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Retail investors will soon have the ability to invest in music rights the same way they do able to invest in stocks. Through a recently announced partnership between global trading company GTS and royalty technology platform JKBX (pronounced Jukebox), retail investors and music lovers will be able to invest in music royalties at scale.
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JKBX will work with rights holders to unlock the value of catalog assets by offering them to retail investors on a regulated market, said Jacqueline Ortiz Ramsay, Head of Communications and Public Affairs. She added that the app and website are expected to be released in late 2023.
“Music is a lesser-known asset class, but it’s been around for a long time,” said Ortiz Ramsay. “A handful of private equity firms, multinational corporations and major labels control the world’s most valuable music rights. JKBX’s platform will enable these entities and other significant rights holders to unlock the true value of these assets by offering them to retail investors to buy and sell on a regulated market. We believe everyone should be able to access it.
She said this approach improves the current revenue streams of the global music business.
“In the same way that a person today can buy shares of Apple, they should be able to invest in their favorite song,” she added.
JKBX holds huge music catalog assets
JKBX currently has nearly $2 billion in catalog assets and plans to launch with more than $4 billion in catalog assets, making it the only music stock trading platform of this scale, according to Ortiz Ramsay.
“JKBX will provide access to songs from chart-topping artists and thousands of globally acclaimed songs spanning multiple genres and decades,” she said, adding that the company “will reveal artist and song names in the coming months”.
The operation will be quite simple: customers will register on the platform (via a website or an application) and can then invest in fractions of royalties on the JKBX platform.
“Clients will go through traditional KYC (Know your customer) regulatory processes as required by the SEC [Securities and Exchange Commission]“, added Ortiz Ramsay.
The platform is different from other similar models in that it will offer large-scale investing – it is expected to be the largest music rights platform at launch – and it will be a regulated platform.
“Some companies try to do that but they don’t consider the regulatory needs,” Ortiz Ramsay said. “As we launch in the United States, we are focused on working with the SEC to create a fully regulated market.”
As for GTS, it will serve as market maker.
“GTS excels at building markets for every major financial asset class and providing increased liquidity through sophisticated, real-time pricing,” said Ari Rubenstein, co-founder and CEO of GTS, in a statement. Press release. “This same expertise can be applied to music royalties, which represent the next exciting tradable asset class. JKBX, with its music royalty platform and extensive catalog rights, is an ideal partner for us. »
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Interested fans and investors can already sign up for the waitlist on the JKBX website.
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