Sound Recording Royalties: Instrumentals + Covers

Earn 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.

$39,000

closing price

Auction Closed

Top Bid: Scott 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: $17,000
Bidding Increment: $500
Closing Price: $39,000
End Date: May 14, 2018, 3:03 PM MDT
Investment Term: Life of author + 70 years
Last 12 Months' Royalties: $5,788
Royalty Type: Digital Downloads and Streaming
First Payment: May 2018
Buyer Fees: None

Description

Invest in these digital download and streaming royalties generated by a huge catalog of sound recordings. In the last 12 months, this asset earned $5,788.

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, Google, and more. Streaming is the primary income source with 84% of historic earnings. Spotify alone contributes 52% of this catalog's income over the last 12 months.  

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. Please view the “Media” tab to listen to some samples from the catalog.

Key Drivers

Diversification. Revenues are widely distributed for this catalog of over 4,000 albums and upwards of 20,000 titles. No single song makes up a significant portion of its earnings, meaning you're not tied to just one title to produce royalties. This means built-in diversification. The asset also earns from over 100 countries, again providing a diverse income mix. 

Spotify. Spotify was the largest individual source, contributing 55% of the catalog’s revenue to date. The streaming service is a dominant force in the market and recently made headlines for their public filing. Spotify's number of active monthly users and subscribers are increasing which is a leverage point for this catalog.

What is being sold?

100% of the seller’s interest in the digital sales and streaming royalties earned by the current and future sound recordings in the rights owner’s Believe Digital accounts. The accounts are: Liev Instrumentals, Smges, Smges Brazil, and Smges Latin. Royalties earned from the rights owner’s direct licensing and sales of ringtones on iTunes are excluded.

The interest in the royalties includes a security interest in the underlying sound recording copyrights. The buyer may exercise its security interest if the rights owner 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 earn royalties. This catalog is distributed in over 350 music outlets worldwide, including Spotify, iMusica, Amazon, Google, & Deezer. 

Royalty Exchange will administer the payments from Believe to the winning bidder. The next payment is scheduled for May 2018.

Unless the buyer opts out of the opportunity, this listing will automatically be relisted as a "Buy It Now" sale at a premium over the closing price. The relisted asset will remain live until it is purchased, or until its first royalty distribution. This gives the winning bidder the chance to earn an immediate return on the asset while awaiting the first royalty payment.

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 neighboring rights.
 

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