Sales & Streaming: Hip-Hop Catalog

These royalties are generated from a collection of hip-hop tracks, featuring a dance hit “Sin City” from hip-hop artist Chrishan.

$92,000

closing price

Auction Closed

Top Bid: Andrew W

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: $54,000
Bidding Increment: $1,000
Closing Price: $92,000
End Date: Feb 09, 2018, 3:09 PM MST
Investment Term: Life of author + 70 years
50% of Last 12 Months' Royalties: $36,743
Royalty Type: Sales and Streaming
First Payment: March 2018
Buyer Fees: None

Description 

Up for auction are sound recording royalties produced by a hip-hop catalog featuring the artist Chrishan. These earnings come from the digital download and streaming of the included songs. Over the last 12 months, this collection of music earned $36,743.

This catalog’s royalties have increased dramatically in the last 12 months, and the reason behind the increase is the song “Sin City.” Released in 2015, “Sin City” gained viral notoriety in 2017 for its use in choreographed music videos. The song spawned the “Sin City Challenge” and fans began streaming and downloading the song to use in recorded dance videos, which subsequently were posted to YouTube along with other online streaming and social media sites. 

As a result, streaming royalties for “Sin City” increased beginning in April of 2017 and skyrocketed in July. Between April and November 2017, the song earned $27,974. Apple Music is the driving income force for both “Sin City” and the catalog overall with 51% of royalties in the last 12 months. Spotify is the second leading income source for the catalog with 25% of earnings in the same time period. “Sin City” has garnered nearly five million spins on Spotify and the lyric video has almost 3 million listens on YouTube.

Thanks to the viral rise of “Sin City,” other songs in this catalog have also seen growth. Additional Chrishan singles -- “Idfc.,” “Do It All Over,” and “Here 4 Ya” -- all saw notable growth in the last 12 months, although not nearly at the same rate as “Sin City.”

Key Drivers

Viral Popularity. The sudden and incredible surge in popularity of “Sin City” is a factor to consider with this asset. When a song goes “viral” it appeals to the masses and is easily shareable among fans and interested listeners. This cause and effect is evident in the spike in royalties for the catalog and "Sin City." The song saw over 12,000% increase in its earnings compared to the previous 12 months. This increase in royalties was thanks to the song's "viral" use in dance videos. It’s important to keep in mind that with any viral trend, popularity may not be sustainable.

Hip-Hop & Streaming. Hip-hop overtook rock in 2017 as the most popular genre of music in the U.S., accounting for 24.5% of all music consumption. The driver for the increase is streaming. According to BuzzAngle’s 2017 Music Report: Urban songs (Hip-Hop/Rap and R&B) were the most streamed songs in 2017, accounting for 32% of all streams.

What's interesting is that this catalog is a perfect example of these two trends: hip-hop and streaming's growth worldwide. Streaming sources account for the majority of the catalog's income with over 83% of last year's royalties. Thanks to “Sin City” and its viral popularity, Apple Music, and Spotify are the largest streaming sources — combined they brought in 76% of the catalog's income last year.

What is being sold?

50% of the seller's interest in all royalties (except synchronization, and non-interactive digital performance royalties collected by SoundExchange), attributable to the sound recordings listed in the tracklist on the “Financials” tab.

How does this asset make money?

Every time the “Sin City” is streamed on demand or digitally downloaded through sources like Apple Music, Spotify, iTunes, GooglePlay, etc., you will earn money. Royalty Exchange will administer royalties from Tunecore to the buyer on a monthly basis and the first payment will be March 2018.

What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Non-Interactive Streaming
Sync
Sources: Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Digital Downloads, etc.
Distributors: TuneCore

About the Royalty Distributor

TuneCore is a New York-based independent digital music distribution service, founded in 2005. TuneCore offers musicians and other rights-holders the opportunity to distribute and sell or stream their music through online retailers such as iTunes, Spotify, Amazon Music, Google Play, Tidal, and others.

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