1. Boosie Badazz, Deebaby, and Slim Thug Songwriter Royalties
Sale Price: $7,200
Last 12 Months Earnings: $1,513
Tracks Included: 32
This catalog, featuring notable Southern hip-hop artists such as Boosie Badazz and Slim Thug, offers a snapshot of consistent returns with earnings spanning over six years. Key tracks like Trust Nobody highlight Boosie Badazz's enduring appeal. Despite its relatively modest price tag, this catalog provides steady annual earnings, with a last 12 months (LTM) revenue of $1,513 and a total earnings history of $10,908. In fact, compared to the 3-year average earnings from these songs, the last year's earnings are a 45% increase.
Pros:
- Diverse Catalog: 32 tracks, ensuring income stability across multiple sources.
- Streaming Growth: Streaming accounts for over 90% of earnings, indicating alignment with current consumption trends.
- Long-Term Term: A 30-year contract ensures extended earning potential.
Cons:
- CAGR of 0.71%: While positive, this low growth rate may not attract growth-oriented investors.
- Older Catalog: At 6.75 years of Dollar Age, the earnings stability might come with slower growth.
Why It Sold: The reasonable LTM multiple of 4.76x and proven historical performance likely attracted investors seeking reliable passive income without a significant upfront investment. The 30-year term may have deterred some investors from making offers, but a sales multiple of 4.76x on a 30 year deal with this much consistency in the earnings looks like tremendous value. At the rate of earnings, the investor will potentially earn back their principal $7,200 in less than 5 years and have 25 years of complete profit from this deal. As far as passive income is concerned, this deal has been paying out around $250-$566 every 3 months for the past 2 years, with an average of around $320.
2. Chris Brown, Jack Harlow, and Anderson .Paak Songwriter Royalties
Sale Price: $13,000
Last 12 Months Earnings: $2,033
Tracks Included: 20
This premium catalog is anchored by standout hits like Pitch Black by Chris Brown and Already Best Friends by Jack Harlow. With certifications like RIAA Platinum for Already Best Friends, these tracks have cemented their place in the streaming charts, boasting millions of plays.
Pros:
- High ROI Potential: An LTM of $2,033 paired with a moderate growth rate makes it an attractive long-term investment.
- Artist Popularity: Chris Brown and Jack Harlow's continued dominance in R&B and hip-hop boosts the catalog’s earning consistency.
- Streaming as a Major Driver: Streaming income ranges from 52% to 71% of the total, showing high alignment with industry growth.
Cons:
- Moderate Volatility: Earnings dipped 3% in the most recent year, highlighting potential revenue fluctuation.
- Higher Entry Price: At $13,000, this catalog demands a more substantial initial investment.
Why It Sold: The appeal lies in the catalog’s premium quality, top-charting artists, and consistent streaming performance, making it a safe bet for investors seeking exposure to high-profile assets. A 6.39x sales multiple for a lifetime rights catalog featuring some of the biggest A-list musicians of today is pretty solid value. Especially when you consider the global appeal of these artists which show in the earnings history. The last 12 months earnings are a 6.27% increase over the 3-year average showing that despite a slight dip in the last year, over the course of a longer time horizon there has still been nice growth. All of the artists in this catalog have amassed fan bases that give them distinct amounts of longevity.
3. Kehlani’s Love Language and More
Sale Price: $7,500
Last 12 Months Earnings: $1,166
Tracks Included: 26
This eclectic collection features tracks from Kehlani, Lil Yachty, and KYLE. Kehlani’s sultry Love Language has been a standout, contributing 54% of the catalog’s earnings in the last year. The Dollar Age of 5.82 years indicates the catalog’s earnings are entering a stable phase, promising predictable revenue streams.
Pros:
- Versatile Genres: Spanning R&B, hip-hop, and pop, this catalog is a prime diversification tool.
- Steady Performance: Earnings have stabilized, with Love Language as a top performer generating consistent returns.
- Streaming Revenue Dominance: Over 70% of income stems from streaming platforms, ensuring future growth.
Cons:
- Declining Recent Earnings: A 2024 dip in earnings ($896 compared to $1,410 in 2023) might deter growth-focused investors.
- Shorter Historical Growth: While stable, it may lack the explosive potential seen in newer catalogs.
Why It Sold: This catalog’s versatility, coupled with the reliability of earnings from Love Language, made it an attractive proposition for investors seeking low-risk, steady passive income. Despite growth slowing for this catalog over the past 3 years, the earnings have entered a stability phase and are starting to look extremely consistent. For a 30-year deal, the 6.43x sales multiple looks like pretty good value. As always, the investor can also earn royalties from the catalog as long as they want to within that period and even resell it to another investor for the remainder of the deal if they get a great offer.
Getting Started with Royalty Exchange
For new investors intrigued by passive income from royalties, Royalty Exchange is the gateway to exploring thousands of music catalogs. Whether you’re a fan of Jay-Z’s Empire State of Mind or want to diversify with unique assets like standardized test royalties, the platform offers something for everyone.
How It Works:
- Browse Listings: Explore a wide range of assets, including music, film, and even product royalties.
- Analyze Financials: Review LTM multiples, historical earnings, and growth potential.
- Place Your Bid: Participate in auctions to secure your chosen royalty catalog.
With artists like Ariana Grande, Dire Straits, and Jimi Hendrix on the platform, investors can tap into timeless revenue streams while diversifying their portfolios.
Why Invest in Royalties?
Royalties offer a unique blend of stable income, low correlation with traditional markets, and high yield potential. Whether you’re a seasoned investor or just exploring how to invest, platforms like Royalty Exchange democratize access to one of the best passive income investments available today.
On Royalty Exchange you can sign up as an investor and search through thousands of music catalog listings that include producer and songwriter royalties to some of the biggest songs of the past few decades. Discover why song royalties are one of the best investments to grow your wealth in 2024 and download the free Ultimate Guide To Music Royalties to learn everything you need to know about investing in royalties.
