Sound Recording Royalties: Instrumentals + Covers
Earn digital download and streaming royalties for a catalog of sound recordings. This catalog includes covers of popular American and Latin music, as well as instrumentals, karaoke, and background tracks.
- Closed May 14, 2018
- Life-of-rights term
- Sound Recording
- Believe Digital
About This Auction
- $5,788
- Sound Recording
- Sales
- No
- Distributors
- Believe Digital
- Sources
- Internet Streaming & Digital Downloads
- Life of author + 70 years
- First Payment
- May 2018
- Starting Price
- $17,000
- Bidding Increment
- $500
- Closing Price
- $39,000
- End Date
- May 14, 2018, 3:03 PM MDT
- Buyer Fees
- None
Description
Invest in these digital download and streaming royalties generated by a huge catalog of . In the last 12 months, this asset earned $5,788.
The current catalog includes albums, ringtones and music videos of high-quality cover songs and instrumental recordings. These span from classic American hits to current Latin American pop hits. Many of the recordings include multiple versions of popular songs, including cover versions, instrumental versions, a cappella versions, and karaoke versions.
Digital and streaming royalties are growing worldwide, and this catalog is driven by digital revenue. Earnings come from multiple countries and sources, including Spotify, iMusica, Google, and more. Streaming is the primary income source with 84% of historic earnings. Spotify alone contributes 52% of this catalog's income over the last 12 months.
The recordings are created by Viel Music, an emerging multimedia production company. The works are available to stream and download in more than 350 online music outlets through Believe Digital, one of the largest digital music distributors in the world. Please view the “Media” tab to listen to some samples from the catalog.
Key Drivers
Diversification. Revenues are widely distributed for this catalog of over 4,000 albums and upwards of 20,000 titles. No single song makes up a significant portion of its earnings, meaning you're not tied to just one title to produce royalties. This means built-in diversification. The asset also earns from over 100 countries, again providing a diverse income mix.
Spotify. Spotify was the largest individual source, contributing 55% of the catalog’s revenue to date. The streaming service is a dominant force in the market and recently made headlines for their public filing. Spotify's number of active monthly users and subscribers are increasing which is a leverage point for this catalog.
What is being sold?
100% of the seller’s interest in the digital sales and streaming royalties earned by the current and future in the rights owner’s Believe Digital accounts. The accounts are: Liev Instrumentals, Smges, Smges Brazil, and Smges Latin. Royalties earned from the rights owner’s direct licensing and sales of ringtones on iTunes are excluded.
The interest in the royalties includes a security interest in the underlying sound recording copyrights. The buyer may exercise its security interest if the rights owner becomes insolvent or otherwise unable to license the or collect royalties for the catalog.
How does this asset make money?
Every time a song, ringtone, or music video from this catalog is streamed or downloaded from an online music service, you'll earn royalties. This catalog is distributed in over 350 music outlets worldwide, including Spotify, iMusica, Amazon, Google, & Deezer.
Royalty Exchange will administer the payments from Believe to the winning bidder. The next payment is scheduled for May 2018.
Unless the buyer opts out of the opportunity, this listing will automatically be relisted as a "Buy It Now" sale at a premium over the closing price. The relisted asset will remain live until it is purchased, or until its first royalty distribution. This gives the winning bidder the chance to earn an immediate return on the asset while awaiting the first royalty payment.
About the Royalty Distributor
Believe Distribution Services is the leading fully independent digital distributor and label services provider for artists & labels worldwide. They provide dedicated label & international campaign management, trade & digital marketing services, comprehensive video management & distribution, synchronization, and neighboring rights.
Historic royalty income is no indication of future royalty income. Future royalty income is dependent upon future sales and licensing revenue generated by the sound recordings or compositions associated with this listing.
Financials
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Earnings over time, and where they came from.
FAQ
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Answers about the term, the bidding and the royalties.
Media
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Videos, audio and images from the catalog.
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