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:||Jul 08, 2019, 3:00 PM MDT|
|Last 12 Months' Royalties:||
|Investment Term:||10 years*|
Universal Music Group
Sales, Streaming, Sync
|First Distribution (paid 30 days from receipt):||
September 30, 2019
* Please see the FAQ tab for more information on the 10-year investment term.
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What rights are included?
In 2005, Amos Lee was named one of Rolling Stone's "Top 10 Artists to Watch.” This collection highlights his works released shortly after. In 2006, Lee recorded his second album, Supply and Demand, which features Lee’s most popular work to date and the top-earning track, “Sweet Pea.” The album itself was produced by former Wallflowers and Natalie Merchant bassist, Barrie Maguire. “Sweet Pea” contributes to 76% of recent earnings growing by 56% in the same time period.
“Sweet Pea” has appeared in multiple commercial placements, driving 30% of earnings historically. Following its release, the track also appeared in an AT&T commercial and most recently a Citibank commercial, contributing to the recent commercial growth of 56% over the previous year.
Additionally, subscriptions (paid Spotify or Pandora) and programmed plays both increased in the last 12 months over the previous year, at 102% and 28%. A collection featuring mature works with growing earnings is something worth noting.
Additionally featured on Supply and Demand, “Night Train” contributes to over 8% of royalties in the last 12 months. Released in 2006, this track has collected for over a decade and contributes to this catalogs impressive dollar age of 12.74 years.
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, 18% of royalties came from subscription streaming services. This is good news for you as the investor, as it follows the industry macro trend of rising label streaming royalties.
Dollar Age. This catalog has a Dollar Age of approximately 12.74 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for more than a decade. A high Dollar Age like this suggests stability and longevity. “Sweet Pea” was released in 2006 and royalties continue to grow at a staggering 56% in the last 12 months alone.
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.
About the Royalty Distributor
Universal Music Group is an American global music corporation that is a subsidiary of the French media conglomerate Vivendi. UMG's global corporate headquarters are located in Santa Monica, California, and UMG owns and operates a broad array of businesses in more than 60 countries.It is considered one of the "Big Three" record labels, along with Sony Music and Warner Music Group.