Music fans can now invest money in their favorite artist’s songs and get returns based on the track’s streams. A startup—named JKBX (pronounced “jukebox”)—has introduced a new marketplace for music royalties.
JKBX allows individual investors to buy securities backed by royalty streams from popular songs, bringing music investing to everyone.
The Securities and Exchange Commission recently approved JKBX’s first offering, featuring songs like Beyonce’s “Halo” and Adele’s “Rumour Has It.”
How does it work?
Investors can purchase shares of song rights on JKBX’s platform, entitling them to quarterly distributions of fees paid to the rights holders, which may vary based on sources like streaming services, album sales, and use in media.
The current yield stands at 3% to 4% among the startup’s initial listings. But there’s potential for increased earnings if a song experiences a resurgence in popularity, like Kate Bush’s “Running Up That Hill” in Stranger Things.
There is one caveat though
Investors can’t sell their shares yet. JKBX says it will implement buying and sharing this year.