Are you looking for a unique investment opportunity in the music industry? On Royalty Exchange a piece of trap music history was just sold featuring songwriting royalties from OJ Da Juiceman, Gucci Mane, and more.
Royalties provide a consistent income stream that can last for decades, as the songs continue to be streamed, performed, and licensed. Plus, you're investing in something tangible - the intellectual property behind the music - rather than more abstract financial instruments. It's a chance to align your investments with your passions.
Artist and Song Highlights
Let's meet the stars of this royalty catalog. First up, we have OJ Da Juiceman, an Atlanta rap icon who played a pivotal role in shaping trap music.
OJ burst onto the scene with raw, unfiltered tracks that captured the grittiness of street life. His 2013 mixtape cut "No Hook" is a quintessential trap anthem, forgoing a traditional chorus in favor of relentless bars that paint a vivid picture of the trap lifestyle. "No Hook" set the template for countless viral rap hits to follow.
Rewind to 2009, and you'll find two more OJ classics featured in this catalog: "50 Bricks" and "Cop A Chicken." Both tracks appeared on his influential mixtape "The Otha Side of the Trap" and remain fan favorites to this day, racking up millions of streams. "50 Bricks" in particular saw steady growth in recent years, with a 23% CAGR over the past five.
But this collection isn't just the OJ Da Juiceman show - it also features contributions from other trap luminaries like Gucci Mane. Gucci is a living legend who, along with OJ and fellow Atlantans T.I. and Jeezy, is credited with bringing trap music to the mainstream in the 2000s. From his 2005 debut "Trap House" to culture-shifting mixtapes and hit singles, Gucci Mane's influence can't be overstated.
While often seen as a successor to pioneers like T.I., Gucci put his own stamp on the genre, becoming known for his prolific output, memorable adlibs, and flashy persona. Even as trap music has evolved, Gucci has remained ever-present, continuing to impact the sound and style of the genre he helped define.
Other artists featured here, like Gorilla Zoe and Big Yavo, have also made their mark. Gorilla Zoe first gained attention as part of Boyz n da Hood before embarking on a successful solo career, dropping hits like "Hood Figga". Big Yavo, meanwhile, is an emerging name bubbling up from the streets of Birmingham, AL. His song "Rich" recently went viral on TikTok, introducing him to a massive new audience.
The impact and influence of these songs and artists are undeniable, and with the continued growth of streaming, their value is only set to increase over time.
Financial Analysis
Now, the numbers will tell you why this catalog is an intriguing investment opportunity:
Overall Catalog Performance
The OJ Da Juiceman, Gucci Mane, and more catalog have demonstrated impressive financial performance in recent years:
- The catalog has shown remarkable growth rates of 17%, 23%, and 22% over the past three years, respectively.
- It boasts a strong 5-year Compound Annual Growth Rate (CAGR) of 16%, indicating consistent and sustainable growth.
- The catalog's Dollar Age of 12.33 years suggests a stable, long-term earning potential. A higher Dollar Age indicates the catalog has a proven track record of generating revenue over an extended period.
Top 5 Track Analysis
Let's take a closer look at the top-performing tracks within this catalog:
1. "No Hook" by OJ Da Juiceman, released in 2013, saw a 2% growth in the most recent year and has a respectable 5-year CAGR of 9%.
2. "50 Bricks" by OJ Da Juiceman, released in 2009, has experienced consistent yearly growth over the past three years and boasts an impressive 5-year CAGR of 23%.
3. "Cop A Chicken" by OJ Da Juiceman, also from 2009, despite a slight decrease in the most recent year, grew significantly in the two prior years and has an exceptional 5-year CAGR of 78%.
4. Notably, 31% of the catalog's royalties over the past 12 months have come from tracks outside the top 5, showcasing the catalog's diversity and reducing reliance on a small number of songs.
Top 5 Sources of Revenue
1. US Streaming has been the primary driver of the catalog's earnings, contributing an average of around 80% to the overall earnings over the most recent five-year period, with a strong CAGR of 15%.
2. International revenue sources have maintained a steady presence, contributing an average of approximately 8% to the catalog's total earnings over the past five years.
3. Streaming video has emerged as a high-growth area for the catalog, with an impressive CAGR of 49% over the past five years, indicating significant potential for future earnings growth.
These financial metrics paint a picture of a catalog with a proven history of generating substantial royalties, exhibiting consistent growth, and benefiting from a diverse range of revenue sources. The strong performance of key tracks, coupled with the catalog's overall diversity, suggests a solid foundation for continued success.
Investment Structure
This asset listing went fast on Royalty Exchange. It received 14 offers from 4 different investors in just 1 day. Based on the structure of this deal, you will understand why the competition was so high on this asset.
The winning bidder will now collect 100% of the royalty payments until they receive the fixed amount of $36,000. This means that they’ll be the sole beneficiary of the royalties generated by these songs until that level is reached. This means with the sale price of $25,400, the investor will make a return of 41.72% over the course of the deal. Based on the last 12 months earnings without including any continued growth trajectory this catalog is showing, this would be an annualized ROI of 5.47%. Very solid for a guaranteed return.
One unique feature of this investment is the early repayment option. The seller of the royalty asset has the right to buy back the royalties at any time by paying you the remaining balance. For instance, if you've collected $11,500 after two years and the seller wants to reclaim the royalties, they can do so by paying you the outstanding $24,500.
The OJ Da Juiceman and Gucci Mane royalty catalog presents a compelling investment opportunity. With its strong growth metrics, diversified income streams, and the cultural significance of the featured artists, this asset has the potential to generate substantial returns while providing exposure to a unique and exciting asset class.
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