About The eXchange

About The eXchange, listings, offers, Standing Orders, and more.
February 10, 2021

The eXchange is a public listing of music catalogs available for investors to make offers on at any time, no auction required. Most have List Prices indicating the seller’s sale threshold, but some are open to Best Offers as well.

The listings on the eXchange come from multiple sources.

  • Direct Listings: These are catalogs added to the eXchange by the original rightsholder (typically music artists, labels, and publishers)
  • Secondary Market: These are assets previously acquired on the Royalty Exchange marketplace by other investors who are now offering to resell them to other investors.

Catalogs listed on the eXchange must earn royalties from either ASCAP or BMI, or from publishers with whom we have direct relationships. Assets outside this description can only be listed on the Auction House, but we are adding new capabilities to the eXchange regularly.

Listings

Like auction listings, each eXchange listing contains detailed information about sources of earnings and earnings history. This includes:

  • Earnings History: Typically the last 12 months earnings, unless the catalog is less than a year old, in which case the months available will be listed.
  • Dollar Age: How long the royalties earned in the last 12 months have been earning royalties.
  • Investment Term: How long the royalty stream purchased will remain with the investor post-auction. Either Life of Rights or 10-Year Term.
  • Distributors: The organizations responsible for collecting and distributing the royalties in question.
  • Rights Included: Which royalty types generate the earnings being sold.
  • Interests Included: Which entity’s share of royalties is being sold (typically Songwriter or Publisher).
  • Track List: A link to all the songs included in the catalog

eXchange listings also contain information like the number and size of offers made since listed.

Using The eXchange

The eXchange contains hundreds of assets, so we’ve included several useful filtering tools available to you. These include:

  • A “Sort By” option that will list the assets in order of most recently added, or other factors like List Price, Analyst Benchmark, Offers Made, and more
  • A “Filter By” option that allows you to filter out listings that don’t meet certain criteria, which include the last 12 months earnings of the asset, the age of the songs in the asset, or the number of offers made. You can also save assets by selecting the star button and then filter the market accordingly.
  • A “Hide/Show” option that further refines the filter based on details like Term of the asset, only those with List Prices, and so on.

(Read More: Filtering eXchange Assets)

Making Offers on the eXchange

There are different ways to make offers on eXchange listings.

Accept List Price

The quickest and easiest way to buy eXchange assets is to accept the List Price. This will immediately and automatically initiate a transaction. The seller has already committed to selling the asset at the price listed, and you as the buyer are committing to paying the price listed.

Make An Offer

You can make a manual offer below the List Price to see if the current owner will accept. The owner can accept or reject (or ignore) these offers as they like. Manual offers expire in 24 hours. You can also withdraw an offer at any time if it has not yet been accepted.

(You’ll notice a field for the Analyst Benchmark price. This is an algorithmically derived benchmark we include to provide guidance on what we think might be a fair price guidance based on the catalog performance. That benchmark is only available to All Access investor members.)

To make a manual offer, simply select the asset you’re interested in and choose the clear “Make Offer” to place a custom offer

And then fill in your offer preferences in the resulting popup

(Note: All Access members have a third option of making an offer at the Analyst Benchmark price as well).

Once you place your offer, the owner of the asset is notified and has 24 hours to accept or reject it. If accepted, your offer is considered binding and you will receive notification of next steps to complete the purchase.

Standing Orders

Another option is to place a Standing Order. Standing Orders allow you to place an offer into our system based on the criteria we’ll outline below, and our platform will automatically match your request to assets that meet your preference.

To place a Standing Order, simply navigate to the Standing Orders tab in the Secondary Market, and select the green “Place New Standing Order” at the top right of the screen.

This will open the popup where you can leave your offer criteria. These include:

  • Minimum Dollar Age of the asset
  • The multiple of the asset’s last 12-months’ worth of earnings you’re willing to pay
  • The total amount you’d like to allocate

These orders will be matched to any asset that meet your submitted criteria, either new catalogs submitted by rightsholders using our Know Your Worth app, or to other assets in the Secondary Market held by other investors.

There’s a lot more to consider when leaving Standing Orders, so please read the article below for a more detailed overview:

(Read More: AUTOMATED INVESTING FOR ALL INVESTORS)

Royalty Exchange remains committed to continually improving all aspects of our marketplace. We’ll update this guide and new features and changes are made to listings over time. If you ever have any questions or suggestions, please don’t hesitate to reach out.

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