10+ Year Old Growing Hip-Hop Catalog

Description

Up for auction is a collection of early 2000’s releases from hip-hop artist Hurricane Chris. With over a decade of earnings, this catalog continues to show impressive growth despite its age. In the last 12 months, streaming income grew 14%, thanks to a strong foundation of early radio play (which drove nearly half this collection’s lifetime earnings).

Leading the collection’s earnings is the track “A Bay Bay,” released in 2007. It alone contributes 62% of total earnings in the last 12 months, and grew 25% in the last 12 months. The original track received instant recognition by additional artists, sparking the creation of a remix featuring The Game, Lil Boosie and E-40, also included in this listing.

Additional Hurricane Chris tracks in this catalog are showing growth as well. In the last 12 months, “She’s Fine” (2009) and “Hand Clap” (2007 ) have grown 10% and 9%, respectively. Collectively, the works make up nearly 20% of earnings in the last 12 months.

Key Drivers

Hip-Hop/Streaming. 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 nearly 70% of this catalog’s earnings over the last 12 months and these earnings are up over 14% in the same period.

Longevity. Some of the songs were released 11 years ago and they are still earning. This demonstrates the longevity and impact the songs and artists have on today’s listeners. Industrywide, “Catalog Songs” (music released more than 18 months ago) and “Deep Catalog” (music released more than 3 years ago) together represent over 60% of music streamed today.

This collection of songs aligns with this trend. The highest-earning track — “Ay Bay Bay” — was released in 2007. A catalog containing more mature works is something worth noting as an investor.

International. A growing portion of this catalog’s earnings come from abroad — at 15% of earnings in the last 12 months. Although international royalty distribution can lag behind domestic payments and arrive with limited detail, as the winner of this auction you’ll be entitled to any past performance royalties paid by BMI, regardless of when they were earned.