No. 1 Christian Hit “What Faith Can Do”

Invest in publishing royalties produced by the popular Christian song “What Faith Can Do,” from Christian rock band Kutless. 

$31,300

closing price

Auction Closed

Top Bid: David D

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: $14,500
Bidding Increment: $300
Closing Price: $31,300
End Date: May 23, 2018, 3:07 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $3,346
Royalty Type: Public Performance, Mechanical, Sync
First Payment: September 2018
Buyer Fees: None

Description

This auction features the No. 1 Christian hit song "What Faith Can Do," with earnings from multiple income sources. The song earns performance, mechanical, and TV & film synchronization, with mechanical royalties as the leading income source with 42% of the earnings in the last year.

When a song is streamed on-demand, it counts as both a public performance and a “mini-purchase," known as streaming mechanical. This means "What Faith Can Do" earns a public performance royalty and a streaming mechanical royalty at the same time. As the winner of this auction, you will collect two payments for one use of the song.

The song was recorded by the Christian rock band Kutless and released as a single in 2009. "What Faith Can Do" became a big radio success, spending eight weeks at No. 1 on Billboard’s Hot Christian Songs, as well as No. 1 on the Christian Airplay charts. The video has over eight million views on YouTube and the song won BMI's Song of the Year in 2011.

"What Faith Can Do" is off Kutless’ album It Is Well, which debuted at No. 2 on Billboard's Hot Christian Albums and No. 42 on the mainstream Top 200. The track was also featured on the Gold-certified WOW Hits 2011 compilation album, in addition to WOW #1’s from 2011. What’s exciting is that if "What Faith Can Do" is re-recorded and released by another artist or released on another compilation album, you’ll collect those royalties as well.

Key Drivers

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

  • Mechanical: Royalties paid to songwriters and publishers when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals).

  • 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 use of a song as background music for a movie, TV show, or commercial.

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 song earns primarily from royalties from mechanical royalties — 42% in the last 12 months. What's more is that these royalties are up 33% over the previous year. As the winner of this auction, you will benefit from the mechanical rate increase as you collect mechanical royalties for "What Faith Can Do."

What is being sold?

100% of the seller's interest in the publisher's share of royalties attributable to the musical composition "What Faith Can Do." View the 'Financials' tab for the complete track list.

How does this asset make money?

Every time "What Faith Can Do" is streamed online, played on YouTube, recorded by another artist or included on a compilation album, you'll earn royalties. 

Warner/Chappell pays twice a year. Royalty Exchange will collect the royalties from Warner/Chappell and disburse them to the winning bidder. The next payment will be in September 2018, paid to you by Royalty Exchange in October 2018.

Unless the buyer opts out of the opportunity, this listing will automatically be relisted as a "Buy It Now" sale at a premium over the closing price. The relisted asset will remain live until it is purchased, or until its first royalty distribution. This gives the winning bidder the chance to earn an immediate return on the asset while awaiting the first royalty payment.

  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: Warner/Chappell Music

About the Royalty Distributor

Warner/Chappell Music, the global music publishing company of Warner Music Group, is home to a wide array of legendary songwriters and a rich catalog of contemporary hits and influential standards. With offices in more than 40 countries, Warner/Chappell provides deep expertise across a range of creative services and the most innovative opportunities for songwriters and copyright holders.

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