Licensing Revenue: Premium Stock Video Footage

Collect 20% of licensing revenue from high-quality stock video footage that has been used in Academy Award-winning films and Emmy-winning TV shows.

$113,500

closing price

Auction Closed

Top Bid: Andrew A

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: $83,500
Bidding Increment: $2,000
Closing Price: $113,500
End Date: Mar 30, 2018, 3:18 PM MDT
Investment Term: Life of author + 70 years
20% of Last 12 Months' Royalties: $20,865
Royalty Type: Stock Video Licensing
First Payment: July 2018
Buyer Fees: None

Description

Invest in the growing market for video production by earning royalties from a catalog of exclusive, premium-quality stock video footage. Videos in this catalog have been used in Academy Award-winning films, Emmy-winning TV shows, and even in commercials that have aired during a certain “Big Game” at the end of the pro football season. In the last 12 months, 20% of this catalog generated $20,865.

Up for auction is 20% of all licensing revenue attributable to the seller's catalog of stock video footage. Stock footage is a useful way for media makers to save time and money they would otherwise spend creating content themselves. The videos in this auction are available from seven different distributors... and you'll earn royalties every time one is licensed for use. The seller previously sold an interest in this same licensing revenue on Royalty Exchange, so this is another chance to get in on a growing market!

This catalog consists of breathtaking aerial shots of nature, landscape, skyline, and even disaster scenes, including historical Hurricane Katrina footage which can never be re-created. Take a look at the “Media” tab to see a sample of the beautiful footage. This type of footage has a sort of “evergreen” quality — it won't go out of style, unlike fashion or pop culture trends can.

Key Drivers

1) Increase in Video Consumption. Video consumption has skyrocketed in recent years. YouTube reports mobile video consumption grows 100% every year, and video is projected to account for more than 80% of all web traffic by 2019. Often, marketers and media creators look to stock video footage to supplement their content.

2) Diversification. Another benefit of this catalog is that revenues are widely distributed amongst thousands of different videos. No single video makes up a significant portion of earnings, so it has built-in diversification. Also, the income of this catalog currently comes from seven different distributors. This means you aren't tied to the success of a single one.

What is being sold?

20% of all licensing revenue attributable to the seller's catalog of stock video footage. You can view the metadata for the catalog in the “Financials” tab, and check out video clips on the seller's website.

How does this asset make money?

The seller has licensed the catalog to several major online distributors of stock video footage on a non-exclusive basis. Current distributors include Shutterstock, Pond5, Getty, Dissolve, VideoBlocks, Fotolia, and Nimia. The distributors sell licenses to their users for use of the videos and pay the seller a percentage of the license sale price. You'll earn royalties every time one of the videos in the catalog is licensed for use by any of the current distributors or any distributor added in the future.

What rights are included?

The winning bidder will be entitled to 20% of all licensing revenue generated by the seller's catalog of stock video footage. The seller will maintain the copyrights and the exclusive right to further license and monetize the catalog.

In two previous auctions on Royalty Exchange, the seller sold a total of 66% of its licensing revenue and retained 34%. After auctioning this additional 20%, the seller will retain the copyrights and licensing rights for this catalog, along with the remaining 14% share of the licensing revenue.

IMPORTANT NOTES:

1) Right of First Refusal. It’s important to know that the winners of the two previous auctions have a right of refusal on this 20% portion of the licensing revenue. They will have the opportunity to exercise it after this auction closes, in the amount of the final winning bid price. This means that if you are the winning bidder, the two previous buyers must first decline their matching right before you will be able to complete your purchase.

Similarly, if you win this auction you will have a right of third refusal on the remaining 14% share of licensing revenue as well as the copyrights for the catalog.

2) Buyback Option. VideoFort (or any entity that purchases VideoFort or the catalog) has the right to repurchase this 20% share from the winner of this auction at any time for a price of 150% of the winning bid.

about the royalty distributors

VideoFort’s mission is to provide film and video makers with Quality Content and Creative Freedom. VideoFort is one of the world’s largest manufacturers and suppliers of HD and Ultra HD Stock Footage. VideoFort’s content collection includes some of the world’s most popular nature, aerial, and disaster footage. By using stock footage created by VideoFort, film and video makers can add more entertainment value to their projects, while spending less time and money on productions.

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