Publishing Royalties: Dua Lipa, M.I.A. & Others

Description

This a second chance to earn royalties from this diverse global offering. We recently auctioned the songwriter’s share of public performance royalties for this catalog (you can review that auction here), and now the publishing side is available for acquisition. 

The winning bidder will collect from three types of royalties: mechanical, public performance, and sync for the lifetime of the copyright on songs from some of today’s hottest artists: Dua Lipa, M.I.A., and many more. 

LISTING HIGHLIGHTS:

• Life of Rights investment term
• Multiple royalty types, including valuable streaming mechanical earnings
• Multi-Platinum artists with global, mainstream appeal 

FINANCIAL HIGHLIGHTS:

Mechanical royalties drove 48% of last year’s earnings, an increase of 6% over to the prior year. This growth can be attributed to new releases.

Sync royalties also increased as a result of three tracks placed in TV and other formats,  including “Want To” which had two sync licenses alone. 

ABOUT THE CATALOG: 

The highest-earning title is English singer Dua Lipa’s “Want To,” with 48% of last year’s earnings. Originally intended for release on Lipa’s 2017 self-titled album, “Want To” went unreleased until auto manufacturer Jaguar picked it up in 2018 in an online ad campaign for its I-PACE remix feature. 

The song was later released on Dua Lipa: Complete Edition in late 2018 and has amassed nearly 95 million spins on Spotify to date. Outside the Jaquar placement, “Want To” was also licensed for CBS’s MacGyver (Season 3, Episode 7). 

Next up is 2017’s “Bestie” from English rapper Yungen featuring Yxng Bane. The track generated 16% of last year’s royalties and is the catalog’s all-time overall top-earner. The song is Yungen's highest-charting and only top 10 UK single. 

Another notable title in this collection is M.I.A.’s 2015 single “Borders.” The politically-charged track peaked at No. 10 on Billboard’s Dance/Electronic Digital Songs. 

Rounding out the catalog: 

• Another Yungen track “Mind on It” (2018) featuring Jess Glynne
• “Frustrated” from Chris Brown’s double-Platinum album Heartbreak on a Full Moon
• 2016’s “Rewear It” also from M.I.A. 
•  2019’s “Nothing But Net” from English hip-hop artist AJ Tracey (from the UK Gold-certified album AJ Tracey)
• “Healthy” from Canadian-American boy band PRETTYMUCH.  

Key Drivers

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

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

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 streaming mechanicals — royalties paid for music that is streamed on-demand — brought in 32% of last year’s total income.

New Album. Dua Lipa just released a new album — Future Nostalgia — on March 27th, 2020. While the new songs are not included in this auction, new releases can help boost an artist's back catalog, as new music draws discovery among first-time listeners and re-engages existing fans. M.I.A. also has been teasing a new album for 2020 (her first since 2016).