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.
|End Date:||Mar 27, 2019, 3:00 PM MDT|
~ 25 Years
|Last 12 Months' Royalties:||
|Investment Term:||30 years*|
Universal Music Group
Sales, Streaming, Sync
March 31, 2019
* Please see the FAQ tab for more information on the 30-year investment term.
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What rights are included?
We recently closed an auction for a portion of this same catalog.
Now up for bid is a larger share of this exciting, time-honored catalog featuring consistent sound recording royalties from the massively popular mid-90’s rock group Live.
What’s remarkable about this asset is its longevity and consistency. The top-four earning tracks were released in 1994! Collectively, the catalog has a Dollar Age of ~25 Years. (Read more about Dollar Age and why it’s important here). What’s more, these are consistent earnings and, in many cases, growing.
The income for this offering is generated by five of Live’s studio albums and include worldwide hits like “Lightning Crashes,” “I Alone,” and “Lakini’s Juice,” among many others. (See below for a list of featured albums).
Acting as the catalog’s foundation is Live’s best-selling album to date, the 8x Platinum album Throwing Copper — and its associated singles. Released in 1994, the album hit No. 1 status on the Billboard 200 (among other international charts) and skyrocketed the band to worldwide fame.
Live’s most widely recognized song from the album is “Lightning Crashes.” The hit topped the 1994 Billboard Rock chart at No. 1 for ten consecutive weeks and brought in 30% of last year’s income for this collection. Royalties for “Lightning Crashes” are also growing — up over 40% last year compared to the previous time period. This increase is thanks to streaming platforms Spotify, Apple, Amazon, and Pandora.
Another compelling feature about this collection is that four of the five top-producing income sources are growing year-over-year. Subscriptions (paid Spotify or Pandora), programmed plays, and video streams royalties all increased in the last 12 months over the previous year at 61%, 28%, and 47%, respectively.
You’ll also notice a shift in earnings in the most recent year compared to historical income. Not surprisingly, the majority of this catalog’s income comes from subscriptions — 43% of last year’s earnings— while historically downloads brought in the most revenue with 37% of income to date. This means income is aligning with overall industry trends.
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. In the last year, 43% of royalties came from subscription streaming services. This is good news for you as the investor, as it follows the industry macro trend of rising label streaming royalties.
Catalog Music: Proven older hits, like that of this Live catalog, drive streaming activity. Based on the recent BuzzAngle Music report, half of the music streamed via services like Spotify is classified as Deep Catalog music or music released more than three years ago. While streaming platforms may be a great discovery vehicle for new music, their foundation remains seasoned hit songs like those included in this collection.
Continued Relevance: Live has sold over 22 million albums worldwide and touts a loyal international fanbase. Nearly 25 years after Throwing Copper was released, Live is still actively touring with dates through September 2019. The 2019 tour features a co-headlining leg with fellow 90s band Bush (performing in more than 45 North American venues), as well as a sold out, solo-headlining tour in Europe.
Tours give artists the chance to solidify their current fan base and expand their reach to new listeners. Live also released a new EP (titled Local 717) in fall 2018. While the new songs are not included in this auction, new releases can help boost an artist's back catalog. The release of new music can lead to discovery among first-time listeners, and re-engage existing fans.
- Mental Jewelry (1991)
- Throwing Copper (1994)
- Secret Samadhi (1997)
- The Distance To Here (1999)
- V (2001)
- Birds of Pray (2003)
- Awake: The Best of Live (2004)
About the Royalty Distributor
Universal Music Group is an American global music corporation that is a subsidiary of the French media conglomerate Vivendi. UMG's global corporate headquarters are located in Santa Monica, California, and UMG owns and operates a broad array of businesses in more than 60 countries.It is considered one of the "Big Three" record labels, along with Sony Music and Warner Music Group.