Television Music Portfolio Sells for 8.5 Times Valuation

Aug 16, 2016

A portfolio of more than 100 background songs used in popular television shows sold at auction for $15,750. The closing price was roughly 8.5 times the amount of royalties that the asset has generated over the last 12 months.

The portfolio includes songs used in popular shows including NBC’s Access Hollywood, Discovery Channel Canada’s Daily Planet, and Fox Sports’ programming. The catalog also features songs from television shows including Run’s House and Botched.

It was a landmark deal for the seller and Royalty Exchange.

The deal gave the seller — musician Tony Brock — the option to re-purchase the royalty share for twice the final auction price within two years of the auction close date.

Should Brock exercise this option, the buyer will be able to double their investment. That option gave Brock peace-of-mind for the future.

Brock had a number of other options to sell his royalties. However, he wanted an option to buyback his catalog at a later date. Royalty Exchange and its investors can give sellers the option to buyback their portfolio within two years at up to 100% the selling price.

“I was looking at other options, but I did not want to lose my catalog,” said Brock. “I was interested in what Royalty Exchange is doing. I have a chance to buy back my catalog, and that’s a great feature.”

Brock discovered Royalty Exchange from an industry article about musicians who had previous success selling royalties on this platform. He was intrigued by the past success of other writers and producers who have used Royalty Exchange.

This includes Tommy Coster, who sold his BMI writer’s share of public performance royalties for a catalog of 249 songs for $80,000.

“I thought, if Tommy Coster can do it, I can do it,” Brock said.

He spoke of a negative experience in the past when he sold his royalty streams.

“I’ve been trying to find a deal, but I got burned on my last sale,” he said. “I did a deal with another company almost a decade ago, and they literally burned me. I think I lost out on a lot of royalty money. It was a tough lesson. I had offered to buy it back, and they wanted ten times what I sold it to them for.”

That buyback option within two years offers win-win potential for both the buyer — who will generate royalties over two years — and Brock, who is very interested in reclaiming these assets.

Brock has a number of plans to use his proceeds and further advance his career. He plans to travel to Europe and further his DJ career. He also has several television projects in the works.

Brock offered high praise for the process. “I believe that Royalty Exchange is one of the best opportunities out there by far. It gives you a chance to get a fair value for what your royalty stream is worth.”

He also found that the auction method was much better than the “closed-room” deals that have dominated the industry in recent decades. With 71 participants, the auction process helped establish a truer market value.

That's a huge benefit to musicians, artists, and intellectual property holders.

“I think that it’s great that many people will determine the value,” he said.

Brock is excited about the opportunity to purchase his catalog in the future. For now, he's looking forward to his next step.

“Now I have the money to go to Europe and really give my DJ career a shot.”

Are you interested in putting your royalties up for auction to finance your next album or project? You can receive a complimentary royalty valuation consultation from the team at Royalty Exchange.

Learn more, right here.