Huge Catalog of Covers & Instrumentals

Earn 50% of digital download and streaming royalties for a 693-album catalog of sound recordings. The albums include covers of popular American and Latin music, as well as instrumental, karaoke, and background tracks.

$140,000

closing price

Auction Closed

Top Bid: Alexander K

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: $55,000
Bidding Increment: $2,500
Closing Price: $140,000
End Date: May 18, 2017, 3:22 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $22,582
Royalty Type: Sound Recording
First Payment: June 2017
Fees: $99/year Royalty Exchange Admin Fee

*Royalty Exchange will collect the winning bidder's portion of the royalties and make payments on a quarterly basis. The $99 yearly administration fee will be deducted from the first quarterly payment in each calendar year.

Description

This auction is unique. It includes 50% of digital download and streaming royalties for a huge catalog of sound recordings. But, it also includes 50% of royalties for all future albums added to the catalog. And the seller plans to add many more in the near future.

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

The 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.

In the last 12 months, 50% of this catalog earned $22,582 from downloads and streaming. Its earnings come from countries all over the world, but the majority come from Latin America, one of the fastest growing regions for digital music in the world. In 2015, Latin American digital music revenue grew by 44.5%.

You'll share equally 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

  1. Viel Music plans to add many more albums to their catalog in the coming years. And the winning bidder will be entitled to the same 50% split of royalties for all those new songs. The upside of royalties from yet-to-be-released tracks is a benefit that is not often offered in royalty auctions. Since Viel Music will continue to earn 50% of the royalties as well, they have incentive to continue to produce more music and maximize its revenue.
  2. Digital and streaming royalties are growing worldwide, and this catalog is driven by digital revenue. And digital revenue is growing even faster in Latin America. In 2015, Latin American digital revenues rose 44.5%, more than four times the global average.

What is being sold?

50% 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 50% interest in the royalties includes a security interest in 50% 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 50% of the royalties. This catalog is distributed in over 350 music outlets worldwide, including iMusica, Spotify, Deezer, iTunes, and Google. Plus, you'll receive 50% of royalties for any songs added to the catalog after the sale.

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: 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.

*Royalty Exchange will collect royalties from Believe and pay the winning bidder's 50% share on a quarterly basis.

Financials

Documents

Media

Post-Auction Process

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