Publishing Royalties: Contemporary Christian + Worship

A well-established, faith-based catalog of music with earnings from multiple royalty streams.

$900,000

closing price

Auction Closed

Top Bid: Stephen T

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: $900,000
Bidding Increment: $7,500
Closing Price: $900,000
End Date: Nov 17, 2020, 3:00 PM MST
Dollar Age:

5.51 Years

Last 12 Months' Royalties: $156,393
Investment Term: Life of author + 70 years
Distributors: Capitol CMG
Rights Included:

Mechanical, Public Performance, Sync

Interests Included:

Songwriter/Co-publisher (World)

Track List:

Track List 

First Distribution (paid 30 days from receipt): November 30, 2020
Distribution Frequency: Quarterly
Buyer Fees:

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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 & Performances, Samples, etc.
Distributors: Capitol CMG

Description

Now accepting bids is the publishing share of royalties for a hit Christian and worship music catalog. 

The winning bidder will collect from three types of publishing royalties: mechanical, public performance, sync —along with another notably unique and lucrative income source — for the lifetime of the copyright of the included songs. 

LISTING HIGHLIGHTS: 

  • 5-Year Dollar Age
  • Life of Rights Investment Term
  • Multiple royalty types, including streaming mechanicals and specialty licensing

FINANCIAL HIGHLIGHTS:

Nearly two-thirds (65%) of last year’s royalties came from a very unique source, a licensing program for churches and worship organizations called Christian Copyright Licensing International (CCLI). CCLI is an organization that allows churches and worship groups to easily license music to ensure artists, labels, and studios receive fair compensation for their work. As an overall income source, CCLI earnings are quite stable year-over-year, averaging just over $100,000/annually from 2017 through 2019. 

Churches around the world use thousands of songs during worship services and need permission from the copyright owners to record them, make arrangements, duplicate copies, project lyrics on screen, etc. Through CCLI, a church can obtain a single annual license that covers any song in CCLI's collection. You’ll notice a spike in earnings in Q-2 and Q-4 of each year. This is a result of large CCLI payments for digital and print use of the song “The Lion And The Lamb.”

The catalog’s next largest income source are mechanical royalties, earned from sales and streaming activity, with 22% of last year’s returns. Notably, these earnings are up 15% compared to the prior year. 

This established catalog’s top songs were released between 2011 to 2015. Three of them grew year-over-year. The catalog’s top song — “The Lion And The Lamb” — brought in 78% of royalties in the last 12 months. 

ABOUT THE CATALOG: 

The star of this collection is contemporary Christian worship song “The Lion And The Lamb.” It was originally released in 2015 as a part of Bethel Music’s live worship album Have It All and performed by solo artist Leeland Mooring. A studio recording of the same song was subsequently released by Christian rock band Big Daddy Weave from their album Beautiful Offerings, which added to its popularity. The winning bidder will collect publishing royalties on both versions. 

The Bethel Music album Have It All was nominated for two GMA Dove Awards: Worship Album of the Year and Recorded Packaging of the Year. Big Daddy Weave’s album Beautiful Offerings was also very successful peaking at No. 4 on the Billboard Christian albums chart and even had crossover success by cracking into the Billboard 200. Big Daddy Weave’s version of the song hit No. 2 on both Billboard’s Christian Airplay and Christian Adult Contemporary charts. 

“The Lion And The Lamb” was also released on various compilation albums and with all releases totaling over 73 million spins on Spotify. This shows the value of owning royalties on the musical composition copyright. Every time a new artist records and releases a version of the song, the original songwriter earns royalties. 

Outside the song’s initial commercial releases, “The Lion And The Lamb” has also consistently generated CCLI royalties for its use in church and worship services. That’s notable for a song that’s over five years old. 

Also featured in this collection are:

Key Drivers

Dollar Age. This catalog has a Dollar Age of 5.51 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for over five years. A high Dollar Age like this suggests stability and longevity. A catalog containing mature works is something worth noting as an investor, as it 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 “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.
     
  • Christian Copyright Licensing International (CCLI): sells direct licenses to churches to streamline copyright issues for various religious works.

Matching Right

This seller's publisher holds a matching right on any sale of the income generated by 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. For more information on how the matching right works, please email: info@royaltyexchange.com

About the Royalty Distributor

Capitol CMG Publishing represents more than 100,000 songs, hundreds of copyright catalogs, and some of Christian music's top songwriters. The publishing division has received multiple Christian Music Publisher of the Year honors from Billboard Magazine, ASCAP and BMI.

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