{"id":162148,"date":"2023-08-29T19:42:04","date_gmt":"2023-08-29T18:42:04","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=162148"},"modified":"2023-08-29T20:06:17","modified_gmt":"2023-08-29T19:06:17","slug":"jkbx-music-royalty-share-trading-platform-to-launch-september-12","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/jkbx-music-royalty-share-trading-platform-to-launch-september-12\/","title":{"rendered":"JKBX, music royalty trading platform, will launch September 12, aiming to become &#8216;transformative force in music and investing&#8217;"},"content":{"rendered":"<p>The arrival of song royalties trading platform, JKBX, is shaping up to be one of the most intriguing \u2013 and, potentially, financially significant \u2013 launches for the music business this year.<\/p>\n<p>The company, pronounced &#8216;jukebox&#8217;, has this week confirmed that it will officially launch on <strong>Tuesday, September 12<\/strong>.<\/p>\n      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__tweeny hidden-xs hidden-ms hidden-sm\" data-loaded=\"no\" data-sizes=\"992 1200 1440\" data-name=\"628x90 Sponsor banner #5 (992+1200+1440)\" data-params=\"dfp_sponsor5_628\" id=\"dfp_sponsor5_628\"><\/div>      <div class=\"mb-advert mb-advert__banner mb-advert__banner--inline hidden-xs hidden-sm hidden-md hidden-lg\" data-loaded=\"no\" data-sizes=\"480\" data-name=\"468x60 Sponsor banner #5 (480)\" data-params=\"dfp_sponsor5_468\" id=\"dfp_sponsor5_468\"><\/div>      <div class=\"mb-advert mb-advert__mobile mb-advert__mobile--inline hidden-ms hidden-md hidden-lg\" data-loaded=\"no\" data-sizes=\"320 768\" data-name=\"300x50 Sponsor banner #5 (320+768)\" data-params=\"dfp_sponsor5_300\" id=\"dfp_sponsor5_300\"><\/div>      <\/div>      \n<p>At launch, <strong>JKBX<\/strong> will enable investors to &#8216;reserve&#8217; shares in royalty streams from hundreds of songs, including hits such as <em>Bleeding Love<\/em> performed by Leona Lewis, <em>Sucker<\/em> performed by the Jonas Brothers, <em>Counting Stars<\/em> performed by OneRepublic, <em>Welcome To New York<\/em> performed by Taylor Swift, <em>Lean On<\/em> performed by Major Lazer, <em>Rumour Has It<\/em> performed by Adele, and <em>Halo<\/em> performed by Beyonc\u00e9.<\/p>\n<p>That&#8217;s &#8216;reserve&#8217; rather than &#8216;buy&#8217;&#8230; for now \u2013 because <strong>JKBX<\/strong> is in the process of seeking regulated approval from the US <strong>Securities and Exchange Commission (SEC)<\/strong> to sell music royalty streams to investors as a<a href=\"https:\/\/www.sec.gov\/education\/smallbusiness\/exemptofferings\/rega\" target=\"_blank\" rel=\"noopener\"> &#8216;Regulation A offering&#8217;<\/a>.<\/p>\n<p><strong>JKBX<\/strong> is also likely to be seeking regulatory approval for a secondary market, enabling those who&#8217;ve bought royalty streams to then trade them with fellow investors.<\/p>\n<hr \/>\n<div class=\"mb-embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/1sUJedMs1Ys\" frameborder=\"0\" allowfullscreen><\/iframe><\/div>\n<hr \/>\n<p>The people behind <strong>JKBX<\/strong> are familiar to the music business. The company was founded by <strong>Sam Hendel<\/strong> and <strong>John Chapman<\/strong> of venture capital \/ private equity firm <strong>Dundee Partners<\/strong>.<\/p>\n<p>Dundee Partners is a <a href=\"https:\/\/www.musicbusinessworldwide.com\/the-kobalt-sale-3-takeaways-from-the-music-industrys-biggest-story-of-the-moment\/\" target=\"_blank\" rel=\"noopener\">minority shareholder<\/a> in Kobalt Music Group, having come together with Francisco Partners (now <strong>90%<\/strong> owner of KMG) and Matt Pincus&#8217; MUSIC last year to acquire the firm.<\/p>\n<p>Dundee (via the Hendel family) also teamed up with KKR in 2021 to acquire a bundle of rights from Kobalt Capital, <a href=\"https:\/\/www.musicbusinessworldwide.com\/confirmed-kobalt-sells-catalog-to-new-kkr-venture-chord-for-1-1-billion\/\" target=\"_blank\" rel=\"noopener\">for around<\/a> <strong>$1.1 billion<\/strong>.<\/p>\n<p>That rights portfolio, now known as <strong>Chord Music<\/strong>, contained <strong>62,000 c<\/strong>opyrights, including a string of hit songs written by <strong>Ryan Tedder<\/strong> amongst others.<\/p>\n      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__spu\" data-loaded=\"no\" data-name=\"300x250 Sponsor MPU #1\" data-params=\"dfp_spu1\" id=\"dfp_spu1\"><\/div>      <\/div>      \n<p>Another co-founder of <strong>JKBX<\/strong>, and CEO of the company, is <strong>Scott Cohen<\/strong>, co-founder of The Orchard and formerly Chief Innovation Officer at Warner Music Group.<\/p>\n<p>London-based Cohen said of <strong>JKBX&#8217;s<\/strong> impending launch: \u201cJKBX is not only going to benefit recording artists, songwriters, fans, investors, and rights holders, it will also transform how the investment world views new, alternative asset classes.&#8221;<\/p>\n<blockquote><figure class=\"mbw-articlepic mbw-articlepic--right\"><img  alt=\"Scott Cohen\" title=\"Scott Cohen\" class=\"lazyload\" data-srcset=\"https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/ScottCohen-80x60.jpeg 80w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/ScottCohen-160x120.jpeg 160w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/ScottCohen-320x240.jpeg 320w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/ScottCohen-418x314.jpeg 418w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/ScottCohen-648x486.jpeg 648w, https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/ScottCohen-836x627.jpeg 836w\" data-sizes=\"auto\"><\/figure><p>\u201cJKBX is not only going to benefit recording artists, songwriters, fans, investors, and rights holders, it will also transform how the investment world views new, alternative asset classes.