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.
1% of closing price or $500 (whichever is greater)‡§
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Internet Streaming, AM/FM & Satellite Radio, TV/Film/Commercial Performances, etc.
Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
This catalog features a pair of recently released hip-hop tracks, giving you early access to public performance royalties from up-and-coming artists.
Domestic streaming is the largest contributor to this catalog’s earnings, accounting for 75% in the last 12 months, and 81% of all-time royalties.
Both songs in the catalog contribute relatively equally to the last four quarters’ earnings at 51% - 49%, so royalties are not overweighted for one song or the other.
ABOUT THE CATALOG:
The top track in this collection is “Off Deez” from JID featuring J. Cole. The single is off the 2018 album DiCaprio 2, which was met with widespread critical acclaim, snagging the No. 17 spot on Billboard’s "20 Best Hip-Hop Albums of 2018: Critics' Picks," and peaking at No. 41 on the Billboard 200.
“Off Deez” is certified Gold and to date, has nearly 70 million streams on Spotify, making it the artist’s second-most popular song on the platform.
Also included in this catalog is the Gold-certified "Nephew" performed by Smokepurpp featuring Lil Pump. The non-album single reached No. 4 on Billboard’s Bubbling Under Hot 100 and has nearly 103 million spins on Spotify.
Hip-Hop & Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to a recent Nielsen Music report, hip-hop claimed 27.7% of U.S. music consumption in 2019, for both sales and streams combined. Streaming accounts for 75% of this catalog’s earnings over the last 12 months.
New Releases. Smokepurpp just recently released a new single on May 29, 2020. While the new song is 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.
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.
Please see the sample accounting agreement document for reference.
Why does Royalty Exchange need to account?
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