Publishing Royalties: Drakes' "Redemption"

DESCRIPTION

Here’s an opportunity to invest in publishing royalties generated by the Platinum-selling single: “Redemption” from megastar Drake.

As the winner of the auction, you’ll collect the publisher's share of sync, mechanical, and public performance royalties. The largest income source for “Redemption” is mechanical royalties — royalties earned when music is either physically sold (CDs), downloaded (iTunes), or streamed online (Spotify). These mechanical royalties make up 62% of earnings in the last 12 months.

Released in 2016 “Redemption” peaked at No. 61 on Billboard Hot 100. The song is certified-Platinum by the RIAA and has racked up nearly 85+ million spins on Spotify. What’s more, Drake holds the record for the most-streamed artist in the world with 8.2 billion streams in 2018 alone. 

“Redemption” was featured on Drake's 4x Platinum album Views -- which spent 13 consecutive weeks at No. 1 on Billboard 200 chart. The album was nominated for Album of the year as well as Best Rap Album at the 2017 Grammys. Views also became the first album to accumulate one billion streams on Apple Music.

KEY DRIVERS

Income Mix. The winner of this auction can receive income from three different royalty streams:

• 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. This is good news for you as the investor. To date, 82% of this song’s income comes from mechanical royalties. 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.

Drake’s Massive Popularity. In June 2018, the RIAA announced that Drake is the top-certified singles artist ever with 142 million certified units. Drake also holds a number of historic Billboard chart records including Most Simultaneously Charted Hot 100 Titles, Most Top 10 Hot 100 Debuts in a Week, Most Hot 100 Top 10s Among Solo Males and many more. Click here to view the full list.

Drake just recently released a new album and while he is not currently on tour, he did just wrap up a hugely successful world tour which consisted of a week residency at Europe’s top-grossing concert venue, London’s famed O2 Arena. While new songs are not included in this auction, the release of new music and active tours reengages existing fans and draws discovery among new fans.