14-Year-Old Award-Winning Hip-Hop

Description

Comprised of over a dozen works dating back to the early 2000s, this impressive catalog boasts a Dollar Age of over 14 years. Alongside age, it also features consistency and growth. In fact, radio royalties are on the rise, up 40% in the last 12 months while streaming follows suit, up 13% in the same time period.

2005 release from 50 Cent, “Disco Inferno” drives the royalties generated by this catalog, contributing to 85% of earnings in the last 12 months. The track itself is on the rise, up 7% in the same time period. Released as the debut single for to the 5X Platinum 50 Cent album The Massacre, the track peaked on over half a dozen charts worldwide, landing a No. 3 spot on both Billboard’s Hot 100 and Hot Rap Songs charts. In 2006, the track received a BMI award and a Grammy-nomination for Best Rap Solo Performance.

Also featured on The Massacre, “In My Hood” makes up 4% of recent earnings. The track boasts 3.5 and 9.4 million spins on YouTube and Spotify, respectively. Additionally, this collection also earns from the Bow-Wow track "How You Move It" from Bow Wow’s Platinum album The Price of Fame. The track samples the composition "Disco Inferno.”

Key Drivers

Dollar Age. This catalog has a Dollar Age of approximately 14.02 Years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for more than 14 years. A high Dollar Age like this suggests stability and longevity. “Disco Inferno” was released in 2005 and royalties continue to grow. 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.

Radio. Radio is the largest source of revenue for this catalog, accounting for 54% 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 7% of royalties. In the last 12 months, however, streaming accounted for 38% of royalties. Streaming royalties are also seeing a 13% 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.

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’s interesting is many of the works that make up this collection were released prior to the creation of today’s popular streaming platforms. Despite this, streaming accounts for 38% of this catalog’s earnings over the last 12 months and these earnings are up over 13% in the same period.