"Juju On That Beat" — Artist Royalties

This single-song listing features streaming-driven, sound recording royalties for a double-Platinum viral hit. 

 

$86,750

closing price

Auction Closed

Top Bid: Anastasia W

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: $50,000
Bidding Increment: $750
Closing Price: $86,750
End Date: Aug 31, 2020, 1:01 PM MDT
Dollar Age:

3.90 Years

Last 12 Months' Royalties: $15,357
Investment Term: Life of author + 70 years
Distributors: Warner Music Group
Rights Included:

Sales, Streaming, Sync

Interests Included:

Artist (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): September 30, 2020
Distribution Frequency: Biannually
Buyer Fees:

1% of closing price or $500 (whichever is greater)‡§

Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.

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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/Commercial Placements, Samples, etc.
Distributors: Warner Music Group

Description

At stake in this auction are the artist royalties generated by “Juju On That Beat” from Zay Hilfigerrr & Zayion McCall. Recently, we listed the songwriter’s share of public performance royalties for this single — that popular offering can be found here

As the winning bidder, you’ll collect sound recording earnings for the lifetime of the copyright on this single. 

LISTING HIGHLIGHTS:

  • Life of Rights investment term
  • Valuable sound recording royalties, driven by streaming 

FINANCIAL HIGHLIGHTS:

Streaming (both ad-supported and subscription) drove 93% of gross earnings in the last 12 months. YouTube is the top streaming platform with 32% of the song’s gross returns for the last year.

ABOUT THE CATALOG: 

The hit song “Juju On That Beat” was released in 2016 by hip-hop duo Zay Hilfigerrr and Zayion McCall. The track was initially released on the mixtape Why So Serious? and then went on to become a viral dance challenge.

The entire track is a freestyle over the beat of 2004’s "Knuck If You Buck" by Atlanta hip-hop group Crime Mob featuring Lil' Scrappy. 

“Juju On That Beat” was certified double-Platinum and reached No. 3 on Billboard’s Hot R&B/Hip-Hop Songs charts. The track also cracked into the mainstream Hot 100 at No. 3. To date, the single has over 204+ million spins on Spotify while the video has an impressive 433+ million views on YouTube. 

Key Drivers

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.

Record labels see significant benefits as a result. According to an analysis of publicly-stated financial results by Music Business Worldwide, labels Universal, Sony, and Warner jointly turned over just over $6.93 billion globally last year from streaming income alone.

You can see this trend reflected in the catalog up for bid. This is good news for you as the investor, as it follows the industry macro trend of rising streaming royalties for labels.

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.

Hip-Hop & Streaming. Hip-Hop/Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to BuzzAngle's 2019 Year End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Six out of the top 10 streamed songs were hip-hop/rap and 52 out of the top 100 most streamed songs were hip-hop/rap.

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

Warner Bros. Records Inc. is one of the top major record labels in the world. They are the foundation label of the present-day Warner Music Group (WMG). Warner Bros. Records is home to a wide array of legendary artists with a rich catalog of contemporary hits and influential standards. With a commitment to artist-friendly policies and long-range career development, they continue to maintain a strong share of the label market around the world.

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