PYMNTS MonitorEdge May 2024

JKBX Launches Platform for Purchasing Shares of Music Royalty Assets

music performer

JKBX has announced that its platform for purchasing shares of music royalty assets is now live.

The platform is expected to appeal to both seasoned investors and music fans who are new to the world of music investments, JKBX (pronounced “jukebox”) said in a Monday (March 4) post on LinkedIn.

“For those who may be new to JKBX, we’re a platform that makes investing in music royalty assets accessible, allowing individuals like you to participate in the success of the music industry,” the company said in the post. “Every time music plays, someone makes money, and now that someone could be you.”

JKBX launched its platform offering securities backed by music royalty streams after the Securities and Exchange Commission (SEC) OK’d its first offering last week, The Wall Street Journal (WSJ) reported Wednesday (March 6).

Some songs recorded by artists like Beyoncé, Taylor Swift, Adele, OneRepublic, U2, Stevie Wonder and Major Lazer are listed on the platform, according to the report.

Many of the company’s current listings are generating yields of 3% to 4% at a time when money-market funds are offering about 5%, the report said.

Investors on the platform are betting that a song in which they invest will see a leap in royalty fees and streams if it is used in a TV show or goes viral, JKBX CEO Scott Cohen said in the report.

JKBX does not allow trading, so investors cannot sell the shares of songs that they buy on the platform, according to the report. The company said it plans to add the option to sell when it meets some more regulatory requirements.

In an earlier project having to do with music royalties, it was reported in 2022 that the pop act The Chainsmokers would release non-fungible tokens (NFTs) to give fans a piece of the streaming royalties from an album the band was releasing at the time.

Five thousand NFTs were given away for free, giving the holders a collective 1% of the royalties from the album as well as priority access for concert tickets and free merchandise. Band member Drew Taggert said the group was doing so to reconnect with fans.