&#8221;<\/p>\n<p><span style=\"color: #000000;\">Scott Cohen<\/span><\/p><\/blockquote>\n<p>Big numbers are already floating around<strong> JKBX<\/strong>, which said in a press release issued today (August 29) that it&#8217;s aiming to &#8220;become a transformative force in music and investing&#8221;.<\/p>\n<p>The company raised <strong>USD $16 million<\/strong> in January from investors, according to a new <a href=\"https:\/\/www.billboard.com\/business\/tech\/jkbx-fans-song-music-market-invest-1235397979\/\" target=\"_blank\" rel=\"noopener\"><em>Billboard<\/em> cover article<\/a>, with backers including Mike Novogratz\u2019s Galaxy Digital, Valor Equity Partners, plus Tyler and Cameron Winklevoss.<\/p>\n<p><em>Billboard&#8217;s<\/em> sources also suggest that the likes of <strong>Spotify, Live Nation, YouTube, Red Light Management, and Bertelsmann Digital Media<\/strong>, have also invested in JKBX.<\/p>\n<p>In February, a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-02-03\/music-lovers-to-become-royalty-investors-in-new-trading-platform\" target=\"_blank\" rel=\"noopener\">Bloomberg article<\/a> reported that JKBX already had &#8220;about<strong> $1.7 billion<\/strong> in music rights &#8216;exclusively secured'&#8221;, and expected to launch its platform with more than <strong>$4 billion<\/strong> of rights in its platform.<\/p>\n<hr \/>\n<p>Now we&#8217;ve talked about big money&#8230; we should also talk about the finer details of how<strong> JKBX<\/strong> plans to work with large-scale music rightsholders to fuel its platform.<\/p>\n<p>The songs listed on <strong>JKBX<\/strong> \u2013 in which investors will potentially be able to buy slices of royalty income streams \u2013 will actually be offered by the company&#8217;s affiliate, <strong>Jukebox Hits Vol. 1 LLC<\/strong>.<\/p>\n<p>This LLC (<strong>&#8220;Hits Vol. 1&#8221;<\/strong>) will work with music rightsholders, says JKBX, to &#8220;identify income-generating songs and determine which songs to offer on the [JKBX] platform&#8221;.<\/p>\n<p>Willing rightsholders will then <strong>sell a percentage of their income interests<\/strong> from these songs to the <strong>Hits Vol. 1 LLC<\/strong> \u2013 before <strong>Hits Vol.1<\/strong> subsequently sells separate portions of these income streams to fans and investors via JKBX.<\/p>\n<p>Before that can happen, though, <strong>Hits Vol.1<\/strong> is seeking to qualify the offering \u2013 i.e. the royalty shares to be sold via JKBX \u2013 with the SEC, pursuant to Regulation A under the Securities Act of 1933.<\/p>\n      <div class=\"mb-advert__incontent\">      <div class=\"mb-advert mb-advert__spu\" data-loaded=\"no\" data-name=\"300x250 Sponsor MPU #2\" data-params=\"dfp_spu2\" id=\"dfp_spu2\"><\/div>      <\/div>      \n<p>The early adopters who &#8216;reserve&#8217; their ownership of royalty streams after <strong>JKBX<\/strong> launches in September won&#8217;t initially have to put any money down.<\/p>\n<p>Instead, these reservations will be nonbinding while JKBX awaits final approval from the SEC to make its offerings available to purchase for investors.<\/p>\n<p>Earlier this year, <strong>JKBX<\/strong> announced it had <a href=\"https:\/\/www.musicbusinessworldwide.com\/scott-cohen-led-startup-jkbx-partners-with-electronic-market-maker-gts-to-take-music-rights-investing-to-the-masses\/\" target=\"_blank\" rel=\"noopener\">partnered<\/a> with electronic market maker <strong>GTS Securities LLC<\/strong>.<\/p>\n<blockquote><p>&#8220;A handful of private equity firms, multinational corporations and major labels control the most valuable music rights in the world. JKBX\u2019s platform will allow 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 in a regulated marketplace.&#8221;<\/p>\n<p><span style=\"color: #000000;\">Scott Cohen, speaking in February<\/span><\/p><\/blockquote>\n<p>At the time, Scott Cohen said: \u201cA handful of private equity firms, multinational corporations and major labels control the most valuable music rights in the world.<\/p>\n<p>\u201cJKBX\u2019s platform will allow 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 in a regulated marketplace.<\/p>\n<p>\u201cThis innovative approach enhances current global music business revenue streams and adds a multi-billion-dollar opportunity on top. We look forward to working with GTS and revolutionizing the ownership of royalties.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Songs that will appear on the platform on day one will include a run of chart hits performed by artists like Beyonc\u00e9, Major Lazer, and Taylor Swift<\/p>\n","protected":false},"author":3,"featured_media":162149,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-162148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/162148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=162148"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/162148\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/162149"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=162148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=162148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=162148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}