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.
Oct 04, 2016, 3:00 PM MDT
Life of author + 70 years
Past 4 Quarters' Royalties:
Public Performance, Mechanical
Bid on 100% of seller’s songwriter royalties from the hit song “Vivir” performed by Spanish pop star David Bustamante. “Vivir,” a single on the album of the same name, was released in 2014. The album became #1 on the charts in Spain and reached Platinum status, meaning over 40,000 albums were sold.
In the last 12 months, the asset generated $7,549.27. The royalties will be distributed by SGAE, Spain's music rights organization.
What is being sold?
100% of Seller’s interest in the songwriter’s share of public performance and mechanical royalties attributable to the musical work “Vivir” performed by David Bustamante. These rights are administered by SGAE. SGAE will distribute the royalties to the winner of this auction on a quarterly basis. The next payment is scheduled for December 2016.
how does this asset make money?
Every time “Vivir” is played on Apple Music, Pandora, Spotify, or any other type of public performance, you earn royalties. Every time “Vivir” is covered by another artist, you earn money. Also, every time a copy of “Vivir” is downloaded, sold, or re-recorded, you earn royalties. SGAE collects royalties for public performance and mechanicals for all territories except the United States and Puerto Rico.
what is interesting about this asset?
David Bustamante is a Spanish pop singer and songwriter whose breakthrough came in 2001 when he won third place on the interactive musical reality TV show Operación Triunfo. The show achieved the highest audience ratings in the history of Spanish TV and helped launch Bustamante's musical career. He went on to sign with Vale Music Spain and Universal Music Latino and released his first album in 2002.
Bustamante's career is going on 14 years, and he has sold more than two million records - albums and singles combined - in Spain and Latin America. He has released nine albums, eight of which reached #1 in Spain. He was recently featured in an August Billboard article “Meet 6 Spanish Pop Stars Dominating Spain's Albums Chart” stating that he “has maintained his reputation as Spain’s answer to Ricky Martin for more than a decade.”
Bustamante's most recent album was released in June of this year, and he also announced the first dates to his 2016-2017 tour. This is important because the royalties available in the auction are for public performance, so if Bustamante performs “Vivir” at a concert, you earn a royalty. Additionally, tours and album releases are great ways for an artist to gain popularity, expand their fan base, and expose their fans to all of their songs and albums.
what rights are included?
about the royalty distributors
Sociedad General de Autores y Editores (SGAE) is a private entity devoted to the defense and collective management of the intellectual property rights of its more than 100,000 members. The repertoire administered today by SGAE exceeds ten million musical, dramatic, choreographic and audio-visual works.
Public performance royalties are payments made by radio stations, hotels, restaurants, night clubs, etc. to the composition copyright holder(s) for each public performance of the copyrighted work. In the U.S., public performance royalties are typically paid to performing rights organizations (e.g., ASCAP, BMI) who then distribute the royalties to the copyright holder(s).
Mechanical royalties are royalties deriving from per-unit payments made by recording companies or digital download providers to the composition copyright holder(s) for every purchase of a sound recording that reproduces the copyrighted composition.
Non-interactive digital performance royalties are payments made by non-interactive music services (i.e. those that mimic the experience of a radio broadcast) of a statutorily-set amount (on either a per-play or annual basis—depending on the type of service) to SoundExchange for the benefit of the sound recording copyright holder and the performing artists for the right to perform the copyrighted sound recording via non-interactive, digital means.
non-interactive digital performance royalties
The royalties owed to the creator(s) of a musical composition which are paid in return for the right to reproduce, distribute, or perform the copyrighted work.
A musical composition is one of the two copyrightable parts of a recorded song. It consists of the song's music, including any accompanying words, (i.e. the portion of a song that is capable of being fully expressed as sheet music) and is separate from any particular recording of the song or its performance by any particular artist.
A sound recording is one of the two copyrightable portions of a recorded song. It results from the fixation of a series of musical, spoken, or other sounds in a tangible (at least momentarily permanent) medium.
The portion of royalties owed to the owner of a sound recording. The owner may the performing artist, the producer, or another party (such as a record label) who contractually acquired the ownership of the copyrighted work (e.g., through a recording agreement), owns it by virtue of an employer-employee relationship with the creator(s) of the work, or specially commissioned the work.
rights owner's share
The portion of royalties owed to the performers of a sound recording in return for the right to perform the copyrighted work via non-interactive, digital services (e.g., Pandora, Spotify).
The portion of royalties owed to the music publisher which are paid in return for the right to reproduce, distribute, or perform a copyrighted musical composition, arising from a contractual obligation (i.e. a publishing agreement) or employer-employee relationship with the creator of composition (i.e. the songwriter(s)).
If an asset requires splitting up a catalog by works or percentages, Royalty Exchange may need to provide royalty accounting services to the buyer, seller, or both. This is because the royalty distributor may not be able to split royalties as intended by the asset transfer. Royalty Exchange's involvement helps to ensure accurate royalty payments. It also helps assure buyers and sellers that they are not missing out on potential earnings.
The accounting process often involves manual spreadsheet work and coordinating with royalty distributors. Royalty Exchange's goal is for the accounting service to be temporary. We plan to work with distributors to find solutions that will allow us to revert accounting and payment obligations back to the distributor, removing ourselves from the process. In the meantime, we've instituted the 5% fee to help offset costs in the manual accounting.
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