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Investing Update & Analysis
Royalty Sales

Shrek Music Royalties Auctioned For $533,000 in Heated Bidding War on Royalty Exchange

Explore the auction that saw Shrek music royalties sold to an investor for half a million dollars.

Written by
December 2, 2024
5 min
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A smart investor recently walked away with a piece of cinematic history, acquiring a large piece of the music royalties for the beloved Shrek franchise in a competitive auction on Royalty Exchange. This sale, which saw a staggering 66 offers from 5 investors, highlights the lucrative and increasingly popular world of music royalty investing.

The Allure of Evergreen Assets

The Shrek catalog is a prime example of an evergreen asset in the music royalty space. These assets generate consistent income for years, even decades, due to their enduring popularity and cultural impact. The Shrek franchise, with its iconic characters and quotable lines, has proven its staying power, captivating audiences worldwide since its debut in 2001.

What makes this asset particularly attractive is the diverse range of income sources. Royalties are generated not just from the films themselves but also from:

  • TV airings
  • Online streaming of the films and soundtracks
  • Theme park rides
  • Use of the music in other TV shows, films, and commercials.

The catalog includes royalties from the four main Shrek films, the holiday special Shrek The Halls, and any other instance where the music is licensed.

Why the Frenzy?

The heated bidding war for the Shrek music royalties showcases the robust demand for music royalty investments. Several factors contributed to the intense competition:

  • Proven Track Record: Shrek is a box office behemoth, grossing over $484 million worldwide for the first film alone, and the franchise has raked in over $3.5 billion globally. This translates to a steady stream of royalty income for investors.
  • Evergreen Appeal: The franchise's popularity has endured for over two decades, with a dedicated fan base spanning multiple generations. This continued interest ensures consistent royalty generation for years to come.
  • Franchise Growth: Dreamworks' announcement of Shrek 5, slated for a 2026 release, adds another layer of excitement. New releases typically reignite interest in the entire franchise, leading to increased views and, consequently, higher royalty payouts.

The investor who secured the winning bid made a wise decision, acquiring a high-performing, evergreen asset with significant future growth potential.

A Similar Sale Highlights Strong Returns

Further solidifying the attractiveness of this investment, Royalty Exchange recently sold a smaller percentage of the same Shrek music catalog. This previous sale fetched an impressive 17.26 times the last 12 months' earnings, indicating the strong returns investors can expect from such assets.

Investing in Music Royalties

Investing in music royalties is becoming increasingly accessible, allowing individuals to participate in the financial success of their favorite artists and soundtracks. Platforms like Royalty Exchange connect investors with these opportunities, providing a transparent and secure marketplace for buying and selling music royalty rights. 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.

The sale of the Shrek music royalties serves as a compelling case study for those interested in this asset class. It demonstrates the potential for substantial returns, the stability offered by evergreen assets, and the growing demand for music royalty investments. Invest in music today and reap the benefits of earning passive income from music rights whose value is independent of macroeconomic markets.

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