Viral Hip-Hop Catalog: Bella Thorne, Hoodie Allen + More

Place a bid on sales and streaming income from the debut LP of outrageous hip-hop artist and LGTBQ-advocate LIL PHAG.

$125,000

closing price

Auction Closed

Top Bid: Stephen T

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: $110,000
Bidding Increment: $5,000
Closing Price: $125,000
End Date: May 31, 2019, 3:00 PM MDT
Dollar Age:

0.85 Years

Last 12 Months' Royalties:

$55,556

Investment Term:

Life of author + 70 years

Distributors:

Stem and TuneCore

Rights Included:

Sales & Streaming

Interests Included:

Rightsholder (World)

Track List:

Stem Track List and TuneCore Track List

First Distribution: June 17, 2019
Distribution Frequency:

Monthly 

Buyer Fees:

$500

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What rights are included?

Description

Up for auction are sound recording royalties generated by a unique collection of newly-released hip-hop tracks from outlandish hip-hop artist LIL PHAG. As the winning bidder, you’ll collect monthly sales and streaming earnings from this catalog.

Known for being a polarizing figure in pop culture, LIL PHAG creates outrageous and infectious music aimed to support LGBTQ artists in the hip-hop genre, all while parodying the current state of hip-hop music.

Following industry trends, 93% of this asset’s income in the last year came from streaming sources. Apple Music is the leading platform with 43% of royalties in the last year. However, Spotify is right behind with 41% of earnings in the same time period.

This offering features songs from the 2017 album GOD HATES LIL PHAG. The album is debut release from hip-hop act LIL PHAG, which is the viral character/songwriter of internet sensation Elijah Daniel. Along with Billboard charting producer Sam F, the album features appearances from other pop culture figures like Bella ThorneRico Nasty, Hoodie Allen, and CupcakKe, to name a few.

The catalog's highest-earning track is the 2017 release “Clout 9” from LIL PHAG featuring Bella Thorne, Dr. Woke, and Tana Mongeau. The single brought in 17% of last year's royalties and has nearly four million spins on Spotify while the video has over five million views on YouTube. “Clout 9” — and album GOD HATES LIL PHAG — also charted impressively on iTunes hip-hop charts.

It’s also worth noting that LIL PHAG has an impressive following on Spotify with over 125,000 monthly listeners. Other top-earning songs include “Elton John,” “Rick and Morty,” and “Deadahh,” collectively they brought in 37% of last year’s income. Not to be overlooked is the title “Mark Cuban,” which is a nod to the billionaire businessman who also happens to be a fan of LIL PHAG.

Key Drivers

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, while the remaining 10-cents goes to the composition copyright.

In the last year, 93% of royalties came from streaming services, with Apple Music as the leading contributor. This is good news for you as the investor, as this catalog earns from the sound recording copyright.

Featured Artist & New Releases. LIL PHAG and his producer Sam F embarked on a full U.S. tour last year, which included special guests such as the shark himself, Mark Cuban. Cuban has continued to support the album, and the song “Mark Cuban” (also included in this catalog), in recent interviews with both Business Insider and GQ.

LIL PHAG is also set to release his sophomore album in the coming year. While the new album/songs are 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. Also, it’s anticipated that songs from the album will be featured in the next Shane Dawson docuseries. This is noteworthy as Dawson's last docuseries boasted over 120 million views. 

Hip-Hop/Streaming. This catalog is a perfect example of two trends: hip-hop and streaming's growth worldwide. According to BuzzAngle's 2018 Year End Report, hip-hop is the most popular genre of music in the U.S. The driver for the increase is streaming. Hip-hop/rap tracks accounted for more than a quarter of all on-demand plays on music streaming services in the US in 2018.

What is being sold? 

The seller's interest in all royalties (except synchronization, and non-interactive digital performance royalties collected by SoundExchange), attributable to the sound recordings listed in the Track Lists noted above. 

About the Royalty Distributor

Stem is a digital aggregator that specializes in distribution, collection, and payment solution for artists and their teams. Stem has integrated with Amazon, Apple Music, iTunes, Deezer, Google Play, Pandora, among others. The platform distributes royalties on a monthly basis. 

TuneCore is a New York-based independent digital music distribution service, founded in 2005. TuneCore offers musicians and other rights-holders the opportunity to distribute and sell or stream their music through online retailers such as iTunes, Spotify, Amazon Music, Google Play, Tidal, and others.

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