TERM: LIFE OF COPYRIGHT
CATALOG: This is a masters catalog of background music used in videos, commercials, and other types of event videos like wedding videos.
RIGHTS INCLUDED: 75% OF TWO EQUAL SHARES IN SELLER’S MASTER RECORDING RIGHTS
TYPE OF ASSETS: MASTER RECORDINGS
LAST 12 MONTHS REVENUE: $55,164 @75% = $41,373
All Revenue Numbers in the charts below are 100% of the income. Only 75% of the income is being sold.
*These numbers are based on my actual earned share, after ownership splits and Musicbed commissions.
This is a predominantly instrumental catalog (production music) of master recordings that have been licensed thousands of times for film, tv, and media under the artist name “Brique a Braq”. Licensed by brands including Nike, Google, Subaru, Honda, the Democratic National Convention, and countless churches, wedding, business, and nonprofits.
Production music is a great alternative to traditional music because there is no bell curve of having a song released, peak and fall. Production music, if solid earners like this, can keep producing income at the same level for years if the songs are timeless, and not stuck in a particular era.
Both owners are selling 75% of the master rights which includes normal streaming income from their distributor as well as income from Musicbed. Musicbed is a service to provide music to different projects, from commercials, television, movies, and even wedding videos. This is a new breed of music income and as you will see in data below, a great source of recurring revenue.
Here is a great article on the record label and the owners. Christian Ambient Music: Spotlight on Brique a Braq
There are three different types of Musicbed licensing royalty sources:
Subscription: End-users pay Musicbed an annual rate for unlimited licenses. Musicbed pays out copyright holders based on the number of subscription uses.
Single Song: End-users pay Musicbed a one-time license for one use of the song. These licenses range anywhere from $50 for a wedding video to 2-3k for a larger brand who want to use it online, and ranges for everything in between.
Custom licenses: End-users pay Musicbed a one-time license for the use of a song. These licenses are higher priced and can’t be purchased directly from the website. End-users have to speak to a Musicbed employee to get a custom rate. These are typically higher budget uses (like the Subaru placement).
Looking at the income from Musicbed, we can see there are three main income types based on the licenses discussed earlier. Single song revenue is from single-use and subscription revenue is where people sign up for the “all you can drink” songs and the revenue is split pro-rata.
The other two sources are DashGo and DistroKid which are traditional sources of streaming income.
Even though these songs are new, 2018 and 2019, you can already see the future income potential from Musicbed.
Single Song Income
This is revenue generated when someone wants to license a single song, usually for a larger usage. The top two songs represent 85% of the Single Song income with the third song at 12% and the rest at 2% or less. Not only do we see the strength of the top two songs in revenue, but Musicbed recognizes their value because “Vauxcelles” was on Musicbed’s “Best of 2020” playlist and “Chagall” was on Musicbed’s “Best of 2019” playlist. This bolsters the theme that we are not looking at some random catalog of music, that these songs are top performers in their class.
If we look at the top income buyers of the Single Song income we can see that large brands like Subaru and JD Powers have purchased the use of these songs and Subaru has an upcoming renewal to continue its use.
Song Subscription Income
The song subscription is where someone subscribes to Musicbed and just like streaming, they can use all the songs in the library, with limitations. The revenue is then split across the songs based on usage for that period. This income represents 35% of the overall revenue but has a much wider spread of income-producing songs. The top three songs represent 76% with the rest from 8% on down. Even though this is a smaller percentage of the overall revenue it still shows excellent income potential across both types of income streams.
Although these songs are still new, this new music economy shows how good songs can create strong revenue that doesn’t follow the Pop Song trajectory of a pop when it is popular and then rapid decline. Production music, especially great production music, like this catalog is, will last for years and years because it doesn’t go out of style.
Here is some additional information from Musicbed that shows the strength of the catalog:
233 end-user wish list ads in the last 30 days (prospective users of the song catalog)
237 end-user downloads in the last 30 days (prospective users of the song catalog)
Subaru has an option to renew their use of “Vauxcelles” for another year in March.
Although a much smaller portion of earnings the catalog does produce earnings from streaming. It has been growing since its release and flattened out mid 2020 only to start climbing again.
Interestingly the top songs from Musicbed are not the top songs by streaming. This shows the breadth of the opportunity for this catalog.
The income by type looks normal across all providers.
Since the sellers are only selling 75%, we wanted to highlight the activities they are working on to not only increase sales of this catalog but their overall efforts to increase the brand which grows the catalog as well. This relates to both Musicbed and Streaming.
Ways The Catalogue / Project Is Being Actively Promoted:
Releasing new music as “Brique a Braq” every month
Blog campaigns to engage more usage
Monthly email newsletter with each release
Actively and regularly promoting new releases on Spotify, to playlists, and on social media, and driving people to Musicbed for licensing (combined 10k+ social media followers)
Submithub campaigns on each release
Participate in the virtual #ivoted festival
From the seller’s extensive experience in working in the music licensing space, he personally knows many music supervisors, videographers, filmmakers, and content creators. These are the direct end-users who would license these songs. I am regularly in touch with these people, making them aware of this song and project.
Ways An Investor Could Bring Additional Revenue Moving Forward:
The quickest way to create additional revenue would be to drive single-use licenses or subscription licenses to the catalog via Musicbed. One of the great and rare things is that these songs can be and have been licensed for a wide variety of uses and price points – everything from church videos and wedding videos to corporate uses, large-brand ads, promos, in-show uses. Anybody you know that needs music for digital media is able to license this music. I personally have driven revenue to the catalog by simply making contacts of mine in the video / digital media space aware of these songs. There’s always music that needs to be licensed for something. Most folks would rather license from a personal contact and put money in their friend’s pocket as opposed to a random online library.
Although this is a young production music catalog, the earning potential is solid for two reasons, one, because of the way production music is used, and two because the sellers are only selling 75% which incentivizes them to continue to not only promote these songs but as you can see above, to actively promote the overall brand and grow the catalog which increases revenue across the board.
Catalog Licensing Samples:
**Very small selection
Wedding Video Example
Page Trucking – Corporate Video Example