From "Sign of the Times" to Sign of Success: Investing in Pop Royalties
When Harry Styles released his self-titled debut album in 2017, it was a bold departure from his boyband beginnings with One Direction. The album, led by the cinematic single "Sign of the Times", topped global charts and cemented Styles as a solo powerhouse. Fast forward to 2021, and his publishing royalties from the album sold for $540,000 on Royalty Exchange—proof that music catalogs from pop icons remain enduring and profitable.
But what exactly makes this catalog a winning investment? Let’s break down the numbers and why royalties from Harry Styles’ music continue to strike the right chord with investors.
What Was Sold: A Look at the Asset
- Sale Price: $540,000
- Last 12 Months' Royalties: $68,874
- 3-Year Average: $74,900
- Total Earnings Since 2017: $391,338
- Dollar Age: 4.48 years (still relatively “young” for a catalog)
- Tracks Included: 8 tracks from Harry Styles' debut album
- Term: Life of rights (life of the author plus 70 years)
This sale includes publishing royalties from top songs like "Sign of the Times," "Woman," and "Kiwi." These royalties come from performance, streaming, mechanical, sync placements, and digital downloads.
The Financial Breakdown
1. Revenue by Track:
- Sign of the Times: $27,714 (40% of last year’s royalties)
- Woman: $9,555 (14%)
- From the Dining Table: $8,802 (13%)
- Kiwi: $8,643 (13%)
- Carolina: $5,668 (8%)
- Other Tracks: $8,493 (12%)
With nearly 40% of the royalties coming from "Sign of the Times", this catalog benefits from a standout hit with consistent earnings.
2. Income by Source:
- Streaming: $25,647 (37%)
- Public Performance: $15,740 (23%)
- Mechanical (Sales): $12,942 (19%)
- Sync Placements: $8,661 (13%)
- Digital Downloads: $3,334 (5%)
Streaming remains the dominant source of revenue, which aligns with the global shift toward digital music consumption. However, mechanical royalties from physical and digital sales continue to contribute nearly 20% of earnings.
Why Investors Were Drawn to This Auction
1. Cultural Relevance and Longevity
Harry Styles' debut solo effort earned critical acclaim and commercial success, debuting at No. 1 on the Billboard 200 with over 230,000 copies sold in its first week. The album's cultural impact was amplified by Styles' global tours, music videos, and cross-genre appeal.
Since its release, "Sign of the Times" has racked up 1.6 billion Spotify streams and been featured in high-profile sync placements, including commercials and dramatic TV scenes.
2. Diversified Revenue Streams
This portfolio isn’t reliant on streaming alone. Income from public performances, mechanical sales, and sync placements creates a more balanced royalty stream. Sync placements, in particular, can result in significant one-time payouts, boosting annual revenue.
3. High-Earning International Markets
International sources contributed over 53% of royalties in the last 12 months, indicating that Styles' music enjoys global appeal—particularly in markets like the UK, Australia, and Europe, where fans continue to embrace his solo work.
Bidding War Breakdown: From $475,000 to $540,000
The auction attracted 13 offers from 5 investors, highlighting strong interest in this catalog:
- Initial Offer: $475,000 (rejected)
- Highest Rejected Counteroffer: $572,235
- Final Accepted Bid: $540,000
The competitive back-and-forth underscores the perceived value of Harry Styles' royalties and investors' belief in the album’s staying power.
Why Music Royalties Are an Attractive Passive Income Investment
Pros:
- Consistent Passive Income: Royalties from streaming, sales, and sync placements provide regular payments.
- Cultural Longevity: Pop hits with a loyal fanbase—like Styles' tracks—continue to generate royalties long after their initial release.
- Diverse Income Streams: Revenue from both domestic and international markets creates stability.
- Life of Rights: The asset’s term lasts for the life of the author plus 70 years, ensuring long-term payouts.
Cons:
- Market Dependence: Changes in streaming platform payouts or licensing agreements could impact future earnings.
- Top-Heavy Catalog: Nearly 40% of the royalties come from one track ("Sign of the Times"), which introduces some concentration risk.
- Competition for Sync Placements: While Styles' music is in demand, sync deals can be unpredictable.
Why the Winning Bidder Likely Saw Long-Term Value
- Global Star Power: Harry Styles has transcended his boyband roots, becoming one of the most streamed artists globally. His continued success bolsters the earnings from his earlier works.
- Chart-Topping Milestones: His debut album went platinum in multiple countries and earned awards, including the Brit Award for British Album of the Year nomination.
- Steady Streaming Growth: With streaming driving 37% of the royalties, this catalog benefits from the overall growth in subscription-based music services.
Final Thoughts: Pop Music Royalties as a Power Move
The $540,000 sale of Harry Styles' publishing royalties illustrates the lasting value of iconic albums. With diversified income streams and cultural staying power, this investment represents more than just financial gain—it’s a stake in the legacy of one of pop music’s biggest stars. Song royalties by legendary artists like Harry Styles are a collector's item as well. Just as people collect sports cards, artifacts, and other items, owning a piece of music history is priceless.
If you're a huge fan of Harry Styles or just want to get started with music royalty investing, now you can do so on Royalty Exchange. 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.
