Songwriter & Publishing Royalties: Tinie Tempah & Others

Description

Up for bid is an established asset that combines both songwriter and publishing royalties for a pop/hip-hop catalog with global appeal. 

As the winning bidder you’ll collect mechanical, public performance, and sync royalties from four different distributors (BMI, PRS, STIM, and Sony/ATV Scandinavia).

FINANCIAL HIGHLIGHTS:

This catalog earns songwriter royalties from three performing rights societies: BMI in the U.S. and Canada, PRS for Music in the U.K., and STIM for the rest of the World. It also collects publishing royalties from Sony/ATV Scandinavia, which include mechanical, public performance, and sync earnings. Among them, Sony/ATV generates the most earnings, at 45% of the total returns in the last year. STIM follows with 38%. 

Performance royalties are the top source of royalties, generating 59% of last year’s total. Following are mechanical earnings with 30% of returns. Both income sources showed the best overall year-over-year stability across all source royalty types. 

The three top-earning songs were released over 10 years ago, yet their royalties continue to grow. 

About the catalog

This collection features the English hip-hop artist Tinie Tempah’s 2010 album Disc-Overy.

The top-earning song (with 59% of returns) is “Written In The Stars,” the third single from the album. The track debuted at No. 1 on the UK Singles Chart and No. 12 on the Billboard Hot 100. It also became Tinie Tempah’s first Top 10 hit on the Billboard Mainstream Top 40.

Other singles from Disc-Overy include“Invincible" featuring Kelly Rowland, “Snap,” and "Just a Little" featuring Range.

The catalog also includes titles from Ghanaian-British rapper/songwriter Tinchy Stryder. Most notably is “Game Over,” from his third studio album Third Strike. Released in 2010, the track’s earnings grew 3% last year over the one prior.

Rounding out the top songs in this collection are "Det Går Bra Nu," from Swedish rapper Petter, “Push It” from iSHi (featuring Pusha T), and “Children of the Sun” also from Tinie Tempah. 

Key Drivers

Dollar Age. This catalog has a Dollar Age of 9.98 years. A high Dollar Age like this suggests stability and longevity. A catalog containing mature works with consistent (and even growing) earnings is something worth noting as an investor. This 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 “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.