Acquisition #2: Recognizable Gold & Platinium Artist

Description

This catalog’s got star power! It features Grammy- nominated, multi-Platinum and Gold-selling artists ranging from country to rock to pop. In the last year, this asset generated $10,833 in royalties.

Aside from the catalog’s well-known artists, it also earns from a unique source. The seller is a background musician on these recordings and receives non-featured performer digital performance royalties. AFM & SAG- AFTRA Intellectual Property Rights Distribution Fund -- a non-profit organization that distributes royalties to session musicians and background vocalists -- pays this catalog's royalties annually.

This collection is comprised of 14 songs from eight different artists. Beginning with the largest income source, we have “America’s Sweetheart” from soulful country-pop artist Elle King. The song brings in 27% of historic income. Released in 2016, the track reached No.

14 on the Billboard Adult Top 40 and No.10 on Hot Rock Songs. The track is her second most popular on Spotify with over 26 million spins.

Avril Lavigne’s “Here’s To Never Growing Up” follows with 20% of the catalog’s revenue. The Platinum- certified track charted in 23 different countries and has garnered 62 million plays on Spotify to date. Rounding out the top three-earning titles is the Platinum-selling “Waiting For Superman” from the contemporary rock band Daughtrywith 18% of royalties.

Another noteworthy track included in this sale is “Human” from Christina Perri. Arguably, the most successful single in the catalog, it went double-Platinum, hit No. 10 on Billboard Hot 100 and has over 144 million spins on Spotify. Finally, there is “Acapella”
by Karmin with 15% of royalties and “Best I Ever Had” performed by pop-rock songwriter Gavin Degraw.

Key Drivers

Streaming. This catalog contains two of the top three most-streamed genres of 2017. According to BuzzAngles 2017 Music Report, rock titles were the second most- streamed songs at 19.3%, with pop titles as the third most-streamed songs with 15.6%. Since the vast majority of these AFM & SAG-AFTRA royalties come from digital streaming (like Spotify and Pandora), it’s worth noting that the titles are among the top three most- streamed genres.

Sirius XM. The CRB recently increased the rates for the satellite radio service Sirius XM. According to SoundExchange press release, Sirius XM rates will increase by more than 40%, from 11% of revenue to 15.5% of revenue, effective January 1, 2018. Sirius XM is the only satellite radio service in the United States and reported revenues of $5 billion in 2016." Performances of works in this catalog on Sirius XM will benefit from the growth in that royalty rate. and link to the SoundExchange statement.

Included Artists. Not surprisingly, the star power within this catalog is an attractive feature. Avril Lavigne is an eight-time Grammy-nominated artist with over six- million monthly listeners on Spotify. She is also slated to release a new album (her first in four years) sometime in 2018, which can have a positive effect on an artist’s back catalog.

Elle King is rising star with her debut studio album Love Stuff and a fellow Grammy-nominee. Daughtry is a multi-Platinum selling group that currently has a tour scheduled through April 2018. A tour can help reinvigorate existing fans and bring in new listeners. This catalog contains a diversity of artists and their accompanying accolades.

HOW DOES THIS ASSET MAKE MONEY?

The vast majority of royalties come from digital streaming on platforms like Spotify, Pandora, Google Play, and Sirius XM Radio. Each year, AFM & SAG- AFTRA calculates the share of the total royalties for songs included in this catalog, collected for the non- featured performers’ fund and distributes royalties accordingly. AFM & SAG-AFTRA makes payments once a year at the end of April. Royalty Exchange will administer the payments to the winner of this auction on a yearly basis and the first distribution you will receive is April 2019 to be paid in May 2019.

Contact

Tel: (416) 987 0298

Address: 55 University Ave, Suite 1805

Toronto, Ontario M5J 2H7

tim@musicroyaltiesinc.com

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