Streaming-Driven Hip-Hop Catalog

Up for auction is a collection of hip-hop songs featuring new and established artists alike, including Nicki Minaj, Yo Gotti, Lil Wayne, 2 Chainz, and more.

$12,800

closing price

Auction Closed

Top Bid: David P

The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.

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: $8,000
Bidding Increment: $300
Closing Price: $12,800
End Date: Jan 09, 2019, 3:25 PM MST
Last 12 Months' Royalties: $3,042
Investment Term: 10 years*
Distributors: BMI
Rights Included:

Public Performance 

Interests Included:

Songwriter (World)

Track List:

Track List

First Distribution: January 18, 2019
Distribution Frequency: Quarterly
Buyer Fees:

$500

* Please see the FAQ tab for more information on the 10-year investment term.

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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, TV/Film/Commercial Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, Samples, etc.
Distributors: BMI

Description

Bid now for a chance to earn from a collection of hip-hop tracks with established, streaming value. In the last 12 months alone, this collection has shown growth driven by increasing popularity on streaming platforms like Pandora, Apple Music, YouTube, and Spotify.

Released in 2016, the top-earning track “81” by hip-hop artist Yo Gotti is a relatively new song with ongoing earning potential. “81” has driven the majority of this collection’s YouTube earnings, contributing to 65% of revenue in the last 12 months. The song’s 2017 release is the cause of the notable spike in quarterly earnings seen in Q1 2017 as seen on the Earnings By Quarter chart under the Financials tab.

Contributing to nearly a third of earnings in the last 12 months is “I Luv Dem Strippers” featuring hip-hop legends 2 Chainz and Nicki Minaj. Nearly 40% of this collection’s historic earnings come from this track. Finishing close behind in earnings is the 2009 release “Do The Ricky Bobby” which contributes to 34% of historic earnings.

A handful of additional tracks including “We Been On” featuring Birdman and Lil Wayne, “Got It On Me” from Boosie Badazz, and others round out this collection.

Key Drivers

Streaming/Hip-Hop. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. Hip-hop overtook rock in 2017 as the most popular genre of music in the U.S. and now accounts for 31% of all music consumption. The driver for the increase is streaming. According to Rolling Stone, total consumption of Urban songs (Hip-Hop/Rap and R&B) by both streams and sales grew by 18% in the first half of 2018. Streaming accounts for over 80% of this catalog’s earnings over the last 12 months and these earnings are up 3% in the same period.

Radio. Historically, radio is one the largest source of revenue for this catalog, accounting for 43% of historic royalties. Although radio royalties are still being generated, they could eventually level off. Typically, songs that experience significant radio play can often build a foundation for other types of income.

Case in point: streaming. Historically, streaming brought in 35% of royalties. In the last 12 months, however, streaming increased to 80% of royalties. Streaming royalties are also seeing an increase over the last 12 months. So as we’re seeing the radio royalties begin to slow down, other income sources (streaming) begin to increase.

About the Royalty Distributor

Broadcast Music, Inc. (BMI) is one of four United States performing rights organizations, along with ASCAP, SESAC & Global Music Rights. It collects license fees from music users on behalf of songwriters, composers, and music publishers and distributes them as royalties to those members whose works have been performed. For more information on BMI’s distribution schedule, click here.

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