“Redemption” From Hip-Hop Star Drake

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 80% of earnings for the three distributions to date.

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 is the most-streamed artist in the world with 55.7 million monthly listeners on Spotify!

“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, 86% 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.

Featured Artist. Drake just recently released a new album Scorpion in June 2018. While the new songs are not included in this auction, the monster success of Scorpion can help boost Drake’s back catalog. Drake is also actively touring through the November of 2018.

Drake also happens to rank No. 1 worldwide on Spotify's most-streamed artist list with a staggering 55.7 million monthly listeners. The release of new music and active tours reengages existing fans and also draws discovery among new fans.