Sound Recording Royalties for The Neighbourhood

Ten years after most of these songs first landed, they are earning more, not less. The Neighbourhood broke out of Los Angeles in 2013 with a moody, black-and-white sound built on indie rock, R&B, and dream pop. The band's biggest commercial event came years after the fact: TikTok discovered the Wiped Out! deep cut "Daddy Issues" and made it one of the band's most streamed songs. That kind of second life is what has made this catalog quietly grow into a bigger asset with age, not a smaller one.

This sale is the sound recording royalties on 17 Neighbourhood masters distributed by Sony Music Entertainment. Most come from the 2015 album Wiped Out!, six from a 2014 mixtape, and one from the 2018 self-titled album. LTM earnings are up about 9% from last year, and the catalog has landed between roughly $15,300 and $18,500 in each of the last five full years. Streaming does 91.6% of the work: Spotify 53.8%, Apple Music 16.9%, TikTok 6.9%, YouTube 6.5%.

The audience keeps getting wider. US listeners fund 55.6% of income; the other 44.4% comes from abroad — the UK (11.7%), Germany (6.0%), Canada (3.6%), Australia (2.2%), France (2.1%), and Brazil (1.8%) at the top. New listeners keep finding these songs on multiple platforms and in multiple countries at once, and that steady inflow is a big part of why annual earnings keep drifting up.

The lead tracks trade places over time. "Daddy Issues" (31.1% of LTM) and "Baby Came Home 2 / Valentines" (23.8%) together produce 55% of income. "Daddy Issues" is softening about 16% year over year as its viral peak cools. In the opposite direction, "Baby Came Home 2 / Valentines" is up 65% year over year and is closing in on the top spot. Behind them, "The Beach," "Prey," and "Cry Baby" are growing at high-single to mid-teens rates, with "#icanteven" up more than 50% on top of that. A year ago, "Daddy Issues" earned more than 2.5 times what "Baby Came Home 2 / Valentines" did. Today it's about 1.3 times.

For an investor, this is a catalog that has already shown it can keep finding new listeners a decade after these songs first came out. It runs on streaming, earns everywhere, and its lead tracks rotate as one cools and another rises. The primary risk is track concentration: the top two songs drive over half the money. The offset is that "Baby Came Home 2 / Valentines" is already rising to fill the spot "Daddy Issues" is stepping back from, and every other song in the top six is growing behind them.

The Neighbourhood formed in Newbury Park, California, in 2011 and broke through with their 2013 debut album, establishing the black-and-white identity and blend of indie rock, alternative R&B, and dream pop that has defined the group since.

Six tracks come from a 2014 mixtape and represent the band's early sound: "#icanteven" (featuring French Montana), "*NSTYNCT" (with Skeme and OG Maco), "Rain," "T$RL," "To," and "U&I."

Ten tracks come from Wiped Out!, the 2015 sophomore album that anchors the catalog: singles "R.I.P. 2 My Youth," "The Beach," and "Prey"; the deep cuts "Daddy Issues," "Baby Came Home 2 / Valentines," "Cry Baby," "Ferrari," "Greetings from Califournia," and "Single"; and the title track. Wiped Out! has aged into the band's most commercially productive project, driven largely by "Daddy Issues" becoming a defining streaming-era song for the group.

Rounding out the catalog is "#000000 & #FFFFFF," released February 10, 2018, on the band's self-titled album.