Multiple Royalty Streams: International Pop

Invest in this asset that earns both songwriter and publishing royalties generated by a catalog of global pop hits, including a No. 1 dance track and No. 1 Latin hit!

$76,000

closing price

Auction Closed

Top Bid: Tim G

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: $40,000
Bidding Increment: $1,000
Closing Price: $76,000
End Date: Jul 05, 2018, 3:34 PM MDT
Last 12 Months' Royalties:

$11,042

Investment Term:

BMI: Life of author + 70 years 
Sony/ATV: At least 16 years (See note below)

Distributors:

BMI & Sony/ATV

Rights Included:

Public Performance, Mechanical, Sync

Interests Included:

Songwriter & Publisher 

Territory:

World

Track List:

BMI & Sony/ATV

First Distribution: September 14, 2018
Distribution Frequency:

BMI: Quarterly & Sony/ATV: Bi-Annually 

Relist-Eligible? Yes
Buyer Fees:

$500

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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, Sony/ATV

Description

This pop catalog features songs from international pop stars including Grammy-winning, Puerto Rican duo Wisin & Yandel (featuring Jennifer Lopez), as well as a No. 1 hit from Australian songstress Havana Brown, and more. Earnings for this asset are generated from both songwriter and publishing royalty streams, which include public performance, mechanical, and synchronization.

The highlight of the catalog is the title “Follow The Leader” performed Wisin & Yandel featuring Jennifer Lopez. The Gold-certified track brings in 63% of both publishing and songwriter earnings to date. Released in 2012, “Follow The Leader” hit No. 1 Billboard’s Hot Latin Songs and charted in eight other countries. To date, the song’s video has over 513 million views on YouTube.

Also included in this collection is “Warrior” from Australian vocalist Havana Brown. The track peaked at No. 1 on Billboard’s Hot Dance Club Songs, No. 11 on ARIA Singles Chart, and went double Platinum in Australia. “Warrior” accounts for 20% of this asset’s historic earnings.

Other included titles with international appeal are Italian Alessandra Amoroso’s “Da Casa Mia,” “Feel The Love” from Australian DJ Tigerlily, and a track from Korean girl-group Page Two.

Key Drivers

Income Mix. This auction is for three different royalty streams. This means the winner of this auction can receive income in multiple ways:

  • Mechanical: Royalties paid to songwriters and artists when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).

  • Performance: Royalties 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 songwriters and publishers for the licensing of a song in background music for a movie, TV show, or commercial.

This diverse income mix is important in today's world of streaming music consumption. When a song is streamed on-demand (on Spotify), it counts as both a public performance and a “mini-purchase.”

Take for example Wisin & Yandel’s “Follow The Leader.” The song earns a public performance royalty (paid by BMI) from whenever the song is streamed on Spotify, but it also earns a streaming mechanical royalty (a “mini-purchase”) at the same time. This means the winner of this auction will collect two payments for one use of the song. You’ll also collect any upfront sync fees for any of the Sony/ATV catalog songs used in TV/Film or commercials.

Mechanical Rates. 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. Historically, this catalog has earned the majority of its royalties from mechanical royalties. As the winner of this auction, you will benefit from the mechanical rate increase as you collect mechanical royalties from the publishing side.

A NOTE ABOUT INVESTMENT TERM

The investment term for a group of songs in the Sony/ATV catalog is “at least 16 years” because Sony/ATV’s retention rights for these songs expire after 2034. After 2034, the copyrights will revert back to the seller. To view a list of songs in this group, click here (also noted in Track List in Overview box above).

Please Note: all other songs in the Sony/ATV catalog and all songs in the ASCAP catalog have an investment term of life of the copyright, which is life of author + 70 years.

About the Royalty Distributor

Broadcast Music, Inc. (BMI) is one of four United States performing rights organizations, along with ASCAP, SESAC & Global Music Rights. It collects license fees from music users on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. For more information on BMI’s distribution schedule, click here.

Sony/ATV Music Publishing is the world’s largest music publishing company with a network of 37 offices in 29 cities and 22 countries across the globe. Headquartered in New York, the company was set up in 1995 as a joint venture between Sony Corporation and Michael Jackson’s publishing company, and now owns or administers more than 3 million copyrights. It became a solely-owned Sony company in 2016. Since 2012 Sony/ATV has administered EMI Music Publishing, further extending the reach of the songs, songwriters, and artists it represents.

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