3+ Ways Retail Investors Can Invest in Music & Royalties
There are a few ways people try to build a closer connection to music through investing. We believe JKBX is the best option, and here's why.
As a financial company, we must comply with certain rules that govern what we can and cannot say. These rules are designed to protect you, the consumer. But here's something we can say for sure:
Music is really, really awesome.
So, if music is one of the best things on Earth — why not find ways to build a deeper connection to the music you love, and enjoy it even more? Some people have tried the following investment approaches to do just that.
1. You could buy stock in record companies or publishers
In many cases, the record companies and music publishing companies that discover and promote your favorite artists are publicly traded entities. Buying stock in these companies isn’t the most direct way to invest in the music you love, but it’s a simple way to build a personal and financial connection to the music industry.
2. You could invest in royalty funds
Royalty funds purchase the rights to music catalogs and collect the associated royalties and fees. Then, they distribute the money they collect to the fund’s shareholders. Most royalty funds are private and only available to accredited investors, but there are a few that are publicly accessible.
3. You could purchase rights directly
You’ve probably heard about investors purchasing whole artist catalogs for ludicrous sums. Obviously, that’s not something most investors can do. But some platforms allow you to purchase the actual royalty rights to a song, album, or catalog — assets are pulled together to be purchased as a group. Then you own the rights to the assets for some set period of time, ranging from a few years, to the Life of Rights (the lifetime of the artist, plus 70 years).
The JKBX platform presents a new opportunity
We are making investing in royalties accessible and simple. Rather than investing in whole catalogs or large corporations, you’ll be able to invest in the income generated by a specific song. That means, unlike many of the options listed above, investing on JKBX doesn’t require a massive initial investment or net worth — and it allows you to build a shared future with something you know and love.
FYI: Here’s the full, unabridged description of a Royalty Share
Royalty Shares represent a contractual right to receive a specified portion of royalties, fees, and other income streams embodied in the income interests the issuer receives that relate to royalty rights for a specific music asset or a compilation of music assets.
What songs on the JKBX platform do you love?
Explore ListingsBio: With JKBX, you can invest in something everyone knows and loves — music. Join JKBX today to stay up to date on the latest Royalty Shares opportunities.
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FAQ
JKBX (pronounced "Jukebox") unlocks shared value from things people love by offering consumers access to royalties as an asset class.
The short: JKBX is a platform where you can invest in Royalty Shares of hit songs.
The long: JKBX is a platform for investing in shares of the income generated from music royalties by purchasing Royalty Shares. If you’re a music superfan looking for a deeper connection with the music you love, now you can turn your playlist into a passive income stream.
For every piece of music, there are two copyrights: one for the composition and another for the recording of that composition. Music royalties are payments made to the creators and rights holders of music — the people who created or own the copyrights — for the authorized use of their work. These royalties and fees serve as compensation for the use of copyrighted music. They’re typically paid by entities such as streaming platforms, radio stations, television networks, film studios, and live performance venues.
Music royalties play a crucial role in supporting songwriters, artists, publishers, and labels by providing them with ongoing income for their creative works and resources to invest in creating new works. Investors can acquire music Royalty Shares, which entitle them to a portion of royalty income.
There are several sources of income interests generated by the use of copyrighted music. They include:
Composition:
- Mechanical: These royalties are paid to songwriters, publishers, and administrators for the reproduction and distribution of their compositions. They are generated from physical and digital sales and streaming of the composition.
- Public Performance: These royalties are collected by performance rights organizations (PROs) and paid to songwriters, publishers, and administrators. They’re earned when a composition is performed publicly or broadcasted, including on radio, TV, live performances, and certain streaming platforms.
- Synchronization: These fees are earned when a composition is synchronized with visual media, such as movies, TV shows, commercials, and video games. The rights holders receive payment for the use of their music in these visual productions.
- Other: This could include income generated by print, karaoke, or social media, or other income generated by a composition that doesn’t fit clearly into any of the above categories.
- Remix: Some compositions include rights associated with related remixed versions of such composition. The rights associated with remixes generally accrue royalties from the various income interest sources described above in this list.
Sound Recording:
- Sales: These royalties are generally paid to record labels from the sale of records in all formats (physical, downloads, and streams).
- Neighboring Rights/Digital Performance: These are public performance royalties paid to the owner of the recording of the song performed and to the performers whose performance was recorded. They are generated by exploitations outside of the United States or when their recordings are played over digital and satellite radio in the US, such as Pandora, Sirius, and iHeartRadio when they collect similar “digital performance royalties.”
- Synchronization: These fees are earned when a sound recording is synchronized with visual media, such as movies, TV shows, commercials, and video games. The rights holders receive payment for the use of their music in these visual productions.
- Other: This includes income generated by social media and or other income generated by a recording that doesn’t fit clearly into any of the above categories.
- Remix: Some recordings include rights associated with related remixed versions of such recording. The rights associated with remixes generally accrue royalties from the various income interest sources described above in this list.
- Royalty Participants: These royalties generated by the various exploitations of the sound recording are paid to producers, artists, engineers, and other key stakeholders. These royalties accrue from the various income interest sources described above in this list.
Royalty Shares are the securities offered by issuers on the JKBX platform. They represent a contractual right to receive a specified portion of royalties, fees, and other income streams contained in the income interests the issuer receives that relate to royalty rights for a specific music asset or a compilation of music assets.
For the sake of clarity, by purchasing Royalty Shares you will not receive any equity interest in JKBX, any of its affiliates, or any other party, additional rights or licenses, including but not limited to copyrights, trademarks, voting rights, or commercial/personal usage rights, or any physical products. The Royalty Shares offered on the JKBX platform are not the same as shares of any company’s stock.
We are open to international investors that meet their applicable securities regulations, however JKBX is currently optimized for US-based individuals. At this time we only offer English-language customer support in US time zones, and not all product functionality may be available internationally.
Additionally, it's important to note that regulatory and legal requirements may differ between countries, so international investors should ensure compliance with the applicable laws and regulations in their respective jurisdictions.