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.
|End Date:||Apr 20, 2018, 3:00 PM MDT|
|Investment Term:||10 years*|
|50% of Last 12 Months' Royalties:||$26,995|
|Royalty Type:||Performance, Mechanical, Sync|
|First Payment:||September 2018|
*Please see the FAQ tab for more information on the 10-year investment term.
Invest in publishing royalties generated by a pop catalog highlighted by the smash hit “Whip My Hair” from Willow Smith. This asset earned $26,995 in the last 12 months.
The highlight of the catalog is the title “Whip My Hair” performed by Willow Smith (also known as actor/singer Will Smith’s daughter). The Platinum-certified track brought in 90% of last year’s earnings. Released in 2011, “Whip My Hair” hit No. 11 on Billboard's Hot 100, No. 5 on Hot R&B/Hip-Hop Songs, and No. 28 on the Mainstream Top 40. It also charted in 14 other countries -- most notably at No. 1 on the U.K. R&B chart. “Whip My Hair” has an impressive 230+ million views on YouTube and is Willow’s most popular to-date on Spotify with over 22 million spins.
As the winner of this auction, you will collect the publisher's share of sync, mechanical and public performance royalties. The largest income source for this catalog is synchronization or syncs -- royalties paid for a song’s use as background music for a movie, TV show, or commercial -- with 52% of royalties in the last 12 months. Sync royalties are also on the rise, increasing 25% over the previous 12 months. Notable syncs for “Whip My Hair” include The Tonight Show, Ellen Degeneres Show, Rupaul’s Drag Race, and a commercial promotion for The Fresh Prince of Bel-Air on MTV.
Mechanical royalties are the second highest-earning income source, bringing in 29% of royalties in the last 12 months. These earnings are also on the rise (up 65% over the previous year), thanks to increased direct digital downloads and streaming mechanicals.
Finally, this catalog also contains songs from other pop and R&B artists. The second highest-earning title “Girls Talkin Bout” from R&B boy band Mindless Behavior. Also included are "Superhero” and “End Up Here” from English singer Cher Lloyd.
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 has earned about a quarter of its royalties from mechanical royalties. What’s more is that in the last 12 months, these royalties have increased 65% over the previous period. As the winner of this auction, for the next ten years, you will benefit from the mechanical rate increase as you collect mechanical royalties.
Income Mix. This auction is for three different royalty streams for the catalog. This means the winner of this auction can receive income in multiple ways:
Mechanical: Royalties paid to songwriters and artists when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).
Performance: Royalties 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 use of a song as background music for a movie, TV show, or commercial.
What is being sold?
10 years of royalty payments derived from 50% of the seller's interest in the publisher's share of mechanical, sync and public performance royalties attributable the seller's Sony/ATV catalog. See the “Financials” tab for a full track list.
How does this asset make money?
Every time “Whip My Hair” or any song in this catalog is synced in a TV show or commercial, downloaded online or streamed on-demand, the winner of this auction will earn royalties.
Royalty Exchange will administer the twice a year payments from Sony/ATV. The next distribution is in September 2018, which will be paid to the winning bidder by Royalty Exchange in October 2018.
What rights are included?
|Musical Composition||Sound Recording|
|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.|
About the Royalty Distributor
Sony/ATV Music Publishing is the world’s largest music publishing company with a network of 37 offices in 29 cities and 22 countries across the globe. Headquartered in New York, the company was set up in 1995 as a joint venture between Sony Corporation and Michael Jackson’s publishing company, and now owns or administers more than 3 million copyrights. It became a solely-owned Sony company in 2016. Since 2012 Sony/ATV has administered EMI Music Publishing, further extending the reach of the songs, songwriters and artists it represents.