Demi Lovato’s “Concentrate” & Other Pop Hits

Description

This catalog features pop hits from around the globe, including two tracks from Demi Lovato’s 2017 Platinum-selling album Tell Me You Love Me.

Thanks to this catalog’s global appeal, the majority of earnings derived from overseas sources with 52% of last year’s revenue. Domestic (United States) streaming accounts for 39% of royalties over the last 12 months with Apple Music and Spotify leading the way. 

Demi Lovato’s “Concentrate” is this asset’s top-contributor with 34% of royalties in the last year. The track is off Lovato’s 2017 album Tell Me You Love Me. The Platinum-certified album reached the Top 10 in numerous countries worldwide and peaked at No 3 on the Billboard  200. Also from the album is “Hitchhiker,” bringing in 30% of revenue over the last four quarters. To date, "Concentrate" and "Hitchhiker" have a combined 41+ million spins on Spotify. 

This collection also includes “That’s My Baby” from Japanese pop artist RiRi and a 2018 release “Wait” from the wildly popular South Korean/Chinese boy band EXO. "Wait" is off EXO's album LOVE SHOT, the album went double Platinum on the Goan Music Chart, along with impressive sales in other countries.  

Key Drivers

New Releases. Demi Lovato is rumored to be working on a new album, her first since 2017’s Tell Me You Love Me. While the new 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.

International Earnings. The majority of this catalog’s earnings come from abroad — at 52% of historical earnings. These international earnings include income from radio, streaming platforms, and TV/Film. It's important to note that international earnings can often be reported to distributors with limited detail and with irregular frequency. As the winner of this auction, you’ll be entitled to any past performance royalties paid by BMI, regardless of when they were earned.

Streaming Growth Worldwide. According to IFPI’S Global Music Report 2019, streaming revenues were up 34% in 2018, accounting for nearly half (47%) of total recorded music revenues. By the end of 2018, there were 255 million users of paid subscription accounts globally. 

This is good news for you as the investor, as 55% of last year's income came from domestic streaming. The second-leading source is “international” which signifies royalties earned outside the United States, including income from streaming platforms.