Royalty 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.
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.