Trey Songz Sound Recording Royalties

Growing streaming drives this 8-year-old catalog with tracks from R&B crooner Trey Songz.

$83,500

closing price

Auction Closed

Top Bid: Nicholas B

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: $30,000
Bidding Increment: $500
Closing Price: $83,500
End Date: Aug 03, 2020, 3:21 PM MDT
Dollar Age: 8.26 Years
Last 12 Months' Royalties: $9,614
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:

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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

At stake in this auction is an R&B collection with year-over-year streaming growth generated by four Trey Songz albums. 

As the winning bidder, you’ll collect sound recording royalties for the lifetime of the copyright for the included songs. 

LISTING HIGHLIGHTS:

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

FINANCIAL HIGHLIGHTS:

Total royalties for this catalog grew annually for the last three years, with 2019 up 15% compared to t2018. That’s notable for a collection of songs with an 8-year Dollar Age. 

It’s no surprise streaming brings in the majority of returns, accounting for 85% of royalties in the last 12 months, with a healthy increase of 20%. Historically, streaming generated 80% of all earnings, so that means the increase in streaming is making up for the decline in other formats. 

Notably, the catalog’s top song — “All We Do” — showed stable royalties with no fluctuation in annual earnings from 2018 to 2019.  

ABOUT THE CATALOG: 

This catalog features songs off three studio albums from Trey Songz: Ready (2009), Passion, Pain & Pleasure (2010), and Trigga (2014), plus the EP Inevitable (2011). 

The top song is “All We Do” from 2014’s Trigga with 41% of earnings. The Platinum-certified album debuted at No. 1 on Billboard 200.  

Next up is “Neighbors Know My Name” with 22% of royalties. The single is off the 2009, Platinum-certified album Ready, which debuted at No. 3 on Billboard 200. “Neighbors Know My Name” became Gold-certified as a result of the album’s success and hit No. 4 on the Hot R&B/Hip-Hop Songs chart. To date, the title has nearly 83 million spins on Spotify. 

Rounding out the catalog are other well-known Trey Songz titles “Jupiter Love” (Ready), “I Know (Can’t Get Back)” (Trigga), and finally “Doorbell,” “Massage,” and “Red Lipstick” (all from Passion, Pain & Pleasure).

Key Drivers

Dollar Age. This catalog has a Dollar Age of 8.26 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.

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 a movie, TV show, or commercial.

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 in 2018 from streaming income alone.

You can see this trend reflected in the catalog up for bid. Eighty-five percent of last year’s royalties came from streaming services. This is good news for you as the investor, as it follows the industry macro trend of rising streaming royalties for labels.

WHAT IS BEING SOLD?

The Seller's interest in all sound recording royalties (except for non-interactive digital performance royalties distributed by SoundExchange) attributable to the sound recordings listed in the Track List noted above. 

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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