Kacey Musgraves' “Apologize”

Collect sound recording royalties from Grammy-winning country artist Kacey Musgraves' acoustic cover of “Apologize”. 

$225,000

closing price

Auction Closed

Top Bid: S B

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: $225,000
Bidding Increment: $5,000
Closing Price: $225,000
End Date: Feb 28, 2017, 3:00 PM MST
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: TuneCore: $52,210 SoundExchange: $3,389
Royalty Type: Performance, Streaming & Sales
First Payment: March 2017
Fees: None

Description

This is the chance to invest in royalties from “Apologize” by Grammy award-winning country artist, Kacey Musgraves. Just over a week ago, this recording became Kacey's number one song streamed on Spotify. Kacey has over 1.2 million Spotify listeners a month and over 90% of this catalog's revenue comes from Spotify. Now you can earn money every time “Apologize” is streamed or downloaded.

Up for auction is the seller's interest in the sound recording royalties for “Apologize (Acoustic Version)" distributed by TuneCore and SoundExchange. In the last 12 months, this recording earned $52,210 in royalties from TuneCore and $3,389 from SoundExchange.

In 2008, Kacey recorded her cover of “Apologize” in a recording session with Triple Pop, the first record label to discover her. In 2013 the song was released digitally on the two song EP “Apologize-See You Again.” This song charted in Billboard’s Hot Singles chart at #23 in 2014.

Kacey has won and been a nominee for multiple prestigious awards, including:

  • 2014 Grammy Awards: Won “Best Country Album” and “Best Country Song of the Year”
  • Academy of Country Music: Won Album of the Year
  • American Country Music Awards: Nominee for “Video of the Year” as both artist and producer, and nominee “Female Vocalist of the Year” alongside Miranda Lambert, Martina McBride, Taylor Swift and Carrie Underwood.

KEYS TO GROWTH

The growth in income from "Apologize" comes from two main sources:

1) Kacey's continued growth in popularity on the country scene. At the age of 28, she still has several years to make a difference as a cross-over country star. She's signed with the largest label in recent years and is making tour appearances with country stars such as George Strait.

2) Spotify's continued growth in the streaming market. Spotify is the dominant force in streaming services. In the past year, it has grown paid subscribers to 40 million users, or up by 90%. The service is available in 60 countries and has over 100 million monthly users. Their market share of streaming subscribers is over 40%. The growth and reach of Spotify is a huge leverage point for this royalty stream.

What is being sold?

Two different royalty streams are included:

(1) 100% of the sound recording royalties generated by streams and downloads of “Apologize (Acoustic Version)" from TuneCore digital distribution. Sources include Spotify, Pandora, Amazon Music, Amazon on Demand, Google Play, Amazon Cloud, Rhapsody, Slacker, eMusic, MediaNet, 7Digital).

Please note: the seller has a separate distribution agreement with iTunes. Royalties from iTunes are not included in this sale.  

(2) 100% of the seller's interest in the rights owner share of non-interactive digital performance royalties attributable to “Apologize (Acoustic Version)," currently administered by SoundExchange.

Non-interactive services are very generally defined as those in which the user experience mimics a radio broadcast. That is, the users may not choose the specific track or artist they wish to hear but are provided a pre-programmed or semi-random combination of tracks, the specific selection, and order of which remain unknown to the listener (i.e. no pre-published playlist). Examples: Pandora, Sirius XM Radio, iHeartRadio, etc.

The seller will retain ownership of the master and any unreleased versions.

How does this asset make money?

Every time “Apologize (Acoustic Version)" is streamed or downloaded on Spotify, Amazon Music, Google Play, Amazon Cloud, Rhapsody, Pandora, etc. you earn money. Non-interactive royalties will be distributed quarterly by SoundExhange, and TuneCore royalties will be distributed quarterly by Triple Pop, the record label that owns the master recording.

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. Interactive and Non-Interactive Internet Streaming, Satellite Radio, Digital Downloads
Distributed by: SoundExchange, TuneCore

About the Royalty Distributors

TuneCore

TuneCore believes all artists, from emerging to established, should have affordable and equal access to all channels of music distribution. When you use TuneCore Music Distribution, you keep 100% of your sales revenue without giving up any of your master recording ownership, copyrights, and merchandise rights.
TuneCore Music Publishing Administration licenses and registers your compositions globally and helps you collect the royalties that you’ve earned.

SoundExchange

SoundExchange is an independent nonprofit collective management organization that collects and distributes digital performance royalties to featured artists and copyright holders. Since inception, they have paid out more than $4 billion in royalties. In 2015 alone, SoundExchange paid out $803 million in digital performance royalties – a record-setting annual distribution for the organization.

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