British Hip-Hop Producer Royalties
Collect sound recording earnings from a No. 1 hip-hop track performed by British artists Professor Green and Emeli Sandé.
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The Theoretical IRR is a formulaic guideline based on an extrapolation of the normalized, historical earnings trend of the catalog. The Theoretical IRR is not a guarantee of future performance. It should be used for comparison purposes only. Each catalog has its own risk factors and the Theoretical IRR is not based upon a specific analysis of this catalog. Click here to view the basis for all Theoretical IRR calculations.
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.
| Starting Price: | $7,000 |
| Bidding Increment: | $75 |
| Closing Price: | $16,075 |
| End Date: | Apr 12, 2021, 3:00 PM MDT |
| Dollar Age: | 9.45 Years |
| Last 12 Months' Royalties: | $1,475 (See Note Below) |
| Investment Term: | Life of author + 70 years |
| Distributors: | Universal Music Group (United Kingdom) |
| Rights Included: | Sales, Streaming, Sync |
| Interests Included: | Producer (World) |
| Track List: | |
| First Distribution (paid 30 days from receipt): | September 30, 2021 |
| Distribution Frequency: | Biannually |
| Buyer Fees: | 1% of closing price or $500 (whichever is greater)ठ|
‡ Investors placing the opening bid on any listing pay no buyer fee if they win the resulting auction, a savings of 1% off the final price (minimum $500). All Access members who already receive this discount will be rewarded with a cash rebate equal to the buyer fee.
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What rights are included?
| Musical Composition | Sound Recording | |||||||
|---|---|---|---|---|---|---|---|---|
| Copyrights included? | — | No | ||||||
| Rights: |
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| Sources: | Internet Streaming, AM/FM & Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements & Performances, etc. | Internet Streaming, Satellite Radio, Digital Downloads, CD Sales, TV/Film/Commercial Placements, Samples, etc. | ||||||
| Distributors: | — | Universal Music Group |
Description
Up for bid are producer royalties generated from British rapper Professor Green, singer-songwriter Emeli Sandé, and rock band You Me at Six.
As the winning bidder, you’ll collect streaming, sync, and download royalties for the lifetime of the copyright for the included singles and accompanying album. Streaming, in particular, pays a greater share of revenue to sound recording royalties over composition royalties.
FINANCIAL HIGHLIGHTS:
Streaming (both ad-supported and subscription) generated nearly half of the catalog’s earnings — 41% over the last 12 months. Subscription streaming is the dominant of the two, alone accounting for 38% of the last 12 month’s total earnings...up 8% compared to the prior year.
Sync royalties are the second highest-earning source with 28.3% of last year’s returns — an increase over the year prior thanks to sync placement for “Read All About It.”
You’ll also notice a spike in earnings in H1-2020. This is the result of a $332 first-time Facebook payment for prior periods. It’s unlikely other payments like this will occur again, but if it does the winning investor will be entitled to them.
ABOUT THE CATALOG:
This offering’s top-producing song with 92% of last year’s earnings is “Read All About It” from British hip-hop artist Professor Green with vocals from British singer-songwriter Emeli Sandé.
Released in April 2011 on At Your Inconvenience, the track debuted a No. 1 on the UK charts, spent two weeks in the top spot, and is certified Platinum in the UK. This catalog also features a half-Italian version of the song ("Read All About It (Tutto quello che devi sapere)") which was released with Italian artist Dolcenera.
Also included is "Rescue Me" is a song by British rock band You Me at Six. The song features vocals from Chiddy, one-half of the American hip-hop duo Chiddy Bang.
Key Drivers
Streaming Growth Worldwide. According to IFPI’S Global Music Report 2021, subscription streaming revenues for recorded music increased 18.5% over the previous year. That’s the sixth consecutive year of growth, totaling 443 million paid subscription accounts worldwide. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues.
Multiple Income Streams. The winner of this auction can receive royalties from various streams:
- Sales: Royalties paid to artists and producers when a recording is sold, which can be downloaded (on a platform like iTunes), as well as physical copies being sold (such as a C.D.).
- Streaming: Royalties paid to artists and producers when a recording is streamed “on-demand” (like Spotify or Apple Music for example).
- Synchronization: Royalties paid to artists and producers for the licensing of a recording in music for a movie, TV show, or commercial.
EARNINGS, EXCHANGE RATES & FOREIGN TAX WITHHOLDING
Royalties for this asset are paid and reported in Euros. To calculate the payments in U.S. Dollars, Royalty Exchange applied historical foreign exchange rates (via X-rates.com) using the average rate of the distribution quarter.
The future royalties will be paid to Royalty Exchange in Euros, converted to U.S. Dollars upon receipt, and then paid in U.S. Dollars to the winning investor. Assets paid in foreign currency entail additional risk as foreign exchange rate changes will cause fluctuations in future cash flows.
Additionally, because the royalty payments originate in the United Kingdom, the purchaser may be subject to withholding taxes, depending on where they live. You can learn more about foreign tax withholding here. Since all investors’ tax situations are different, please consult your tax advisor if you have questions on foreign withholding.
About the Royalty Distributor
Universal Music Group is an American global music corporation that is a subsidiary of the French media conglomerate Vivendi. UMG's global corporate headquarters are located in Santa Monica, California. It is considered one of the "Big Three" record labels, along with Sony Music and Warner Music Group.