Sound Recording Royalties: Covers & Instrumentals

Earn 75% of digital download and streaming royalties for a catalog of sound recordings. This catalog includes covers of popular American and Latin music, as well as instrumentals, karaoke, and background tracks.

$72,500

closing price

Auction Closed

Top Bid: Herbert H

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: $25,500
Bidding Increment: $1,000
Closing Price: $72,500
End Date: Jun 09, 2017, 2:05 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: 10,097 Euros
Royalty Type: Digital Downloads, Streaming
First Payment: August 2017
Fees: $99/year Royalty Exchange Admin Fee

*Royalty Exchange will collect the winning bidder's portion of the royalties and make payments on a quarterly basis. The $99 yearly administration fee will be deducted from the first quarterly payment in each calendar year.

Please note, the financials for this listing are in Euros. The auction price is in USD.

Description

Invest in 75% of digital download and streaming royalties for a huge catalog of sound recordings. What's unique is this auction also includes 75% of royalties for any music added to the catalog in the future, which the seller says will happen soon. In the last 12 months, 75% of this catalog earned 10,097 Euros.

The current catalog includes albums, ringtones and music videos of high-quality cover songs and instrumental recordings. These span from classic American hits to current Latin American pop hits. Many of the recordings include multiple versions of popular songs, including cover versions, instrumental versions, a cappella versions, and karaoke versions.

Digital and streaming royalties are growing worldwide, and this catalog is driven by digital revenue. Earnings come from multiple countries and sources, including Spotify, iMusica, iTunes, and more. Spotify alone contributes 45% of the earnings, and its share grew 223% over the last four quarters from the four previous.

The recordings are created by Viel Music, an emerging multimedia production company. The works are available to stream and download in more than 350 online music outlets through Believe Digital, one of the largest digital music distributors in the world. You and the seller will share in the royalties this catalog generates, and by all works added to the catalog in the future. Please see the “Financials” tab for earnings info and the “Media” tab to listen to some samples from the catalog.

Key Drivers

  1. Viel Music plans to add many more albums to their catalog in the coming years. The winning bidder is entitled to the same 75% split of royalties for all those new songs. The upside of royalties from yet-to-be-released tracks is a benefit not typically available in royalty auctions. Since Viel Music will continue earning 25% of the royalties as well, they have an incentive to continue producing more music and maximize its revenue.
  2. Spotify's continued growth in the streaming market. Spotify is the dominant streaming service and the largest source of income for this catalog. In the past year, active monthly users grew to over 100 million across 60 countries. Spotify's market share among paid streaming users is over 40%. The growth and reach of Spotify is a huge leverage point for this royalty stream.

What is being sold?

75% of digital sales and streaming royalties earned by the current and future sound recordings in the seller's Believe Digital accounts. The accounts are: Liev Instrumentals, Smges, Smges Brazil, and Smges Latin. Royalties earned from Seller's direct licensing and sales of ringtones on iTunes are excluded.

The 75% interest in the royalties includes a security interest in 75% of the underlying sound recording copyrights. The buyer may exercise its security interest if the seller becomes insolvent or otherwise unable to license the sound recordings or collect royalties for the catalog.

How does this asset make money?

Every time a song, ringtone, or music video from this catalog is streamed or downloaded from an online music service, you'll share in 75% of the royalties. This catalog is distributed in over 350 music outlets worldwide, including Spotify, iMusica, Amazon, Google, & Deezer. Plus, you'll receive 75% of royalties for any songs added to the catalog after the sale.

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
Distributors: Believe Digital

About the Royalty Distributor

Believe Distribution Services is the leading fully independent digital distributor and label services provider for artists & labels worldwide. They provide dedicated label & international campaign management, trade & digital marketing services, comprehensive video management & distribution, synchronization, and neighbouring rights.

*Royalty Exchange will collect royalties from Believe and pay the winning bidder's 75% share on a quarterly basis.

Similar Auctions

We recently sold another similar catalog of recordings created by Viel Music. Check out that listing here!

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