Sound Recording Royalties: Cardi B’s “Bodak Yellow”

Collect sound recording income from a catalog highlighted by Cardi B’s 9x Platinum hit single “Bodak Yellow.”

$54,500

closing price

Auction Closed

Top Bid: David P

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: $35,000
Bidding Increment: $1,500
Closing Price: $54,500
End Date: Dec 05, 2019, 3:10 PM MST
Dollar Age:

~ 2 Years

Last 12 Months' Royalties: $14,799
Investment Term: Life of author + 70 years
Distributors:

Warner Music Group

Rights Included:

Sales,  Streaming, Sync

Interests Included:

Directed Payee (See Note Below)

Track List:

Track List

First Distribution: (paid 30 days from receipt):

March 31, 2020

Distribution Frequency:

Biannually 

Buyer Fees:

$500

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What rights are included?

Description

This offering features sound recording royalties from songs performed by hip-hop phenomenon and Grammy-winner Cardi B, including her 9x Platinum single “Bodak Yellow.”

As the winning bidder, you will collect earnings generated from sales (physical and downloads) and streaming of the catalog’s songs (and associated album). In the last 12 months, over two-thirds of this asset’s revenue came from streaming services, both ad-supported and subscription-based. Apple Music and Spotify are the leading platforms, accounting for over half of this asset’s total revenue.

Cardi B’s “Bodak Yellow” accounts for the majority of royalties for this collection. Officially released in June 2017, “Bodak Yellow” was the lead single from Cardi B’s debut, Grammy-winning album Invasion of Privacy.

The record-breaking, chart-topping hit put Cardi B on the map and helped her become one of the most popular artists of 2018. In fact, in September 2019, "Bodak Yellow" became the highest RIAA-certified single by a female rapper. The track was also nominated for Best Rap Performance and Best Rap Song at the 60th Annual Grammy Awards. To date, “Bodak Yellow” has a staggering 567+ million spins on Spotify, while the video has nearly 835+ million plays on YouTube alone.

As part of this collection, you’ll earn from Cardi B’s “Money Bag,” from the album Invasion of Privacy. Also included is “Lick” performed by Cardi B featuring Offset, included in a mixtape prior to Cardi B’s major label signing.

Key Drivers

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 Music Group 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, the majority of royalties came from streaming services — over two-thirds. 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 for example) as well as non-interactive streaming (Pandora).

  • Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.

Cardi B. Cardi B is an enormously popular, trailblazer for female hip-hop artists with a global following. In a short time, Cardi B had earned three No.1 singles on the Billboard Hot 100, while "Bodak Yellow" made her the second female rapper to top the chart with a solo output — following Lauryn Hill in 1998.

At one point in 2018, Cardi B had five Top 10 singles on Billboard’s Hot R&B/Hip-Hop at the same time, making her the first woman to do so, beating Beyoncé’s previous record of four. Cardi’s album Invasion Of Privacy (which features “Bodak Yellow”) was the first debut album by a female rapper to get an Album of the Year Grammy nomination in nearly 20 years. Invasion Of Privacy took home Best Rap Album at the 2019 Grammys, and also claimed the No. 1 slot on Rolling Stone's "50 Best Albums of 2018."

NOTE ABOUT DIRECTED PAYEE INTEREST

The seller’s interest in this asset is derived from a direct agreement with the producer and is included in the producer’s recording agreement with the distributor. The distributor pays a percentage of the royalties earned by the producer’s sound recordings to the seller for the life of the sound recording copyrights.

The seller does not receive detailed royalty data from the distributor. The buyer may not receive detailed royalty data from the distributor.

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.

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