Publishing Royalties: Rich Homie Quan & Kevin Gates

Description

This catalog features tracks from two hot names in hip-hop: Rich Homie Quan and Kevin Gates. 

The winning bidder will collect three types of royalties: mechanical, public performance, and sync for the lifetime of the included songs. 

FINANCIAL HIGHLIGHTS:

Mechanical royalties drive the earnings for this catalog with 67% of last year’s royalties and stable year-over-year returns. That’s notable as these earnings stem from streaming activity, meaning the catalog predominantly earns royalties from the dominant format in music today. 

You’ll notice a spike in royalties in H2-2019. This is a result of two sync licenses for the track “Type of Way.” The song was placed in the feature film Uncut Gems (2019) and in an episode of BET’s Boomerang (Season 1, Episode #106). Any time this film or episode air on television or are streamed online, the winning bidder will earn a public performance royalty.

ABOUT THE CATALOG: 

This offering features tracks primarily from Rich Homie Quan along with a single from Kevin Gates. 

The catalog’s leading single with 64% of earnings is “Type of Way” performed by Rich Homie Quan. “Type of Way” was the second single from Quan’s third mixtape Still Goin In: Reloaded. Released in 2013, the Gold-certified track peaked at No. 8 on Billboard’s Hot Rap Songs and No. 50 on the mainstream Billboard Hot 100. To date, the track has nearly 80 million spins on Spotify, making it Quan’s third most popular song on the platform. 

Next up is “Get On My Level” bringing in 19% of last year’s returns. The single is off Kevin Gates’ 11th mixtape By Any Means (2014).

Rounding out the catalog are three other singles from Rich Homie Quan: “Feelings,” “Investments” and “Type of Way (Remix).”

Key Drivers

Dollar Age. This catalog has a Dollar Age of 7.60 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for over seven years. A high Dollar Age like this suggests stability and longevity. A catalog containing mature works is something worth noting as an investor, as it can help sustain a catalog's earnings moving forward.

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 2021, subscription streaming revenues for recorded music increased 18.5% over the previous year. That’s the sixth consecutive year of growth, totaling 443 million paid subscription accounts worldwide. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues.