Trey Songz — Producer Royalties

Streaming-driven, 10-year-old, growing sound recording royalties for a Platinum-certified single from Trey Songz.

$31,000

closing price

Auction Closed

Top Bid: Jerome U

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: $15,000
Bidding Increment: $125
Closing Price: $31,000
End Date: Jul 16, 2020, 3:28 PM MDT
Dollar Age:

9.80 Years

Last 12 Months' Royalties: $2,590
Investment Term: Life of author + 70 years
Distributors: Warner Music Group
Rights Included:

Sales, Streaming, Sync

Interests Included:

Producer (World)

Track List:

Track List

First Distribution (paid 30 days from receipt): September 30, 2020
Distribution Frequency: Biannually
Buyer Fees:

1% of closing price or $500 (whichever is greater)‡§

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What rights are included?

  Musical Composition Sound Recording
Copyrights included? No
Rights:
Mechanical
Public Performance
Sync
Sales
Streaming
Sync
Sources: Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements, Samples, etc.
Distributors: Warner Music Group

Description

This single-song auction offers streaming-driven returns with year-over-year growth from the R&B hit “Love Faces” by Trey Songz

LISTING HIGHLIGHTS: 

  • Life of Rights investment term
  • Nearly 10-year Dollar Age 
  • Valuable sound recording royalties, with streaming growth

FINANCIAL HIGHLIGHTS:

Overall royalties generated by the single grew 18% compared to the previous year — that’s notable for a song released nearly 10 years ago.  In fact, earnings for the most recent six-month period accounted for (H1-2019) were 35% higher than the first half of 2017, over three years ago. 

Streaming drove 92% of earnings in the last 12 months, an increase of 13%. Apple Music is the top streaming platform with 33% of the song’s total returns. Historically, streaming generated 79% of all earnings, so that means the increase in streaming is making up for the decline in other formats. 

ABOUT THE CATALOG: 

Released in 2010, "Love Faces" is also off Trey Songz’ fourth studio album Passion, Pain & Pleasure. The album debuted at No. 2 on the Billboard 200, was well-received by critics and fans, and achieved Platinum status. 

“Love Faces” was the third single from the album and hit No. 3 on Billboard’s Hot R&B/Hip-Hop Songs. To date, the track has 38 million spins on Spotify while the video has over 65 million views on YouTube. 

Key Drivers

Dollar Age. This catalog has a Dollar Age of 9.80 years. A high Dollar Age like this suggests stability and longevity. A catalog containing mature works with consistent (and even growing earnings) is something worth noting as an investor. This can help sustain a catalog's earnings moving forward.

Sound Recordings. 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, 92% of last year’s royalties came from streaming services, and those earnings have increased by 13%. This is good news for you as the investor, as it follows the industry macro trend of rising streaming royalties for labels.

Multiple Income Streams. The winner of this auction can receive royalties from various streams:

  • Sales: Royalties paid to artists and producers when a recording is sold, which can be downloaded (on a platform like iTunes), as well as physical copies being sold (such as a C.D.).
     
  • Streaming: Royalties paid to artists and producers when a recording is streamed “on-demand” (like Spotify or Apple Music for example).
     
  • Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.

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.

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