Soul II Soul’s “Back To Life”

Description

Up for bid is a nearly 30 year-old R&B catalog highlighted by the Grammy-winning track “Back To Life” performed by British band Soul II Soul. What’s exciting is that this established offering not only continues to generate consistent earnings but in some cases, income sources are showing growth!

Released in 1989, “Back To Life (However Do You Want Me)” was a hit with both critics and fans. The song won Best R&B Performance by a Duo or Group with Vocals at the 1990 Grammy Awards and picked up a nomination at the Brit Awards for Best Single the same year. “Back To Life” also topped the charts at No. 1 in the United States, the United Kingdom, the Netherlands, and Canada.

Impressively, thirty years after its release “Back To Life” still produces consistent revenue. In fact, the song’s income grew 5% year-over-year and accounts for 60% of this asset's royalties over the last year. “Back To Life” also has continued relevance today, with artists sampling the composition in new releases, such as Big Boi’s “Shutterbug” (2010) and Lil Wayne’s “God Bless Amerika” (2013) to name a few — both songs are also included in this catalog.

Looking at the income mix, 60% of last year’s revenue came from international sources, which include radio, streaming, and TV/Film from outside the United Kingdom. International royalties also increased by 2% in the last year compared to the previous time frame. Domestically in the U.K., streaming revenue grew impressively by 63% (noted as “Online” in the financial data) thanks to Spotify and Apple Music.

This catalog contains additional Soul II Soul singles including “Love Enuff,” “Missing You,” “A Dream’s A Dream,” and “Represent.” Combined these tracks brought in 10% of last year’s income. Finally, Chanté Moore’s single “Love’s Taken Over” is also part of this collection, which peaked at No. 13 on Billboard’s R&B chart in 1992. 

Key Drivers

Dollar Age. This offering has a Dollar Age of 29.79 Years. This means the majority of royalties earned in the last 12 months come from songs that have generated royalties for over 29 years. 

The highest-earning track “Back To Life” was released in 1989 and three decades after its release, the song is seeing growth. A high Dollar Age like this suggests stability, longevity and is worth noting as an investor. This can help sustain the asset’s earnings moving forward.

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 60% of this catalog’s income comes from what is noted as “international” which denotes royalties earned outside the United Kingdom including income from streaming platforms. Also, within the United Kingdom revenue from online streaming platforms, Spotify and Apple Music increased significantly year-over-year.