No. 1 Christian Song: “What Faith Can Do”
Up for bid are the public performance royalties generated by the No. 1 hit “What Faith Can Do,” from Christian rock band Kutless.
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The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.
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: | $19,500 |
| Bidding Increment: | $400 |
| Closing Price: | $21,500 |
| End Date: | Aug 07, 2018, 3:05 PM MDT |
| Last 12 Months' Royalties: | $3,777 |
| Investment Term: | 10 years* |
| Distributors: | ASCAP |
| Rights Included: | Public Performance |
| Interests Included: | Songwriter (U.S. Only) |
| Track List: | |
| First Distribution: | October 9, 2018 |
| Distribution Frequency: | Quarterly |
| Relist-Eligible? | No |
| Buyer Fees: | $500‡ |
* Please see the FAQ tab for more information on the 10-year investment term.
‡ Become a Royalty Exchange All Access Investor to waive auction fees and enjoy additional exclusive benefits.
What rights are included?
| Musical Composition | Sound Recording | |||||||
|---|---|---|---|---|---|---|---|---|
| Copyrights included? | No | — | ||||||
| Rights: |
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| Sources: | Internet Streaming, AM/FM & Satellite Radio, TV/Film/Commercial Performances, etc. | Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc. | ||||||
| Distributors: | ASCAP | — |
Description
This single-song auction features the No. 1 Christian hit "What Faith Can Do," from Christian rock band Kutless. We recently sold the publishing royalties for this song, and you can check that auction out here. Now up for auction are the songwriter public performance royalties.
Released 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 song still earns primarily from radio with 63% of income in the last year — nearly 10 years after its release! The video has over eight million views on YouTube and also won BMI's Song of the Year in 2011.
"What Faith Can Do" is off the 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.
Key Drivers
Income Sources. Radio earnings account for 90% of the song’s income to date. Although radio royalties are still being generated, they could eventually level off. Songs that experience significant radio play can often build a foundation for other types of income.
For instance... streaming. You'll notice there is a shift in income in the last 12 months when it comes to streaming. Historically, streaming brought in 7% of royalties. In the last 12 months, however, streaming accounted for 37% of royalties. What’s more is those streaming royalties are increasing — up 15% over the previous four quarters. So we're seeing as the radio royalties begin to slow down, other income sources (streaming) begin to increase.
About the Royalty Distributor
American Society of Composers, Authors and Publishers (ASCAP) is one of four United States performing rights organizations, along with BMI, 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 ASCAP’s distribution schedule, click here.