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Royalty Exchange Passes $50 Million Paid Milestone

image from shorefire.comRoyalty Exchange announced this week that it had paid out over $50 million from 535 royalty transactions in the three years since the company relaunched in 2016. 255 investors participated in the funding.

image from s3.royaltyexchange.com

Royalty Exchange is touting the marketplace as a funding source for the musical middle class with 52% of the catalogs listed earning $20k or less in the prior 12 months. 75% of the artists who listed catalogs on our marketplace were songwriters.

Initially, all listings on Royalty Exchange were for permanent royalty sales, usually for just a percentage of a catalog and the copyrights generally weren’t included. But over the last year, they've added options:

  • Temporary sales that function much like an advance in that royalties revert back to the creator after 10 years. The result - larger advances with no recoupment commitment. These have driven 60% of all the transactions conducted since they were introduced.

  • Shared catalogs, where instead of auctions with a single winner-take-all highest bidder, multiple investors can buy shares of catalogs larger than what the auction platform can support. These drove over 35% of all transactions and brought in new investors and creators to the marketplace.

 

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