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:||Sep 02, 2020, 3:18 PM MDT|
|Last 12 Months' Royalties:||
|Investment Term:||Life of author + 70 years|
BMI, PRS for Music, STIM and Sony/ATV Scandinavia
Mechanical, Public Performance, Sync
|First Distribution (paid 30 days from receipt):||
September 15, 2020 (See Note Below)
Varies (See Note Below)
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 & Performances, Samples, etc.|
|Distributors:||BMI, PRS for Music, Sony/ATV, STIM||—|
Up for bid is an established asset that combines both songwriter and publishing royalties for a pop/hip-hop catalog with global appeal.
As the winning bidder you’ll collect mechanical, public performance, and sync royalties from four different distributors (BMI, PRS, STIM, and Sony/ATV Scandinavia).
This catalog earns songwriter royalties from three performing rights societies: BMI in the U.S. and Canada, PRS for Music in the U.K., and STIM for the rest of the World. It also collects publishing royalties from Sony/ATV Scandinavia, which include mechanical, public performance, and sync earnings. Among them, Sony/ATV generates the most earnings, at 45% of the total returns in the last year. STIM follows with 38%.
Performance royalties are the top source of royalties, generating 59% of last year’s total. Following are mechanical earnings with 30% of returns. Both income sources showed the best overall year-over-year stability across all source royalty types.
The three top-earning songs were released over 10 years ago, yet their royalties continue to grow.
About the catalog
The top-earning song (with 59% of returns) is “Written In The Stars,” the third single from the album. The track debuted at No. 1 on the UK Singles Chart and No. 12 on the Billboard Hot 100. It also became Tinie Tempah’s first Top 10 hit on the Billboard Mainstream Top 40.
Other singles from Disc-Overy include“Invincible" featuring Kelly Rowland, “Snap,” and "Just a Little" featuring Range.
The catalog also includes titles from Ghanaian-British rapper/songwriter Tinchy Stryder. Most notably is “Game Over,” from his third studio album Third Strike. Released in 2010, the track’s earnings grew 3% last year over the one prior.
Dollar Age. This catalog has a Dollar Age of 9.98 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 “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.
Streaming Growth Worldwide. According to IFPI’S Global Music Report 2019, streaming revenues were up 34% in 2018, accounting for nearly half (47%) of total recorded music revenues. By the end of 2018, there were 255 million users of paid subscription accounts globally.
Note About Distributors and Payment Frequency
Please note this asset has four royalty distributors: BMI, PRS, STIM, and Sony/ATV Scandinavia.
BMI, PRS for Music, and STIM collectively distribute the songwriter's share of worldwide public performance royalties (STIM also distributes various mechanical royalties). Sony/ATV collects the songwriter/co-publisher's share of all publishing royalties for the included works. The winning bidder will collect royalties from all four distributors.
Each distributor has a varying payment frequency:
- BMI: Quarterly
- PRS for Music: Quarterly & Various "Out-Of-Cycle" Payments
- STIM: Quarterly & Various "Out-Of-Cycle" Payments
- Sony/ATV Scandinavia: Bi-Annually
The first scheduled payment dates for each distributor are as follows:
- BMI: September 18, 2020
- PRS for Music: October 15, 2020
- STIM: September 15, 2020
- Sony/ATV Scandinavia: September 30, 2020
About the Royalty Distributor
Broadcast Music, Inc. (BMI) is one of four United States performing rights organizations, along with ASCAP, SESAC & Global Music Rights. It collects license fees from music users on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. For more information on BMI’s distribution schedule, click here.
PRS for Music is the United Kingdom's public performance collection society. It represents their songwriter, composer and music publisher members’ performing rights, and collects royalties on their behalf whenever their music is played or performed publicly. PRS undertakes collective rights management for musical works on behalf of its 140,000 members.
Sony/ATV Music Publishing is an American music publishing company owned by Sony through Sony Entertainment. It is the world’s largest music publishing company with a network of 37 offices in 29 cities and 22 countries across the globe. Since 2012 Sony/ATV has administered EMI Music Publishing, further extending the reach of the songs, songwriters, and artists it represents. Sony/ATV’s distribution schedule is biannual.
STIM is a Swedish collective management organization for music creators and publishers. On their behalf, STIM administers and licenses performing and mechanical rights to music and lyrics. STIM was founded in 1923 and is headquartered in Stockholm. STIM is a non-profit organization representing 85,000 songwriters, composers, text authors and music publishers worldwide.