Rihanna’s “Better Have My Money” NFT Holders Net First Streaming Royalty Payouts

by James · February 14, 2023

Quick take:

Jamil “Deputy” Pierre’s “Better have my money” NFTs sold out last week.
The music producer teamed up with AnotherBlock to sell 300 NFTs of Rihanna’s hit song at $210 each.
The NFTs allow collectors to earn royalties when the song is played on digital streaming platforms such as Spotify.

Rihanna wowed Super Bowl fans on Sunday with her first concert since the 2018 Grammys. She opened her halftime performance with her 2014 hit “Better have my money” in a 12-song set list.

What some didn’t know was that just days before her performance at Super Bowl LVII, Jamil “Deputy” Pierre, the producer of “Better have my money” had dropped 300 limited edition NFTs based on the song.

The NFTs sold out in minutes at a price of $210 each, earning NFT platform AnotherBlock $63,000.

sold out in minutes on the approval list sale
Our community is absolutely fantastic without you, this would never have been possible

▪️ Our upcoming pipeline of music drops is absolutely amazing, rest assured

▪️On February 16, our first holders will receive the first payment pic.twitter.com/pCPSOopvsV

— anotherblock ◼️ (@anotherblock_io) 9 February 2023

But this was no ordinary NFT drop. Holders of the NFTs are entitled to a share of the streaming royalties for the song. And according to the company’s tweet on Thursday, collectors should receive their first royalty payments on February 16.

“Better have my money” has already been streamed more than 673 million times on Spotify and could earn collectors about 6.5% royalties in the first year, according to AnotherBlock estimates.

Based on details obtained from the NFT release page, Deputy offered 1% of total streaming royalties, giving each collector 0.0033% ownership of future royalties from all digital streaming providers.

Some platforms misinterpreted the math, assuming that the deputy gave 1% of their share, instead of one percentage point of their share.

Theoretically, in the first scenario, if the share of streaming rights with Rihanna was 50:50, it would mean that Collectors would get only 0.5% of the total streaming royalties while Deputy keeps 49.5%.

In the second scenario, which is the correct one, collectors get a 1% share while the deputy sells a 49% share.

In an exclusive comment to NFTgators regarding the correct calculation of royalties to collectors, AnotherBlock CEO Michael Dahlberg Traore said “The supervisor sold 1% of the future streaming master royalties for the entire track, not 1% of his share, so this calculation is wrong. . ” This was in reference to an article which claimed that the deputy chairman auctioned off 1% of his shareholding.

Traore also provided clarification on the company’s associated risk policy, which states that royalty payments are not guaranteed.

– Regarding the associated risk of not being guaranteed to receive royalties, it means that we cannot guarantee that a song will actually stream. Imagine if we were to release a song that suddenly doesn’t stream on any streaming services, in which case we can’t guarantee streaming fees. If it generates streaming royalties, however, the owner will get his share, he said.

****

Keep yourself updated:

Subscribe to our newsletter using this link – we don’t send spam!