When we rebooted Royalty Exchange last year, we did so with a belief that both investors and rightsholders alike were tired of the closed-door dealmaking that defined royalty transactions in the past. If the results of 2016 and our first month of 2017 are any indication, our model of an open, transparent marketplace has resonated loudly with both groups.
This January, Royalty Exchange celebrated two significant milestones in our evolution, holding more auctions and raising more money for rightsholders than in any single month in our history. Over the course of the month, we conducted and closed 12 auctions, which collectively raised over $587,000.
That’s some great momentum to start off the new year. Here’s a quick look at the highlights of the month:
The top-grossing auction of the month was for a production music catalog with placements on networks like CBS, MTV, HBO, Fox Sports, National Geographic, and more, for $205,000. A notable runner-up was a catalog that included the hit #1 song “Lotus Flower Bomb” by Wale feat Miguel, for $107,500
The auction for songwriter royalties from a catalog of hip-hop music by popular artists such as Rick Ross and Kevin Gates sold for four times the original asking price, from $7,500 - $31,000. Another two auctions closed at three times the asking price, while six more than doubled the original offer.
The outperformer of the month hands down was the auction for the performance royalties to a pair of tracks recorded by hip-hop icon Dr. Dre, which closed at a stunning 10x multiple over its past 12 month's earnings, closing at just under $20,000.
In January, we launched a new initiative called "Pay It Forward" that gives anyone selling royalties on our platform the ability to automatically donate a portion of their proceeds to various charitable organizations, along with a match from us. Our launch partners for this program include MusiCares, Music For Relief, and the ASCAP Foundation.
- Investors Are Poised To Disrupt Music Funding (Hypebot 1/23/2017)
- How the 'eBay for music rights' has helped musicians raise $4.2M in less than a year (Built In Colorado 1/20/2017)
- Royalty Exchange is revolutionizing the buying and selling of music royalties (Magnetic Magazine 1/11/2017)
- Investing in Royalties from Music Artists (The Vampire Squid 1/8/2017)
That's quite a strong month. What's even more encouraging is the strong year that it followed.
In 2016, Royalty Exchange rebooted the entire marketplace with new ownership, new management, and a renewed focus on openness and transparency. After a short pause in activity early in the year to refocus the execution of our vision, auctions began again in March.
For the year, even with that shortened timeframe, we conducted 78 auctions, which collectively raised over $4.2 million for the artists, songwriters, labels, and publishers participating. We saw steady increases in both bidding participation and investor registration, launched the first-ever chart ranking the top songwriters behind the biggest hits of the week, and much more.
But enough looking back. Our eyes are firmly fixed on our future goals, and look forward to breaking new records in the months ahead. We have a number of new features and services planned which we hope to tell you about soon. Our staff will be more active in the community, both online and at various events in the industry. And of course we'll continue to update our Listings page with exciting new royalty investment opportunities on a week-to-week basis.
Thank you to all the rightsholders and investors who have made Royalty Exchange the go-to royalty marketplace in the world.