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:||Nov 19, 2020, 3:00 PM MST|
|Dollar Age:||1.89 Years|
|Last 12 Months' Royalties:||$17,448|
|Investment Term:||Life of author + 70 years|
|Distributors:||Warner Music Group|
Sales, Streaming, Sync
|First Distribution (paid 30 days from receipt):||March 31, 2021|
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|
|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:||—||Warner Music Group|
This asset features sound recording royalties from a single track: the Platinum hit “Valuable Pain” from YoungBoy Never Broke Again.
As the winning bidder, you’ll collect streaming and digital download royalties for the lifetime of the copyright on the single, as well as the producer’s share of royalties earned for sales of the associated album. Streaming, in particular, pays a greater share of revenue to sound recording royalties over composition royalties.
- Life of Rights investment term
- Valuable sound recording royalties, driven by streaming
Streaming (both ad-supported and subscription) generated nearly all of the catalog’s earnings — 99% over the last 12 months. Subscription streaming is the dominant of the two, alone accounting for 78% of total last 12 month’s earnings.
ABOUT THE CATALOG:
Released in 2018 on NBA YoungBoy’s track mixtape Realer, “Valuable Pain” was a standout track on the record. The song went Platinum, reaching No. 40 on Billboard’s R&B and Hip-Hop chart.
“Valuable Pain” also cracked into the mainstream Hot 100 at No. 87. To date, the track has nearly 50 million spins on Spotify.
YoungBoy has a staggering YouTube following. He’s currently No. 1 on the YouTube Music chart for the United States. Additionally, in the last 28 days, his videos have globally amassed a collective 219+ million views, with “Valuable Pain” in the No. 14 spot on his “Top Videos” list with over 3.4 million views in the same time period. To date, the video for “Valuable Pain” has an impressive 167+ million views in total.
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.
Hip-Hop & Streaming. Hip-Hop/Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to BuzzAngle's 2019 Year End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Six out of the top 10 streamed songs were hip-hop/rap and 52 out of the top 100 most streamed songs were hip-hop/rap.
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.
About the Royalty Distributor
Warner Bros. Records Inc. is one of the top major record labels in the world. They are the foundation label of the present-day Warner Music Group (WMG). Warner Bros. Records is home to a wide array of legendary artists with a rich catalog of contemporary hits and influential standards. With a commitment to artist-friendly policies and long-range career development, they continue to maintain a strong share of the label market around the world.