The publication rights to one of Avicii’s most iconic songs have hit the auction market, creating an opportunity for a lucky investor to effectively own a piece of dance music history.
It was a heavily teased trail in the last years of Avicii’s life. When he started performing “Without You” in 2016 on high-profile appearances such as Ultra Music Festival and Creamfields, several rips started popping up online as fans feverishly speculated on his release date. However, it wasn’t until August 2017 that we finally witnessed the chemistry between Avicii and Sandro Cavazza on the heart-throbbing collaboration.
Publishing rights for “Without You” recently landed on the Royalty Exchange, an emerging market that facilitates the sale of royalty-generating assets, from music to intellectual property around consumer products. The auction ended early Friday morning, when an anonymous bidder won the rights to “Without You” for a predetermined period of 10 years.
After the end of the term, the rights revert to the original owner. However, the limited duration didn’t stop the song’s valuation from soaring. The winning bid was placed at $ 65,000 to secure the assets.
According to Royalty Exchange’s preliminary analysis, this award will always provide the winner with a substantial return. An average internal rate of return (IRR) of 11% per year over the period is expected. According to the Royalty Exchange measure, “Without You” has generated around $ 20,000 in royalties over the past 12 months, but generally music royalties see a number of diminishing returns year over year as the piece is aging. Therefore, IRR is a particularly important consideration that makes or breaks an investment in this industry.
You can read more about the auction here.