Music investment platform JKBX said Wednesday that it is working with SoundExchange to process payments to artists and songwriters who participate in its creator program.
Founded in 2022, JKBX (pronounced “jukebox”) allows everyday investors to buy royalty shares that entitle investors to a portion of the income generated by songs such as OneRepublic Frontman Ryan Tedder's “Counting Stars” through public offerings regulated by the US Securities and Exchange Commission (SEC). The company, which launched its initial public offering last month, aims to open up an asset class to fans and other investors that was previously only available to the wealthiest investors.
JKBX does not currently work directly with musicians like Tedder. Instead, the company's deals are with record labels, music publishers and catalog funds that own the copyrights behind the rights offered on the platform. But the CEO of JKBX and co-founder of Orchard Scott Cohen says the creator program was designed to “spread the wealth” by giving artists and songwriters a cut of the revenue generated by this new way of monetizing music royalties.
“The JKBX Creators Program was designed to continually reward creators and artists for their contributions to society,” Cohen said in a statement. “We strongly believe that the talent that creates this essential art form that feeds us deserves this right.”
Artists who sign up for the creator program can create an artist page on the site and earn money for the fan attention and interaction they bring to JKBX's platform. JKBX says it tracks page views and distributes payments based on an artist's traffic share on the site.
The partnership with SoundExchange means that JKBX will use its technology and systems to pay artists, many of whom have already signed up to work with SoundExchange.
“SoundExchange's mission is to help creators maximize the value of their work, and JKBX provides a new alternative to monetizing music assets.” Michael Huppe said, president and CEO of SoundExchange, adding that the platform has the potential to bring millions of fans “invested in the craft.”
JKBX floated its first SEC-approved offering last month, a pool of 85 projects — 69 of which involve Ryan Tedder, the songwriter and producer best known as a member of the group OneRepublic. Tedder is a songwriter or producer on tracks by Adele, Jonas Brothers and Diplo offered on the platform.
Share prices on JKBX are currently fixed, meaning that a song's performance will fluctuate based on the amount of royalties paid, not the price going up or down. JKBX plans to launch a secondary market in 2024, according to the website FAQ sectionwhich will allow investors to resell their shares.
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