Sanctus Real’s “Lead Me” & More

Description

Invest in multiple income streams from a catalog of Christian rock music performed by popular band Sanctus Real.

As the winning bidder, you’ll earn several royalty types: public performance, mechanical, and sync, among others. Mechanical earnings are the top source in the last year with 55% of revenue. And impressively, these mechanical earnings grew 8% compared to the previous timeframe. Public performance is the second highest-earning source and has seen rather consistent revenue over the last three calendar years, averaging $4,300/annually.

Formed in 1996, Sanctus Real is a Christian rock band, known for their modern alternative rock style and guitar-driven sound. The foundation of this catalog is three songs from the band's fifth studio album Pieces of a Real Heart. The album was nominated for Best Contemporary/Pop Gospel Album at the 2010 Grammy Awards along with a Dove Award for Rock/Contemporary Album of the Year.

Off Pieces of a Real Heart, the catalog's highest-earning track is “Lead Me” with 42% of last year’s royalties. The song hit No. 1 on Billboard's Christian Music chart and is Sanctus Real’s second most popular song on Spotify.

Other songs from Pieces of a Real Heart included are “Forgiven,” which charted at No. 6 on Billboard's Christian Songs and the title “The Redeemer,” — combined they account for 22% of income in the last year. This catalog also contains the 2008 single “Whatever You’re Doing” from Sanctus Real, which saw 28% year-over-year growth.

Key Drivers

Dollar Age This catalog has a Dollar Age of approximately 10 years. This means the majority of royalties earned in the last 12 months came from songs that have collected royalties for 10 years. A high Dollar Age like this suggests stability and longevity and is worth noting as an investor. This can help sustain the asset’s earnings moving forward.

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

• Mechanical: Royalties paid to publishers when music is sold (like digital downloads), and also when music is streamed on-demand, like on Spotify (streaming mechanicals).

• Performance: Royalties paid 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 publishers for use of music in a movie, TV show, or commercial.

• Christian Copyright Licensing International (CCLI): sells direct licenses to churches to streamline copyright issues for various religious works.

• Print: Royalties paid when music is transcribed into print, like sheet music, and then distributed.

New Album Release. Sanctus Real is still active and recording new music. In fact, the band just released a new album Unstoppable God in August 2019. While the new songs are not included in this auction, new releases can help boost an artist's back catalog. The release of new music draws discovery among first-time listeners and re-engages existing fans.