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:||Nov 20, 2018, 2:00 PM MST|
|Last 12 Months' Royalties:||$25,205|
|Investment Term:||Life of author + 70 years|
Sales & Streaming
|First Distribution:||March 31, 2019|
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What rights are included?
Earnings for “Boom” are generated by sales (physical and downloads) and streaming of the track, both classified as “digital sales”— making it the leading income source.
The label Because Music (in partnership with Major Lazer’s record label Mad Decent) is the top distributor for the song’s digital earnings, with over half the track’s income to date. Released in 2015, “Boom” is off Major Lazer’s extended version of the massively popular album Peace is the Mission (Extended). What’s more is “Boom” was re-released on Major Lazer’s 10-year anniversary compilation album in October 2018 — Major Lazer Essentials. As of today, “Boom” has over 111 million spins on Spotify.
The song features a unique mashup of EDM, afrobeats, hip-hop, and reggaeton from contributing side artists Ty Dolla $ign, WizKid, and others. While the track was released in 2015, the label held all accrued earnings owed to side artists until 2017. So the large 2017 payments you’ll see in the Financials tab account for not only 2017 earnings, but the earnings held from the prior two years as well. (See the note “Accrued Earnings” below).
As the winning bidder, you’ll collect on the sales and streaming of “Boom” on both records going forward now that the accrual/withholding period is over.
Record Labels & Streaming. As we’ve come to know, streaming is booming worldwide, and record labels are seeing 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 above $6 billion — approximately $1 billion a month — between them in the first half of 2018 on a global basis. Streaming contributed over half this total, with over $3 billion in the same period.
Since you’ll collect on the sound recording (label) side for “Boom,” this macro industry trend of rising label streaming royalties is good news for you.
Upcoming Release. Major Lazer is set to debut a new album in 2019. While the new songs are not included in this auction, new releases can help boost an artist's back catalog. The release of new music draws discovery among first-time listeners and re-engages existing fans.
Accrued Earnings. The large payments in 2017-H1 and 2017-H2 include payments for royalties that were earned in prior periods. The seller, as a side artist on this track, was not paid until the main artist recouped its recording costs. The seller’s earnings for “Boom” accrued beginning with the first record sold/streamed in 2015 but were not paid until 2017. As a result, the 2017 payments cannot be attributed to the prior pay periods in which they were earned. Thus, an IRR cannot be calculated by the Theoretical IRR model and is listed as “N/A.”
About the Royalty Distributor
mtheory provides services, support and strategy across a wide range of disciplines, including marketing, touring, live event production, financing, digital services, and label services, to managers of some of the world’s most successful and innovative artists, including Diplo, Major Lazer, Mumford & Sons, Skrillex, Dillon Francis, Trey Songz, and more. mtheory disburses earnings on a biannual basis.