Devoted Music Catalog

Devoted Music Catalog

Going for $140,000.00 [1 Bids]

Reserve: [Not met]Winning: crislarr

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  • First Bid: 1 week ago
  • Last Bid: 1 week ago
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Description

    Devoted Music, is a mixed diverse catalog of covers across a wide range of hits and movie soundtracks. This catalog includes both streaming income from Apple and digital downloads.  The highlight of this catalog is that is has been trending up, and that 92% of the income is from Ringtones that have not seen any falloff or decline like downloads have.  Only 3% is downloads, that have been somewhat declining and 5% is streaming, that has been flat as well.

    Auction Information
    • crislarr bid $140,000.00November 7, 2019 6:12 pm

    Winner will receive PayPal payment link via email.

    TERM:
    LIFE OF COPYRIGHT

    PAYMENT:
    Please disregard the PayPal info listed. Payments can be wired, it will not be via PayPal.

    CATALOG
    Devoted Music: This is a catalog of karaoke hits and movie sound tracks that is five plus years old with some new tracks added as late as this year. There will be no more tracks added to this catalog.

    RIGHTS INCLUDED:
    • 25% OF THE SELLERS INTEREST
    • DISTRIBUTED BY APPLE, CONTROLLED AND PAID BY GROUPO LARROSA

    TYPE OF ASSETS:
    SOUND RECORDINGS: INSTRUMENTAL PLAYBACKS, COVER SONGS, AND RINGTONES OF HITS AND MOVIE SOUNDTRACKS

    REVENUE IN THE REPORTED LAST TWELVE MONTHS:
    $ 144,218 – 25% AT AUCTION = $36,054

    Analysis of Revenue and Streams/Downloads:
    To complete the analysis we will look at revenue, streaming and download data.

    Revenue – Revenue numbers go back to 2017 so we have a good history of data. I have broken the revenue numbers down by Streaming and Downloads and further in Downloads as it includes traditional downloads as well as ringtones. The good news is that the trends are very clear so it is easy to understand and analyze this data.

    Streaming and Downloads/Ringtones – This catalog breaks the normal trends a bit because they are ringtones as well as traditional downloads and streaming and because they are karaoke hits and soundtracks. Streaming (5%) isn’t increasing, but also is not decreasing, see exception below. Downloads (3%) and more specifically ringtones (92%), are trending up.

    Download/Ringtone vs Streaming
    Overall revenue trend is up

    Streaming:

    Streaming only represents 5% of the overall revenue so we will not spend a whole lot of time on it. In the chart below you can see that the top 10 songs represent 51% of the streams and adding the next 10 songs get you to 59% for a majority comes from the top 10.

    The top 10 songs are a mix of old hits and movie soundtracks, so I don’t expect there will be much movement on this because they are all old legacy songs that should not experience any major falloff.

    If you look at the revenue chart above though you can see there is a drop off in the last two months. I looked at that data, and the drop off occurred across all countries evenly. So that leads me to believe that there is a reporting lag and that the trend should stay flat as there is no reason for the dropoff to only occur in the last two months across all countries.

    Downloads/Ringtones:

    I am not going to spend any time on downloads because it only represents 3% of revenue and doesn’t have a large material impact on overall revenue. Instead, we will focus on Ringtones.

    Ringtones are a bit of an anomaly in that they don’t follow normal trends because they are a completely separate market and purchase channel. Ringtones represent 92% of revenue and are actually trending up.

    The analysis shows that the trend up is impacted by the addition of some newer songs as you can see in the two analysis images below. In the two images we contrast the overall top revenue-producing songs compared to the top songs from the last three-month average.

    When we layer in the three-month average songs you can see how three newer songs popped up but in general all of the same top songs are still there holding their spots.

    Looking at the mix of songs, most are classic hits spanning the 80’s pop, rock, and some soundtrack songs from Queen and Guardians of the Galaxy. Overall the top 10 songs generate 11% of the income with the next 10 songs adding another 6% for a total of 16%. This is a good mix that reduces risk because the revenue is well spread out across a very large song base.

    Risks and Conclusion

    All catalogs have risks and this does as well. Everything looks positive with this catalog, the revenue line is trending up, not a huge downside effect of downloads and net neutral on streaming. Ringtones don’t follow normal trend lines so having the majority of revenue there is great.

    For the songs, these are all legacy songs and the only real risk is that some of the increase in revenue is coming from some of the newer songs, not a lot but some, and without the newer songs you could see a flattening out of revenue.

    Links to Detailed Data

    Link to Streaming Data

    Link to Download/Ringtone Data