Kiiara’s 3X Platinum Hit — Publishing Royalties

Description

Place a bid on this offering that features sizable publishing income from a pop/EDM catalog with global reach.

Royalty sources are well-distributed between rights collected by the publisher. Mechanical earnings accounted for 49% of last year’s income, with public performance bringing in 25%. Sync is right behind with 23% of revenue, which is up significantly year-over-year.

Streaming is the driving revenue source for this asset — 47% of earnings came from streaming mechanicals and streaming performance sources in the last year. This is noteworthy as this catalog’s income mix follows the industry trend of rising streaming revenue.

This catalog’s top-contributing track is “Gold,” from eclectic pop star Kiiara. As her most popular single to date, “Gold” brought in 51% of last year’s earnings and 67% of historic revenue. Following its 2015 release, the triple-Platinum track was wildly successful on the radio in the United States and claimed top-spots on multiple Billboard charts. Abroad, the song charted in 20 countries and went Platinum in five counties. “Gold” has also enjoyed recent syncs, with uses in popular TV series like Power, Quantico, Geordie Shore, Riverdale, and APB, among others.

This listing also features additional Kiiara works including “Feels,” “Dopeman Trippin,” and the 2017 release “Whippin.” Not to be overlooked are tracks from popular EDM artist Era Istrefi and “Perfect” (2015) from Selena Gomez. Finally, the catalog contains Katy Perry's 2017 release "Dance With the Devil," and multiple SZA tracks including "Lies," "Pray," and more.

Key Drivers

Income Mix. The winner of this auction can receive income in various ways:

• Mechanical: Royalties paid to songwriters and artists when music is sold (think CD or vinyl) but also when music is streamed (streaming mechanicals) “on-demand” (like Spotify).

  • The US Copyright Royalty Board recently raised the rates digital music services must pay for mechanical royalties by nearly 44% over the next 5 years. As the winner of this auction, you will benefit from the mechanical rate increases over the next five years.

• Performance: Royalties paid to songwriters when music is performed publicly. Music played over the radio, in a restaurant or bar, or over a service like Spotify or Pandora is considered a public performance.

• Synchronization: Royalties paid to songwriters and publishers for the licensing of a song in music for a movie, TV show, or commercial.

New Releases. Kiiara recently released a new song, video, and various remixes in June 2019. While the new songs are not included in this auction, new releases can help boost an artist's back catalog. The release of this new music should draw discovery among first-time listeners and re-engage her existing fans.

Streaming & EDM. According to BuzzAngle’s 2018 report, as a genre, 87% of EDM (electronic) listeners tune in through on-demand streaming platforms like Spotify and YouTube.

This is good news for you, as the winning investor will benefit from this collection’s strong streaming foundation — in the last year, 47% of royalties came from streaming mechanical and streaming performance sources. Top earning track for this collection “Gold” currently boasts over 600 million streams collectively between Spotify and YouTube. “Gold” is also performing artist Kiiara’s top -streamed work on Spotify.

It’s important to note, the EDM (electronic dance music) industry is currently valued at $7.4 billion, estimating that the global EDM industry could be worth nearly $9 billion by 2021. In fact, EDM as a genre is beginning to blend into mainstream culture, with crossover hits appearing in both pop and R&B categories. As the once-underground genre becomes deeper embedded in mainstream culture, crossover tracks bridge the gap between genres.