Pop & Hip-Hop Publishing Royalties
Earn from multiple income sources with a global catalog featuring the hit single “Heatwave” from popular DJ Robin Schulz.
- Closed February 28, 2019
- Life-of-rights term
- $40,555 last 12 months
- Musical Composition
- Songwriter (World)
- Kobalt
About This Auction
- $40,555
- Track List
- Track List
- Musical Composition
- Interests Included
- Songwriter (World)
- Mechanical, Public Performance, Sync
- No
- Distributors
- Kobalt
- Sources
- Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc.
- Life of author + 70 years
- First Distribution
- March 1, 2019
- Distribution Frequency
- Bi-annually
- Starting Price
- $100,000
- Bidding Increment
- $4,000
- Closing Price
- $104,000
- End Date
- February 28, 2019, 3:00 PM MST
- Buyer Fees
- $500‡
‡ Become a Royalty Exchange All Access Investor to waive auction fees and enjoy additional exclusive benefits.
Description
As the winner of this auction, you will collect the of sync, mechanical, and royalties for this global catalog.
The largest income source for this offering is — publishing royalties earned when music is either physically sold (CDs), downloaded (iTunes), or streamed online (Spotify). These make up 63% of earnings for this catalog in the last year.
The top-earning song “Heatwave” is from world-renowned German DJ Robin Schulz and features American hip-hop artist Akon. “Heatwave” charted successfully around the globe and became Gold-certified in both Germany and Italy. As a result, international earnings are strong for this track. The house/pop anthem contributes 67% of earnings in the last 12 months.
Other notable tracks include “Blow It In The Wind” from Grammy-winner Chris Brown (19% of last year's earnings) and an R&B hit from vocalist Tank “You Don’t Know,” which is demonstrating steady year-over-year income. Not to be overlooked are 2014 titles from Trey Songz — “Smartphones” and “Loving You” — as well as “Better Half” from Boyz II Men.
Finally, thanks to this catalog’s international appeal, you’ll notice a spike in earnings in H2-2017. This is a result of international royalty distributions (mechanical and ) that lagged behind domestic royalty collections. As the winner of this auction, you’ll be entitled to any publishing royalties paid by Kobalt from all foreign (and domestic) sources, regardless of when they were earned going forward.
Key Drivers
Song Age. Industrywide, “Deep Catalog” (music released more than 3 years ago) represents 50% of music streamed today. Impressively, this collection of songs aligns with this trend. The highest-earning track in the catalog — “Heatwave” — was released 3+ years ago. The song continues to generate royalties, especially abroad. Other top songs have release dates dating back to 2010. A catalog containing more mature works is something that is worth noting as an investor.
Mechanical Rates. The U.S. Copyright Royalty Board recently raised the rates digital music services must pay for … by nearly 44% over the next five years. Historically, this catalog earns primarily from royalties from — 63% in the last 12 months. As the winner of this auction, you will benefit from the mechanical rate increase as you collect .
Income Mix. The winner of this auction can receive income from various royalty streams:
-
Mechanical: Royalties paid to songwriters and artists when music is sold (downloaded) but also when music is streamed (streaming mechanicals) “on-demand” like Spotify for example.
-
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 .
-
Synchronization: Royalties paid to songwriters and publishers for the licensing of a song in music for a movie, TV show, or commercial.
Matching Right
This seller's publisher holds a matching right on any sale of income in this catalog. The publisher will have the opportunity to match the winning bid after this auction closes. If you are the winning bidder, the publisher must first decline their matching right before you will be able to complete your purchase. This process is generally completed within 5–10 business days.
IMPORtant note about the distributors
The prior administrator of this catalog was Warner/Chappell Music and the data presented in the financials are from Warner/Chappell. Kobalt Music Group recently acquired the administration of this collection of songs. Going forward, Kobalt will be collecting and disbursing royalties from this catalog and the winning bidder will receive payments from Kobalt.
About the Royalty Distributor
Kobalt Music Group is an independent rights management and publishing company, acting primarily as an administrative publishing company, not owning any copyrights. Kobalt is trusted by some of the world’s greatest artists, and represents more than 40% of the top 100 songs and albums in the U.S. and U.K.
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.
Financials
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Earnings over time, and where they came from.
FAQ
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Answers about the term, the bidding and the royalties.
Media
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Videos, audio and images from the catalog.
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