Pop & Hip-Hop Publishing Royalties

Earn from multiple income sources with a global catalog featuring the hit single “Heatwave” from popular DJ Robin Schulz.

$104,000

closing price

Auction Closed

Top Bid: Bulldog C

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: $100,000
Bidding Increment: $4,000
Closing Price: $104,000
End Date: Feb 28, 2019, 3:00 PM MST
Last 12 Months' Royalties: $40,555
Investment Term: Life of author + 70 years
Distributors: Kobalt
Rights Included:

Mechanical, Public Performance, Sync

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution:

March 1, 2019

Distribution Frequency:

Bi-annually 

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: Kobalt

Description

As the winner of this auction, you will collect the publisher's share of sync, mechanical, and public performance royalties for this global catalog.

The largest income source for this offering is mechanical royalties — publishing royalties earned when music is either physically sold (CDs), downloaded (iTunes), or streamed online (Spotify). These mechanical royalties make up 63% of earnings for this catalog in the last year.

The top-earning song “Heatwave” is from world-renowned German DJ Robin Schulz and features American hip-hop artist Akon. “Heatwave” charted successfully around the globe and became Gold-certified in both Germany and Italy. As a result, international earnings are strong for this track. The house/pop anthem contributes 67% of earnings in the last 12 months.

Other notable tracks include “Blow It In The Wind” from Grammy-winner Chris Brown (19% of last year's earnings) and an R&B hit from vocalist Tank “You Don’t Know,” which is demonstrating steady year-over-year income. Not to be overlooked are 2014 titles from Trey Songz — “Smartphones” and “Loving You” — as well as “Better Half” from Boyz II Men.

Finally, thanks to this catalog’s international appeal, you’ll notice a spike in earnings in H2-2017. This is a result of international royalty distributions (mechanical and public performance) that lagged behind domestic royalty collections. As the winner of this auction, you’ll be entitled to any publishing royalties paid by Kobalt from all foreign (and domestic) sources, regardless of when they were earned going forward.

Key Drivers

Song Age. Industrywide, “Deep Catalog” (music released more than 3 years ago) represents 50% of music streamed today. Impressively, this collection of songs aligns with this trend. The highest-earning track in the catalog — “Heatwave” — was released 3+ years ago. The song continues to generate royalties, especially abroad. Other top songs have release dates dating back to 2010. A catalog containing more mature works is something that is worth noting as an investor.

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 earns primarily from royalties from mechanical royalties — 63% in the last 12 months. As the winner of this auction, you will benefit from the mechanical rate increase as you collect mechanical royalties.

Income Mix. The winner of this auction can receive income from various royalty streams:

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

  • Performance: Royalties paid to songwriters 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 music for a movie, TV show, or commercial.

Matching Right

This seller's publisher holds a matching right on any sale of public performance income in this catalog. The publisher will have the opportunity to match the winning bid after this auction closes. If you are the winning bidder, the publisher must first decline their matching right before you will be able to complete your purchase. This process is generally completed within 5–10 business days.

IMPORtant note about the distributors 

The prior administrator of this catalog was Warner/Chappell Music and the data presented in the financials are from Warner/Chappell. Kobalt Music Group recently acquired the administration of this collection of songs. Going forward, Kobalt will be collecting and disbursing royalties from this catalog and the winning bidder will receive payments from Kobalt. 

About the Royalty Distributor

Kobalt Music Group is an independent rights management and publishing company, acting primarily as an administrative publishing company, not owning any copyrights. Kobalt is trusted by some of the world’s greatest artists, and represents more than 40% of the top 100 songs and albums in the U.S. and U.K.

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