Ultimate Guide to Buying Music Royalties: Chapter 7

Chapter 7: Recent Auctions on Royalty Exchange

Each week at Royalty Exchange, intellectual property holders bring their assets to the open market. Royalty Exchange recently helped sell some terrific intellectual property assets tied to some iconic and chart-topping songs.

Here are a few top examples of recent successful auctions.

Arnakata Music Catalog Paid $16,000 Each Year

An investor was able to tap into a catalog that featured royalty streams from the Eurythmics, the Bee Gees, Judas Priest, The Tourists, the Flamin Groovies.

This auction included Mechanical, Performance, and Digital royalties.

Over the last four years, this catalog paid out, on average, more than $16,000 annually and had been paying out consistently for 17 years. The track record of consistent income makes this catalog particularly interesting to investors looking for income opportunities.

This catalog featured five songs that generated 80% of the annual revenue:

“Love is a Stranger” – The Eurythmics: Originally released in the United States

in 1983, this was the second U.S. single from the band’s breakout album, “Sweet Dreams (Are Made of This).” It would go on to peak at No. 6 in the United Kingdom and No. 23 in the States. It would eventually chart in more than a dozen countries worldwide. The band re-released the single as part of their greatest hits album in 1991.

“Beyond the Realms of Death” – Judas Priest: Released in 1978 off the heavy metal giant’s “Stained Class,” the nearly seven-minute song is widely considered one of the album’s highlights. The song would go on to be featured on at least half a dozen other Judas Priest albums

“Just Want to be Myself” – The Drones: At the vanguard of the British punk movement, The Drones featured this song on their debut album in 1977. It was re- issued in 1993.

“So Good to be Back Home” – The Tourists: This song broke into the top 10 in the United Kingdom for this British rock band in 1980. This short-lived group featured both Annie Lennox and Dave Stewart, who would go to international superstardom later in the 1980s as The Eurythmics.

“Songbird” – The Bee Gees: This country-infused ballad appeared on the band’s 13th studio album in 1975, which was also the group’s last before diving head first into the dish movement.

Overall, this catalog features more than 330 songs spanning decades and genres, churning out steady royalty payouts twice annually for almost 20 years.

Smash Country Hit – "What We Ain’t Got"

Artist Jake Owen recorded the song “What We Ain’t Got” in 2013 with the help of writer Travis Jerome Goff. It was one of the most popular songs on Owen’s fourth studio album “Days of Gold,” which received a five-star review from Got Country Online.

The ballad is about the singer’s desire to get back a person whom he loves but has left him. Owen had said that he thought releasing the song was a risk.

The musician is best known for his popular, up-tempo songs about partying. Music critic Markos Papadatos of Digital Journal rated the song 4.5 out of 5 stars. Papadatos praised the lyrics and Owen’s “rich yet haunting baritone vocals.” The song was part of a heavy rotation on the radio.

“What We Ain’t Got” started on the Billboard Hot 100 at No. 95 in January 2015. Since then, fans have watched the song 6.5 million times on YouTube.

The songwriter share generated $9,734 from sources over the last 12 months not tied to terrestrial radio. The $50,500 sale for these songwriter rights was five times more than the annual income stream.

Royalty Payments from Music Used in Over 400 Television Shows

It’s not just commercial music. Production music is a vital part of the television industry. But television viewers often overlook background production music.

The songs heard in the background, during scene transitions, and in opening and closing credits offer royalty payments to the owners of the intellectual property. One of the most lucrative deals of 2016 came with the sale of the rights to music from 400 different television shows.

These songwriter performance royalties are tied to songs from shows like “Botched,” “E News Daily” and “Keeping Up with the Kardashians,” and on networks like NBC, VH1, National Geographic, HBO, CNN, Bravo, and more.

This form of copyright can generate solid income for the owner of the intellectual property. In 2015 alone, the catalog generated $25,631.87.

Also, the auction winner partnered with industry veterans to boost awareness of the music and to boost licensing for the catalog. These experts will market the catalog in the future to other shows and potential outlets.

Interested in learning more? Download the complete Ultimate Guide to Buying Music Royalties
Download Now