Joan Baez’s “Diamonds & Rust” — Producer Royalties

Collect growing sound recording royalties from albums released by acclaimed folk icon Joan Baez. 

$63,000

closing price

Auction Closed

Top Bid: Mark M

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: $21,000
Bidding Increment: $250
Closing Price: $63,000
End Date: Jun 23, 2021, 1:25 PM MDT
Dollar Age:

44.97 Years

Last 12 Months' Royalties: $4,252
Investment Term:

At Least 49 Years (See Note Below)

Distributors: Universal Music Group Recordings
Rights Included:

Sales, Streaming, Sync

Interests Included:

Producer (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): September 30, 2021
Distribution Frequency:

Biannually

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/Commerical Placements, Samples, etc.
Distributors: Universal Music Group

Description

This is your chance to own a piece of folk music history and earn alongside an acclaimed Rock & Roll Hall of Fame inductee, Joan Baez

This offering features growing sound recording royalties from two of Joan Baez albums: Diamonds & Rust (1975) and a double live album, From Every Stage (1976). The winning bidder will collect producer royalties, generated from any sales, streaming, and sync activity for the albums and their individual tracks. 

LISTING HIGHLIGHTS:

  • Valuable sound recording royalties
  • Impressive streaming activity with year-over-year growth
  • Life of Rights investment term

FINANCIAL HIGHLIGHTS:

Overall royalties generated by this catalog grew year-over-year for the last five years. That’s rather impressive for songs recorded over 45 years ago. In the last year alone, total earnings increased by 14%. 

Streaming is the top royalty-generating format for this catalog. Spotify brought in 31% of earnings in the last year, which was 36% more than the prior year. Amazon and Apple Music payments also increased year-over-year and round out the top three streaming services. The inherent streaming growth is something to take note of as it's aligned with industry trends. 

The catalog’s highest-earning track is “Diamonds & Rust” with 52% of last year’s returns. It also saw significant year-over-year growth thanks to increased Spotify and Amazon royalties. 

ABOUT THE CATALOG: 

Joan Baez’s Diamonds & Rust was released in April 1975, featuring covers of songs written or performed by Bob Dylan, Stevie Wonder, The Allman Brothers, Jackson Browne, and John Prine. The album was certified Gold and contains a number of Baez’s own compositions, including the title track “Diamonds & Rust.”

Released in 1975, “Diamonds & Rust” is widely regarded as Baez’s best-known song, among critics and fans alike. The song recounts a former relationship she had with Bob Dylan. “Diamonds & Rust” became a Billboard Top-40 hit peaking at No. 5 and No. 35 on the Hot 100. 

Also featured in this catalog are songs from a double live album — From Every Stage —  recorded by Joan Baez on tour in the summer of 1975. Officially released in January 1976, the album is split with one half played with acoustic guitar, while the second half features electric backup. 

Top tracks from that album include two performances of Bob Dylan compositions: "Blowin' in the Wind” — which was later included on the Forrest Gump soundtrack album — along with “Forever Young.” 

Key Drivers

Dollar Age. This catalog has a Dollar Age of 44.97 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for nearly 45 years. A high Dollar Age like this suggests stability and longevity.

A catalog containing mature works with consistent (and even growing earnings) is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

Streaming Growth Worldwide. According to IFPI’S Global Music Report 2021, subscription streaming revenues for recorded music increased 18.5% over the previous year. That’s the sixth consecutive year of growth, totaling 443 million paid subscription accounts worldwide. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues.

Sound Recordings. Sound recording royalties benefit from streaming disproportionately more than composition-based royalties. If Spotify pays 70-cents of every dollar on music rights, 60-cents of that goes to the sound recording copyright (which the label splits with the artist based on their contract agreement), while the remaining 10-cents goes to the composition copyright.

Multiple Income Streams. The winner of this auction can receive royalties from various streams:

  • Sales: Royalties paid to artists and producers when a recording is sold, which can be downloaded (on a platform like iTunes), as well as physical copies being sold (such as a C.D.).
     
  • Streaming: Royalties paid to artists and producers when a recording is streamed “on-demand” (like Spotify or Apple Music for example).
     
  • Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.

A NOTE ABOUT COPYRIGHT LENGTH

“Diamonds & Rust” was released in 1975. According to U.S. copyright law, the copyright is valid for 95 years from release. That means that the copyright for “Diamonds & Rust” will be valid through 2070. The investment term is listed as “at least 49 years” because there are additional works in this catalog that were released after 1975, which will all have a longer period of protection.

WHAT IS BEING SOLD?

The Seller's interest in all sound recording royalties (except for non-interactive digital performance royalties distributed by SoundExchange) attributable to the sound recordings listed in the Track List noted above. 

About the Royalty Distributor

Universal Music Group is an American global music corporation that is a subsidiary of the French media conglomerate Vivendi. UMG's global corporate headquarters are located in Santa Monica, California, and UMG owns and operates a broad array of businesses in more than 60 countries. It is considered one of the "Big Three" record labels, along with Sony Music and Warner Music Group.

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