Producer Royalties — Christian Rock Catalog

A streaming-driven, 10-year-old catalog with No. 1 hits from popular Christian artists.

$50,100

closing price

Auction Closed

Top Bid: Jason R

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: $24,000
Bidding Increment: $300
Closing Price: $50,100
End Date: Oct 20, 2020, 1:19 PM MDT
Dollar Age: 10.26 Years
Last 12 Months' Royalties:

$6,256

Investment Term: Life of author + 70 years
Distributors:

Provident Label Group (A Division of Sony Music Entertainment)

Rights Included:

Sales, Streaming, Sync

Interests Included:

Producer (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): March 31, 2021
Distribution Frequency: Biannually
Buyer Fees:

1% of closing price or $500 (whichever is greater)‡§

Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.

§ 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:
Mechanical
Public Performance
Sync
Sales
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, Samples, etc.
Distributors: Provident Label Group (A Division of Sony Music Entertainment)

Description

Invest in sound recording royalties from a group of faith-based artists including Christian rock groups Tenth Avenue North and Building 429

The winning bidder will collect royalties generated from any sales, streaming, and sync fees for the sound recordings of all included singles and accompanying albums. Sales and streaming, in particular, pay a greater share of revenue to sound recording royalties over composition royalties. 

LISTING HIGHLIGHTS:

  • Life of Rights investment term
  • Over 10-year Dollar Age 
  • Valuable sound recording royalties

FINANCIAL HIGHLIGHTS:

Streaming drives earnings for this catalog with 77% of royalties in the last 12 months. The source category labeled “Digital/Other,”—which includes various digital earnings—brought in another 21% of last year’s returns and showed significant growth year-over-year. 

Royalties are fairly evenly distributed amongst the catalog’s songs, with the top single “You Are More,” accounting for just 19% of last year’s income. This means the catalog’s earnings are not tied to the success of a single track, which provides built-in diversification.

ABOUT THE CATALOG: 

This catalog contains music primarily from two Christian rock bands: Tenth Avenue North and Building 429.  

The top-earning song is Tenth Avenue North’s “You Are More” off the No.1 album The Light Meets the Dark (2010). “You Are More” was very successful — reaching No. 1 on four Billboard charts and earning Gold certification. The video for the song also won Short Form Music Video of the Year at the 43rd GMA Dove Awards. 

Right behind is “Where I Belong” from Building 429’s album Listen to the Sound (2011). “Where I Belong” reached No. 1 on three Billboard Christian charts, was named Billboard’s Christian Song of the Year in 2013, and was certified Gold. 

Other top singles from Tenth Avenue North include:

  • “By Your Side” (2008)
  • “Worn” (2010)
  • “Healing Begins” (2010)

Key Drivers

Dollar Age. This catalog has a Dollar Age of 10.27 years. A high Dollar Age like this suggests stability and longevity. A catalog containing mature works is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

Sound Recordings. Sound recording royalties benefit from streaming disproportionately more than composition-based royalties. If Spotify pays 70-cents of every dollar on music rights, 60-cents of that goes to the sound recording copyright (which the label splits with the artist based on their contract agreement), while the remaining 10-cents goes to the composition copyright.

Record labels see significant benefits as a result. According to an analysis of publicly-stated financial results by Music Business Worldwide, labels Universal, Sony, and Warner jointly turned over just over $6.93 billion globally last year from streaming income alone.

You can see this trend reflected in the catalog up for bid. This is good news for you as the investor, as it follows the industry macro trend of rising streaming royalties for labels.

Multiple Income Streams. The winner of this auction can receive royalties from various streams:

  • Sales: Royalties paid to artists and producers when a recording is sold, which can be downloaded (on a platform like iTunes), as well as physical copies being sold (such as a C.D.).
     
  • Streaming: Royalties paid to artists and producers when a recording is streamed “on-demand” (like Spotify or Apple Music for example).
     
  • Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.

WHAT IS BEING SOLD?

The Seller's interest in all sound recording royalties (except for non-interactive digital performance royalties distributed by SoundExchange) attributable to the sound recordings listed in the Track List noted above. 

DISTRIBUTION NOTE

Royalties from 2016 through H1-2019 were administered directly by Provident. Beginning in H2-2019, Sony Music Entertainment took over administration which resulted in a change of format for the statements.

About the Royalty Distributor

Provident Label Group is a part of Provident Entertainment, a division of Sony Music, focusing primarily on Christian music in Franklin, Tennessee. 

The administration of royalties is done on a biannual basis by Sony Music Entertainment. Sony Music is a global recorded music company with a current roster that includes a broad array of local artists and international superstars. It is home to premier record labels representing music from every genre, including Arista Records, Columbia Records, Epic Records, Essential Records, RCA Records, and Sony Classical, among many others. Sony Music Entertainment is a wholly-owned subsidiary of Sony Corporation of America.

Similar Auctions

Attention

This action is restricted to Royalty Exchange users.
Please, sign in or create a free account to continue.

Sign In Register