Introduction: What Are Royalties and Why Invest in Christian Music?
Royalties provide an excellent way to earn passive income through the ongoing use of intellectual property. On Royalty Exchange, investors can purchase royalty streams tied to songs, movies, and even niche assets like religious music. In November 2020, a publishing royalty catalog featuring some of the most popular contemporary Christian and worship songs sold for $900,000. This article breaks down what made this catalog so valuable and explains how royalty investing works.
Key Details of the Worship Music Royalties Sale
- Sale Price: $900,000
- Catalog Dollar Age: 5.51 years
- Top-Earning Track: "The Lion and the Lamb" by Bethel Music and Big Daddy Weave
- 12-Month Royalties: $156,393
- Investment Term: Life of rights + 70 years
- Distribution Frequency: Quarterly payments
This catalog primarily generates royalties from mechanical, performance, and sync rights, with an additional unique revenue stream from Christian Copyright Licensing International (CCLI).
Why This Catalog Caught Investor Attention
1. The Influence of "The Lion and the Lamb"
- Released: 2015 by Bethel Music on their album Have It All.
- Performance: The song became a staple in church worship services globally.
- Streaming Stats: Over 73 million Spotify plays across all versions.
- Accolades:
- Big Daddy Weave’s version peaked at No. 2 on the Billboard Christian Airplay Chart.
- The album Beautiful Offerings reached No. 4 on Billboard's Christian Albums Chart and made it onto the Billboard 200.
As one of the most beloved worship songs, "The Lion and the Lamb" continues to earn royalties through digital streams, radio, and live worship performances.
2. Reliable Income from Christian Copyright Licensing International (CCLI)
- CCLI provides licensing solutions for churches, ensuring artists are compensated when their music is used in services.
- This catalog earned 65% of its annual royalties from CCLI, averaging $100,000+ per year between 2017 and 2019.
- CCLI royalties are considered stable and predictable compared to more volatile streaming royalties.
3. Song Diversity and Longevity
In addition to "The Lion and the Lamb," the catalog features:
- "Where You Are" by Leeland (2014)
- "Christ Be All Around Me" by Leeland and All Sons & Daughters (2014)
- "Stronger" (notable for its crossover appeal)
This diversity across genres within the Christian music space increases the catalog’s appeal and resilience.
How Does CCLI Licensing Work?
CCLI provides annual licenses to churches and worship organizations, covering:
- Song lyric projections
- Streaming live worship sessions
- Copies for congregational use
Whenever churches use songs from the catalog in services or events, the original songwriters and publishers receive compensation. This ensures the catalog generates consistent royalties even outside commercial streaming platforms.
Pros and Cons of Investing in Worship Music Royalties
Pros:
- Quarterly Passive Income: Investors receive earnings every three months from multiple streams (streaming, CCLI, sync deals).
- Cultural Longevity: Worship music remains in use for years, with popular songs gaining evergreen status in faith-based communities.
- Unique Licensing Benefits: CCLI licensing provides consistent revenue separate from commercial markets like Spotify and radio.
- Cover Song Compounding: A lot of massive faith based songs get covered by other musicians, and since this catalog includes the musical composition rights, any cover that is put out by other artists will pay to this catalog owner.
Cons:
- Market Dependence: While Christian music has a loyal following, any shift in trends or licensing regulations could impact future income.
- High Purchase Price: The $900,000 price may limit accessibility for smaller investors.
- Matching Rights: The publisher holds a right to match the winning bid, which may delay final ownership for investors unfamiliar with this process.
Why the Winning Bidder May Have Found This Catalog Appealing
- High Royalty Share: The catalog's top song generated nearly 80% of recent earnings, demonstrating a strong revenue driver.
- Cross-Version Payouts: Each time a new artist records a version of "The Lion and the Lamb," or any other songs in this catalog, the original copyright holder earns royalties.
- Accolades and Album Success: The songs have received nominations and charted on major platforms like Billboard, adding prestige and revenue potential through future sync licensing.
How to Get Started with Royalty Investing on Royalty Exchange
If you're intrigued by the idea of earning passive income from royalties, here’s how you can begin:
- Create an Account: Sign up on Royalty Exchange for free.
- Browse Listings: Explore publishing and sound recording royalties from various genres, including Christian, pop, and hip-hop.
- Analyze the Financials: Each listing provides detailed financial data to help you evaluate the investment.
- Bid or Buy: Place your bid or use the "Buy Now" option if available.
- Start Earning: Once the purchase is finalized, begin receiving royalty distributions.
Conclusion: Is Worship Music a Good Passive Income Investment?
Investing in Christian and worship music royalties can be a lucrative way to earn passive income. The $900,000 sale of this publishing catalog illustrates the financial value of owning rights to globally cherished songs like "The Lion and the Lamb." With steady revenue from CCLI licensing, performance royalties, and streaming, this catalog is an example of a high-potential investment for anyone looking to diversify their portfolio with faith-based music assets. Song royalty acquisitions can be extremely lucrative investments as you can see from this example. Invest in music today and reap the benefits of earning passive income from music rights whose value is independent of macroeconomic markets. Discover why song royalties are one of the best investments to grow your wealth in 2025 and download the free Ultimate Guide To Music Royalties to learn everything you need to know about investing in royalties.