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:||May 15, 2019, 3:04 PM MDT|
|Last 12 Months' Royalties:||
|Investment Term:||Life of author + 70 years|
|Distributors:||Warner Music Group|
Sales, Streaming, Sync
|First Distribution:||September 30, 2019|
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What rights are included?
This offering features sound recording royalties from the Atlanta-based hip-hop group Crime Mob, including the breakout, debut single “Knuck If You Buck.” The catalog contains every track from Crime Mob’s two albums: Crime Mob (2004) and Hated On Mostly (2007).
As the winning bidder, you will collect earnings generated from sales (physical and downloads), streaming, and sync for each of the tracks. Not surprisingly, subscription streams are by far the largest income source, with Apple Music, Spotify, and Pandora as the leading platforms.
The collection’s top-three earning songs have release dates ranging from 2004 to 2006. This means the catalog has an impressive Dollar Age of approximately 14 years. (Read more about Dollar Age and why it’s important here).
The highest-earning single is Crime Mob’s 2004 smash “Knuck If You Buck” featuring Lil' Scrappy. The track is off the group’s self-titled Crime Mob album and hit No. 25 on Billboard’s Hot R&B/Hip-Hop Songs. Impressively, over 15 years after its release, “Knuck If You Buck” still generates healthy royalties as it remains a relevant title for many hip-hop fans. The song has even been sampled in more recent hip-hop singles such as 2016’s “Juju On That Bea” from Zay Hilfigerrr & Zayion McCall.
Other top-producing tracks include 2006’s “Rock Yo Hips,” the group’s highest charting single at No. 8 Billboard’s Hot R&B/Hip-Hop Songs, as well as “Stilettos (Pumps)” off their debut album.
Sound Recording & Streaming: 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, over two-thirds of this collection’s revenue 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.
Increased Earnings in 2017 and 2018: As you refer to the biannual payment amounts, you’ll notice two spikes in the revenue. The first, there is an increase in royalties paid in H2-2017 which stems from ringtones/ringback earnings that were unapplied to the account from prior periods. Although this is not expected to be repeated, as the winner of this auction you are entitled to any future one-time payments like this should they occur again.
The second spike is seen in H1-2018, which is a result of “Knuck If You Buck” receiving sync placements and other licensing revenue for its use. This demonstrates the catalog’s still-relevant sync potential. As the winning bidder, you’ll be entitled to any upfront sync/licensing fees paid for the songs' use going forward.
NOTE ABOUT RIGHTSholder's PAYEE INTEREST
The seller does not receive detailed royalty data. Earnings presented are the total biannual payments received by the seller for the seller’s interest in the asset. 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.