N'Vision Entertainment: Sound Recording Royalties

Collect sound recording royalties from sales and streaming of a catalog of 2,000+ traditional and inspirational gospel recordings.

$190,000

closing price

Auction Closed

Top Bid: Nicholas B

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: $140,000
Bidding Increment: $5,000
Closing Price: $190,000
End Date: Aug 29, 2017, 2:00 PM MDT
Investment Term: Life of author + 70 years
50% of Last 12 Months' Royalties: $45,785
Royalty Type: Sales and Streaming
First Payment: September 2017
Fees: 5% Administration Fee

*For royalties administered by Royalty Exchange, a 5% administration fee will be deducted from each payment.

Description

This is an opportunity to collect 50% of the income generated by the sound recording copyrights from thousands of traditional and inspirational gospel songs. Up for auction is the seller's interest in the N'Vision Entertainment catalog, a large collection of over 2,000 recordings. 50% of this catalog generated $45,785 over the last 12 months.

This unique catalog collects royalties in multiple ways. The income generated comes from three different sources (one of which is a unique royalty stream not correlated to radio or streaming play):

1) Non-interactive Digital Performance Royalties:
Non-interactive digital services are very generally defined as those in which the user experience mimics a radio broadcast. So users may not choose the specific track or artist they wish to hear, but are provided a pre-programmed or semi-random combination of tracks, the specific selection and order of which remain unknown to the listener (i.e. no pre-published playlist). These royalties are currently distributed through SoundExchange from sources like Pandora, SiriusXM, iHeartRadio.com, etc.

2) Digital Distribution Royalties:
Anytime one of these songs is streamed on demand or digitally downloaded or sold, this catalog earns royalties. Digital distribution royalties are currently collected and paid through the Orchard from sources like iTunes, Spotify, Google Play, Amazon, etc.

3) Physical Sales
This music is available in hundreds of Christian stores through a disc-on-demand platform, myMEDIA BurnBar, from Integra Interactive. Every time one of these recordings is sold through this platform, sound recording royalties are generated.

Royalty Exchange will administer royalties from the Orchard and SoundExchange to the buyer on a quarterly basis and the first payment will be in November 2017. Integra will pay the buyer directly and will administer payments monthly starting September 2017.
 

Key Drivers

1) Integra Interactive
Integra Interactive adds a unique and lucrative royalty that is not correlated to radio or streaming play. Royalties from Integra are the largest source of earnings for this catalog, making up 57%. Their disc-on-demand platform is an incredibly popular service for Christian music fans. Customers can explore and discover songs they would like to purchase on these kiosks, allowing them to pick tracks to burn onto a custom CD right there in the store.

2) Growth of Digital Revenues
Digital and streaming royalties are growing worldwide and 43% of this catalog's income comes from digital revenues from streaming and downloads. Every time one of these songs is streamed or downloaded from sources like iTunes, Spotify, Pandora, etc. you will earn money.

What is being sold?

50% of the digital distribution royalties, non-interactive digital performance royalties, and on-demand distribution royalties attributable to the sound recordings in the N'Vision catalog.

How does this asset make money?

Every time one of these recordings is streamed through non-interactive services, streamed on demand, digitally downloaded, or sold through Integra Interactive's MyMEDIA Burnbar, you will earn money. Royalties will be distributed by Integra Interactive monthly and Royalty Exchange quarterly. The first payment you will receive from Integra will be in September 2017 and the first payment distributed from Royalty Exchange will be in November 2017.

What rights are included?

About the Royalty Distributor

Royalty Exchange will administer royalties from the Orchard and SoundExchange to the buyer on a quarterly basis. Integra will pay the buyer directly and will administer payments monthly.

The Orchard
A pioneering music, video, and film distribution company and top-ranked Multi Channel Network operating in more than 25 global markets. This digital music distributor comprises 12% of the average earnings for the N'Vision Entertainment catalog over the past 12 months.

SoundExchange
SoundExchange is the independent, nonprofit, collective management organization that collects and distributes digital performance royalties to featured artists and copyright holders.

Integra Interactive
Integra is one of the world's largest providers of in-store digital content burning kiosk applications. Developed in 2007 for the Christian retail store channel, myMEDIA BurnBar™ is a Disc-on-Demand platform. Integra's myMEDIA BurnBar kiosk burns all forms of content (for example, music CDs) on-demand. Nearly four million CDs and DVDs have been created. Every day hundreds of retail stores serve their customers by offering over 17,000 accompaniment track titles, 15,000 music albums, 170,000 songs, and 600 movies, music concerts, and kids’ videos.

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