaming royalties generated from this catalog of hip-hop tracks.

$35,500

closing price

Auction Closed

Top Bid: Larry R

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: $11,000
Bidding Increment: $500
Closing Price: $35,500
End Date: Jan 04, 2018, 3:10 PM MST
Investment Term: At least 31 years (See Note Below)
25% of Last 12 Months' Royalties: $3,914
Royalty Type: Sales and Streaming
First Payment: February 2018
Buyer Fees: None

Description

Collect growing sound recording royalties produced by a catalog of hip-hop music from a variety of artists. As the winning bidder, you will earn royalties any time music from this collection is streamed or digitally downloaded. Over the last 12 months, this asset has produced $3,914 in earnings.

This catalog's royalties are on the rise and they come almost entirely from streaming, 99% in fact. What's more is that the top three streaming sources are showing significant growth. Spotify accounts for 73% of historic earnings and these royalties have increased over 100% in the last 12 months. Income from both YouTube and Apple Music has demonstrated triple-digit growth as well, over the last four quarters. 

The top-earning song in the catalog is “Don't Breathe” from Philadelphia hip-hop artist D. Lynch featuring Hopsin and Flowgasm. The track has over 800,000 spins on Spotify and brought in 21% of last year's royalties. Also included is the track “The Red Room” performed by HighRise, Hopsin, Yaydo, and Josiah Woods, which accounts for 16% of earnings in the last 12 months. Both songs were recently released in early 2017 and royalties are just beginning to come in.

This catalog features dozens of artists across 83 different tracks. As an added bonus, there is a song in the catalog that features hip-hop legend Snoop Dogg titled “F***in With Y'All.”

Key Drivers

Streaming. Streaming dominates this catalog's earnings, bringing in 99% of historic income. Spotify is the most lucrative source of streaming, generating 76% of royalties in the last 12 months. What's more is that Spotify and other streaming sources are seeing over 100% growth over the last four quarters.

Hip-Hop. Recently, hip-hop overtook rock as the most popular genre of music in the U.S. Hip-hop accounts for 25.1% of all music consumption, with rock right behind it at 23%. Digital streaming is the driver for the increase, as outlined by Nielsen's report.

What's exciting is that this catalog is a perfect example of these two trends: hip-hop and streaming's worldwide growth. Streaming sources account for the majority of the catalog's income with Spotify, YouTube, and Apple Music as the top sources. Streaming royalties are on the rise worldwide. If you're interested in learning more about streaming revenues' significant growth across the industry, click here.

A NOTE ABOUT INVESTMENT TERM

The investment term is “at least 31 years” because U.S. copyright law gives artists and songwriters the right to terminate a copyright assignment after 35 years. This catalog includes several sound recordings whose artists assigned the copyrights to the seller in 2013 (the artists are Bio Organic Weaponry, Goonie Wolfe, and JCue Beats). Those artists will have the right to terminate the assignments beginning in 2048. The remaining tracks by D.Lynch are not subject to copyright termination because D.Lynch is the seller and the copyrights have never been assigned. Those tracks have an investment term of the life of the author plus 70 years. Click here to learn more about copyright termination.

What is being sold?

25% of the seller’s interest in the sales, streaming, and all royalties derived from the sound recording copyrights (excluding synchronization, and non-interactive digital performance royalties) attributable to select sound recordings in the seller's “"Red Label Records" catalog. See the “Documents” tab for a full track list.

How does this asset make money?

Every time “Don't Breathe” is streamed on demand or digitally downloaded through sources like Spotify, YouTube, Apple Music, etc., you will earn money. Royalty Exchange will administer royalties from RouteNote to the buyer on a monthly basis, and the first payment will be February 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: RouteNote

About the Royalty Distributor

RouteNote is dedicated to delivering the best exposure to their customers worldwide with a variety of partners including the world’s most popular dedicated download, streaming and video services. RouteNote currently partners with over 50 of the biggest digital platforms.

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