Long-Standing, Christian Worship Catalog

Here's an opportunity to earn royalties from time-honored, Christian worship music, highlighted by the popular title "Alpha And Omega."

$37,500

closing price

Auction Closed

Top Bid: Zeke 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: $19,000
Bidding Increment: $500
Closing Price: $37,500
End Date: Mar 28, 2018, 3:00 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $4,369
Royalty Type: Public Performance, Mechanical, Sync, Print
First Payment: May 2018
Buyer Fees: $500 BMI Payee Account Fee*

*BMI charges a one-time fee of $500 to open a new payee account, which will be debited from the payee's first royalty distribution. Once opened, multiple royalty streams can be routed to the buyer's payee account. If you already have a BMI payee account, there is no fee.

Description

This catalog features Christian worship music with an established following -- anchored by the well-known praise song, “Alpha And Omega.” In the last 12 months, this asset has produced $4,369 in royalties.

As the winning bidder, you’ll collect both publishing and songwriter royalties for two different catalogs, both of which contain “Alpha And Omega.” Written over 30 years ago, “Alpha And Omega” is the foundation of this offering bringing in over 82% of earnings from both catalogs combined.

What’s interesting is “Alpha And Omega” has become an integral part of the award-winning singer/songwriter Bill Gaither’s gospel franchise. "Alpha And Omega" is known as the Gaither Vocal Band’s signature song and widely considered a “Gaither classic.” The song has been included in multiple Gaither CD releases, DVDs, and countless live performances. 

If you win this auction, you’ll earn mechanical royalties from “Alpha And Omega” -- paid to the songwriter when music is either physically sold (CDs), downloaded from iTunes or streamed on Spotify. While this asset also includes performance, sync, and other royalty streams (detailed below), the majority of the publishing royalties for “Alpha And Omega” are generated by mechanical royalties at 49% historically.

This is notable for two reasons. First, “Alpha And Omega” has been recorded on nine major label releases, dating back to 1984. Most recently, it was recorded by Guy Penrod on his 2017 album Classics. The song continues to be in demand for Christian artists, decades after it was originally written! Second, the U.S. Copyright Royalty Board recently raised the rates digital music services must pay for mechanical royalties… by nearly 44% over the next five years.

Also included in this offering is the title “Heart Of Worship.” Written in the early 1990s, the song accounts for nearly a quarter of the publishing royalties in the last 12 months.

Key Drivers

Longevity. “Alpha And Omega” was written more than 30 years ago and has been collecting royalties for nearly as long. This demonstrates the longevity and impact the song has had on Christian music and worshipers worldwide. The song has been recorded by the Gaither Vocal Band and other Christian artists. Moreover, there are over 145 YouTube videos and covers of "Alpha and Omega" from all over the world in various languages. Some of these YouTube videos are also monetized with ads. Its track record of continued use in live performances, recordings, and compilation albums, is worth noting.

Income Type. This catalog earns money from five different royalty streams. This means the winner of this auction can receive income in multiple ways:

  • Mechanical: Royalties paid to publishers when music is sold (like digital downloads), and also when music is streamed on-demand, like on Spotify (streaming mechanicals).

  • Performance: Royalties paid when music is performed publicly. Music played over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.

  • Synchronization: Royalties paid to publishers for use of music in a movie, TV show, or commercial.

  • Christian Copyright Licensing International (CCLI): sells direct licenses to churches to streamline copyright issues for various religious works.

  • Print: Royalties paid when music is transcribed into print, like sheet music, and then distributed.

Historically, “Alpha And Omega” earns primarily from mechanical royalties at 49%. As the winning bidder, you’ll collect mechanical royalties for the song every time it’s sold (either digitally or physically) or streamed. You will collect any upfront sync fees going forward for these songs' use in commercials, TV shows, or movies.

On the publishing side, you’ll notice 17% royalties in the last 12 months came from CCLI, Christian Copyright Licensing International. CCLI is a licensing organization that provides churches with solutions to complex copyright issues. They ensure that artists, labels, and studios receive fair compensation for their work. Churches around the world use thousands of songs each year during worship services. They need permission from the copyright owners of those songs to record them, make arrangements, duplicate copies, project lyrics on screen, etc. Through CCLI, a church can obtain a single annual license that covers almost any song for just about any type of use they can imagine. Both “Alpha And Omega” and “Heart Of Worship” are available through CCLI.

Want to learn more about the different royalty types? View our guides on mechanical and performance royalties here and sync royalties here.

What is being sold?

100% of the seller's interest in the songwriter's share of public performance royalties attributable to select musical works in the seller's catalog and 100% of the seller's interest in the publisher's share of royalties attributable to select musical works in the seller's catalog. View the 'Financials' tab for complete track lists.

How does this asset make money?

On the publisher side, Earnings include public performance, mechanical, sync, and print royalties. This means every time “Alpha and Omega” or any song in this catalog, is recorded by another artist or included in a compilation album, you’ll earn royalties. Every time one of these songs is streamed online or played on YouTube, you'll earn royalties. And, every time the sheet music for one of these songs is included in a hymnal or song book, you'll earn royalties. Royalties are collected worldwide through distribution by Capitol CMG and paid on a quarterly basis. The winning bidder's first payment will be made in May 2018.

On the songwriter’s side, every time “Alpha and Omega” or any song in this catalog, is played on the radio, YouTube or Sirius XM or any other type of public performance, you earn royalties. BMI makes payments quarterly and the first distribution you will receive is June 2018.

What rights are included?

 

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive 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 & Performances, Samples, etc.
Distributors: BMI, Capitol CMG

About the Royalty Distributor

BMI represents more than 10.5 million musical works created and owned by more than 700,000 songwriters, composers and music publishers. BMI supports businesses and organizations that play music publicly by offering blanket music licenses that permit them to play more than 10.5 million musical works.

Capitol CMG Publishing represents more than 100,000 songs, hundreds of copyright catalogs, and some of Christian music's top songwriters. The publishing division has received multiple Christian Music Publisher of the Year honors from Billboard Magazine, ASCAP and BMI.

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