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.
|End Date:||May 04, 2020, 3:03 PM MDT|
|Last 12 Months' Royalties:||
|Investment Term:||30 years*|
|Distributors:||Warner Music Group|
Sales, Streaming, Sync
|First Distribution (paid 30 days from receipt):||September 30, 2020|
1% of closing price or $500 (whichever is greater)‡§
* Please see the FAQ tab for more information on the 30-year investment term.
‡ Investors placing the opening bid on any listing pay no marketplace fees 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 one might get loud! Here’s a rare opportunity to invest in sound recording royalties collected by the producer of two time-tested rock albums—the Platinum-certified, No. 1 charting All Hope Is Gone from heavy metal icons Slipknot; and the self-titled 2008 debut album from influential Canadian pop-punk rockers Simple Plan.
The winning bidder will collect royalties generated from any sales, streaming, and sync fees for either album, as well as the individual singles contained on both. Sales and streaming, in particular, pay a greater share of revenue to sound recording royalties over composition royalties. So this is an opportunity not to be missed.
- Valuable sound recording royalties
- Impressive streaming activity with year-over-year growth
- Established 11-year-old catalog from acts with lasting relevancy
Total annual earnings for this catalog increased 21% year-over-year, quite notable for a collection released nearly 12 years ago.
Driving this growth is the music industry’s dominant format—streaming subscriptions—with 73% of the last year’s earnings… which itself is 40% higher than the prior year.
Earnings for each of the top five tracks in this collection are growing, four by double-digits. The highest-earning track—2008’s “Psychosocial”—generated 41% of last year’s total, an increase of 20% over the prior year.
Collectively, the entire catalog generated six figures in 2019, an increase of nearly 50% over 2017’s earnings. Again… nearly 12 years after the initial albums' release.
ABOUT THE CATALOG:
Formed in 1995, Slipknot is an iconic heavy metal band widely known for its aggressive style, not to mention attention-grabbing costumes and energetic live performances. As well as its seven Grammy nominations, the group attracts a dedicated, almost fanatic following with their own moniker—fans are known as “Maggots”— that have contributed to Slipknot becoming the kind of mainstream phenomenon that transcends the music itself.
This catalog’s foundation is Slipknot’s fourth studio album All Hope Is Gone. The 2008 album debuted at No. 1 on the Billboard 200, and captured the top spot on eight other charts worldwide. The RIAA awarded it Platinum certification, largely driven by five singles… all of which are included in this catalog.
Notable titles include “Psychosocial” which was the second single released off the record, and subsequently nominated for Best Metal Performance for the 51st Grammy Awards. Meanwhile “Snuff” peaked at No. 2 on the Billboard Hot Mainstream Rock Tracks chart, the band’s highest-charting single to date.
Slipknot released its most recent album We Are Not Your Kind last August, which debuted in the top 10 album charts in nine countries, including the U.S. While that album is not included in this listing it points to the band’s continued relevance. The band announced plans to release an “experimental” album consisting of music recorded during the original All Hope Is Gone recording session, which when released could draw renewed attention to the 2008 release included in this auction.
Finally, this catalog includes the influential Canadian rock band, Simple Plan’s self-titled album. Also released in 2008, the record hit No. 2 on the Canadian album charts, No. 14 on the Billboard 200 and charted in the top 10 in Australia, Austria, Brazil, Sweden, and Switzerland.
Dollar Age. This catalog has a Dollar Age of 11.17 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for more than 11 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.
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. In the last year, 75% of royalties came from subscription streaming services and those earnings are up 40%. This is good news for you as the investor, as it follows the industry macro trend of rising label streaming royalties.
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.
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.