Licensing Revenue: Premium Stock Video Footage
Collect 33% of licensing revenue from high-quality stock video footage that has been used in Academy Award-winning films and Emmy-winning TV shows.
Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the video footage associated with this listing.
| Starting Price: | $170,000 |
| Bidding Increment: | $5,000 |
| Closing Price: | $175,000 |
| End Date: | Jun 22, 2017, 3:01 PM MDT |
| Investment Term: | Life of author + 70 years |
| Last 12 Months' Royalties: | $41,004 |
| Royalty Type: | Stock Video Licensing |
| First Payment: | July 2017 |
| 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, this catalog generated $41,004 in royalties.
Up for auction is 33% of all licensing revenue attributable to the seller's catalog of stock video footage. The seller previously sold a portion of this licensing revenue on Royalty Exchange so this is your second chance to get in on a growing market!
This catalog consists of breathtaking aerial shots of nature, landscape, skyline, and disaster scenes. 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 often do. In fact, stock video distributor VideoBlocks (one of the distributors of this catalog) has seen an explosion in demand for it — searches of VideoBlocks' database related to aerial footage increased 712% in 2016 over 2015.
Key Drivers
1) 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) Another benefit of this catalog is that its revenues are widely distributed amongst its thousands of different videos. No single video makes up a significant portion of its earnings, so it includes built-in diversification. Also, the income of this catalog currently comes from seven different distributors. The owner retains 34% and will continue to seek out growing licensing opportunities. This means you aren't tied to the success of a single distributor.
What is being sold?
33% 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, & 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 33% 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.
The seller or an entity that purchases the seller's company or the catalog will have the right to repurchase the winning bidder's 33% for a price of 150% of the winning bid.
In a previous auction on Royalty Exchange, the seller sold 33% of its licensing revenue and retained 67%. After auctioning this second 33%, the seller will retain the copyrights and licensing rights for this catalog, along with the remaining 34% share of the licensing revenue. The winner of the previous auction has a right of first refusal on any offer for the copyrights in the catalog or any portion of the seller's remaining 34% of the royalties. The winner of this auction will have a right of second refusal on those same remaining rights.
About the Royalty Distributor
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.