Huge Catalog of Covers & Instrumentals

Earn 25% of digital download and streaming royalties for a catalog of sound recordings. This catalog includes covers of popular American and Latin music, as well as instrumentals, karaoke, and background tracks.

$75,000

closing price

Auction Closed

Top Bid: Stephen T

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: $13,000
Bidding Increment: $1,000
Closing Price: $75,000
End Date: Dec 20, 2017, 3:21 PM MST
Investment Term: Life of author + 70 years
25% of Last 12 Months' Royalties: $9,145
Royalty Type: Streaming & Digital Downloads
First Payment: January 2018
Buyer Fees: None

Description

This auction is for 25% of digital download and streaming royalties generated by a huge catalog of sound recordings. In the last 12 months, a 25% share of this asset earned $9,145.

(We recently sold 50% of the seller's interest in this catalog, the details of which you can view here. Now you have the chance to invest in a portion of the seller's remaining interest.)

Streaming is the largest source of income for this catalog at over 90% of both historic and last 12 months' earnings. The two driving forces behind these streaming royalties are the popular Latin American mobile music streaming service iMusica, and Spotify. In fact in the last 12 months, both income sources are seeing positive growth rates at 43% and 109%, respectively.

The catalog includes 693 albums of high-quality cover songs and instrumental recordings. The recordings span from classic American standards to current Latin American pop hits and much more. Many of the recordings include multiple versions of popular songs — including covers, instrumentals, a cappella, and karaoke versions.

Earnings come from countries all over the world, but the majority come from Latin America. According to the 2017 International Federation of the Phonographic Industry (IFPI) report, Latin America is one of the fastest growing regions for digital music in the world. In 2016, Latin American digital music revenue increased 31%, driven by a surge in streaming revenue growth of 57%.

These recordings are created by Viel Music, an emerging multimedia production company. The tracks are available to stream and download in more than 350 online music outlets by Believe Digital, one of the largest digital music distributors in the world. You'll share an interest with the seller in the royalties generated by this catalog and by all works added to the catalog in the future. Please see the “Financials” tab for earnings info and the “Media” tab to listen to some samples from the catalog.

Key Drivers

Digital and streaming royalties are growing worldwide, and this catalog is driven by digital revenue. What's exciting is that digital revenue is growing even faster in Latin America — which is where the majority of earnings come from for this catalog. In 2016, Latin American digital revenues rose 31.2%, again supported by the increased streaming growth (57%) from the region. Streaming is helping drive growth in developing music markets, for example with Mexico (+23.6%) seeing strong revenue growth in 2016. As the leading income country source for this catalog, this can be an appealing aspect to this asset.

What is being sold?

25% of digital sales and streaming royalties earned by the current and future sound recordings in the seller's Believe Digital labels. The labels are: Brava HitMakers, Smges-Brava, Viel Music, Viel Music Iberia, Viel Music Records, Viel Tones, and Viel-Brava. Royalties earned from Seller's direct licensing and sales of ringtones on iTunes are excluded.

The 25% interest in the royalties includes a security interest in 25% of the underlying sound recording copyrights. The buyer may exercise its security interest if the seller becomes insolvent or otherwise unable to license the sound recordings or collect royalties for the catalog.

How does this asset make money?

Every time a song from this catalog is streamed or downloaded from an online music service, you'll share in 25% of the royalties. This catalog is distributed in over 350 music outlets worldwide, including iMusica, Spotify, Deezer, iTunes, and Google. Plus, you'll receive 25% of royalties for any songs added to the catalog after the sale. Royalty Exchange will administer payments from Believe to the winning bidder and the first distribution you will receive is January 2018.

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 & Digital Downloads.
Distributors: Believe Digital

About the Royalty Distributor

Believe Distribution Services is the leading fully independent digital distributor and label services provider for artists & labels worldwide. They provide dedicated label & international campaign management, trade & digital marketing services, comprehensive video management & distribution, synchronization, and neighbouring rights.

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