Publishing Royalties: 16-Year-Old Hip-Hop
An established catalog with growing earnings featuring the Atlanta hip-hop group YoungbloodZ.
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: | $25,000 |
| Bidding Increment: | $250 |
| Closing Price: | $47,000 |
| End Date: | Sep 09, 2020, 3:58 PM MDT |
| Dollar Age: | 16.69 Years |
| Last 12 Months' Royalties: | $5,279 |
| Investment Term: | Life of author + 70 years |
| Distributors: | The Administration MP |
| Rights Included: | Mechanical, Public Performance, Sync |
| Interests Included: | Songwriter/Publisher (World) |
| Track List: | |
| First Distribution (paid 30 days from receipt): | November 15, 2020 |
| Distribution Frequency: | Quarterly |
| 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.
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What rights are included?
| Musical Composition | Sound Recording | |||||||
|---|---|---|---|---|---|---|---|---|
| Copyrights included? | No | — | ||||||
| Rights: |
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| 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: | The Administration MP | — |
Description
Up for auction are publishing royalties generated by a group of songs dating back to 1999 and performed by the southern hip-hop duo YoungBloodZ.
As the winning bidder, you will collect from three types of royalties: mechanical, public performance, and sync for the included tracks.
LISTING HIGHLIGHTS:
- 16+ year Dollar Age
- Growth across top-two royalty sources
FINANCIAL HIGHLIGHTS:
Earnings for this catalog are fairly evenly distributed between mechanical and public performance royalties at 42% and 41%, respectively. What’s more,both income sources grew year-over-year at 13% (mechanical) and 17% performance.
The top-producing track — “Damn” — brought in 42% of last year’s returns. Its year-over-year decrease in earnings is due to a one-time licensing fee (sync) in Q4-2018 that was not repeated in 2019. The track was used in an episode of ABC’s comedy Single Parents.
However, looking at the song’s other income sources, you’ll notice mechanical and public performance earnings are on the rise, both up over 12% in the same timeframe. This is also noteworthy as the song is 17-years-old.
Earnings for the remaining four of the top-five singles also grew year-over-year.
ABOUT THE CATALOG:
This hip-hop listing prominently features songs from the Atlanta hip-hop duo YoungbloodZ.
Leading the catalog’s royalties is the 2003 single “Damn” featuring Lil Jon. The track was released on the duo’s second studio album Drankin’ Patnaz. The album charted very well, capturing the No. 1 spot on Billboard’s Top R&B/Hip-Hop Albums chart and peaking at No. 5 on Billboard 200.
“Damn” is YoungbloodZ’s highest hit to date, peaking at No. 4 on the Hot 100, making it the group’s sole top 10 single on the chart. It also went No. 1 on the Hot Rap Songs chart.
Next up is “Presidential” from the group’s 2005 album Ev’rybody Know Me with 16% of last year's return. Also off the same album is “Chop Chop” bringing in 5% of royalties.
Other top titles include: “I Smoke, I Drink” (2008) and “U-Way (How We Do It)” from YoungbloodZ’ debut 1999 album.
Key Drivers
Dollar Age. This catalog has a Dollar Age of 16.69 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for nearly 17 years. A high Dollar Age like this suggests stability and longevity.
A catalog containing mature works with consistent (and even growing earnings) is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.
Income Mix. The winner of this auction can receive income in various ways:
- Mechanical: Royalties paid to songwriters and publishers when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).
- 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.
About the Royalty Distributor
The Administration MP is a music publishing service for songwriters, producers, beat-makers, and artists. The Administration MP registers, licenses, administers, and most importantly, collects royalties around the world, for their customers.