Music royalties have always been big business. They are, after all, what has historically been a massive component of revenues for the entire recorded music industry. And, until recently, who owns the right to these royalties has largely been dominated by contracts signed between artists and record labels, both of which will hold onto those rights ‘for life.’
But in recent years, an increasing number of artists have begun selling rights to their catalogs. This has opened up opportunities for investors and labels alike to acquire rights to recorded music, whether that be outright ownership of the song(s) or a right to receive royalties on all future sales and streams.
Following this trend, the American all-girl supergroup TLC has just partnered with SongVest — an online platform for buying and selling music royalties. The partnership will provide TLC fans and investors a once-in-a-lifetime opportunity to purchase “fractionalized shares” that grant shareholders the right to a percentage of the group’s royalties.
GET IN THE MUSIC ROYALTIES GAME: SongVest and TLC have partnered up to give fans and investors the opportunity to purchase rights to fractionalized royalties. Find out more here.
Who’s TLC and Why Would I Want Rights to Their Royalties?
For most readers, TLC will be a familiar name. The all-American supergroup formed in Atlanta, Georgia, in 1990 and went on to sell over 65 million records and become one of the best-selling American girl groups.
Contributing to the group’s success in the 1990s were nine top-ten hits on the Billboard Hot 100, including four number-one singles: “Creep,” “Waterfalls,” “No Scrubs,” and “Unpretty.”
However, TLC’s success has stretched well beyond the nineties. Today, the group’s popularity endures, and it continues to dominate the upper echelons of the streaming charts. To give just one example, their hit single “No Scrubs” continues to average 538k streams per day on Spotify alone.
To put that into perspective, Spotify pays between $0.003-$0.005 per stream. For a song like No Scrubs, those 500k streams per day work out to almost $1 million per year in royalties from Spotify alone. Once we begin to accumulate royalties from other streaming platforms, this really starts to add up.
How SongVest Allows Fans and Investors to Earn a Share of TLC’s Royalties
For fans and investors looking to join in the group’s enduring success, TLC has partnered with music marketplace SongVest. The partnership will see the sale of fractionalized royalties for newly-recorded versions of three of the group’s most popular hits. These fractionalized royalties divide music royalties into smaller, tradable units that allow fans and investors to purchase a percentage of the royalties generated by a song.
In principle, the concept is not all that different from the fractionalized ownership model popularized by platforms like Masterworks. Essentially, by splitting up an asset into smaller shares, multiple fans and investors can all participate. This also has the effect of lowering the price to play, allowing investors of even the most humble means to take part.
However, for all their similarities, there are some differences. Notably, the primary difference between the two is that, instead of owning a fraction of the song, fans instead own the rights to a fraction of the royalties generated by the song.
This difference is smaller than it may seem, however. While holders of fractionalized royalties don’t directly ‘own’ the song per se, they still retain the right to trade their shares. This makes fractionalized royalties doubly attractive as, in addition to receiving ongoing royalty payments, fans, and investors can also potentially profit from the sale of their shares if interest in an artist increases.
LEARN MORE ABOUT SONGVEST: SongVest’s SEC-qualified fractionalized royalties are a unique investment opportunity for fans and investors alike. Find out more about the TLC offering here.
Who’s SongVest and How Safe Are Their Fractionalized Royalties?
SongVest is a fan investment platform that created the first-ever SEC-qualified securities offering for fractionalized royalties. This means that shares purchased through SongVest are strictly regulated by the same body that regulates other securities markets in the US, providing significant investor protection.
To date, SongVest has listed thousands of fractionalized royalties from a diversity of artists, with some shares starting as low as $16 for shares in some lesser-known artists.
Naturally, with TLC being as big as they are, fractionalized royalties in their catalog won’t be quite so cheap. They will, however, still be relatively accessible to just about anyone, with the shares set to be auctioned off, with bids starting at $100.
Own a Piece of TLC History for Fun, Earn Royalties for Profit
For fans and investors looking to grab a piece of TLC history, VIP Auctions will commence on Friday, May 26, 2023. On offer will be fractionalized royalties in three songs that are set to be re-recorded — “Diggin’ On You – TLC Version,” “Creep – TLC Version.,” and, of course, “No Scrubs – TLC Version.”
As noted above, bids will start at $100, and all buyers will also receive a unique, on-off NFT collectible to be claimed from OneOf.com. Additionally, all fans have the opportunity to enter to win a personal phone call from TLC, two tickets to any upcoming tour date, exclusive merchandise, and autographed posters.
“We’ve always tried to show our fans how much they are appreciated. From including their letters in Fanmail, and inviting them to be a part of our last project,” said TLC. “This partnership with SongVest offers another opportunity to show our gratitude to our amazing fans and to include them in TLC history in a very special way.”
For full details and to take advantage of this unique opportunity, check the TLC listing on SongVest.
(Featured image provided by SongVest)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
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