Pop Hits: Ariana Grande, Chris Brown, J.Lo

Growing royalties from some of the biggest names in pop music: Chris Brown, Meghan Trainor, Ariana Grande featuring Lil Wayne and Jennifer Lopez!

$71,000

closing price

Auction Closed

Top Bid: Mark G

Overview

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: $30,000
Bidding Increment: $1,000
Closing Price: $71,000
End Date: Sep 12, 2017, 2:00 PM MDT
Investment Term: Life of author + 70 years
75% of Last 12 Months' Royalties: $10,420
Royalty Type: Public Performance
First Payment: October 2017
Fees: $75 ASCAP Assignment Fee*

*A one-time ASCAP reassignment fee of $75 will be added to the final sale price on the invoice.

Description

These pop superstar royalties are growing significantly. The last four quarters have shown a 419% increase over the previous four quarters! Here's an opportunity to earn from some of the most recognizable artists in the music industry today. In the last 12 months, this collection of music has generated $10,420 in royalties.

Accounting for 37% of the catalog's income are nine tracks from pop princess Ariana Grande. Arguably the most notable title is “Let Me Love You” featuring hip-hop legend Lil Wayne. This track accounts for 17% of earnings to date.

Off her third studio album Dangerous Woman (released in May 2016), “Let Me Love You” hit No. 99 on the Billboard Hot 100. The album Dangerous Woman received a Grammy nomination for Best Pop Vocal Album, hit No. 11 on Rolling Stone’s 20 Best Pop Albums and No. 22 on Billboard’s 50 Best Albums of 2016. “Let Me Love You” has 92 million spins on Spotify and over 200 million YouTube views. Another title from the Dangerous Woman included in this catalog is “Leave Me Lonely” featuring Macy Gray.

Not to be forgotten are the two highest earning songs: the Chris Brown single, “Drunk Texting” and Meghan Trainor's “Better.” Between the two, they account for 36% and 24% of historic earnings respectively. “Drunk Texting” is seeing a solid growth rate from streaming earnings from Pandora, Spotify and Apple Music, along with live concerts. Trainor's “Better” featuring Yo Gotti was from her 2016 album Thank You. The song peaked at No. 27 on Billboard's Mainstream Top 40 and the album reached No. 3 on Billboard 200.

Finally, the catalog features “A.K.A” performed by Jennifer Lopez featuring T.I., off her 2014 eighth studio album of the same title A.K.A.

Key Drivers

1.) Streaming accounts for 45% of earnings and its income is on the rise, a staggering 325% over the last four quarters. Moreover, radio royalties (16% of earnings thus far) look to be just beginning, with a growth rate of 23,703%.

As we've said before songs that experience significant radio play often build a foundation for streaming and other types of income as the radio royalties begin to slow down. The fact that there is growth in radio, as well as the rise from streaming, is the best of both worlds with this catalog.

Recently, Goldman Sachs analyst Lisa Yang issued a report projecting recorded music revenues will more than double to $41 billion by 2030. More specific to this listing is the driving force behind that growth: streaming, which they estimate will drive upwards of $34 billion of total industry revenue. To read more about the rise in streaming royalties globally, click here to read our most recent blog post.

2.) The star power in this catalog is also a very appealing factor. Ariana Grande's recent emotional and triumphant performance at the "One Love Manchester" concert could certainly be of interest to an investor. As a rising artist with a growing fan base, her back catalog could experience reengaged fans as well as new listeners. Meghan Trainor won the Best New Artist Grammy in 2014 and her retro-style is gaining fans. Chris Brown has won over 80 awards including multiple American Music Awards, BET & Billboard awards and a Grammy. After almost 20 years in the industry, Jennifer Lopez became the first female recipient of the Billboard Icon Award, is currently performing at her Las Vegas residency show and just launched “World of Dance” on NBC.

What is being sold?

75% of the seller's interest in the songwriter's share of public performance royalties attributable to the seller's catalog of musical works administered by ASCAP. See the “Documents” tab for a full track list.

IMPORTANT NOTE: Possession of the songwriter’s portion of this asset must be taken via a trust, which is required due to ASCAP’s assignment policy. Please see the Post-Auction Process tab for further information.

How does this asset make money?

Every time “Drunk Texting” or any song in this catalog, is played on the Spotify, Apple Music or Pandora, or any other type of public performance, you earn royalties. ASCAP makes payments quarterly and the first distribution you will receive is October 2017.

What rights are included?

  Musical Composition Sound Recording
Copyright included: No
Rights:
Mechanical
Performance
Synch
Sales
Performance
Synch
Royalty 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.
Distributed by: ASCAP

About the Royalty Distributor

ASCAP is the American Society of Composers, Authors and Publishers. It is a membership association of more than 575,000 composers, songwriters, lyricists and music publishers of every kind of music. ASCAP also represents music creators worldwide through agreements with affiliated international societies.

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Financials

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Post-Auction Process

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