Jay-Z’s Roc Nation is set to enter the emerging music royalty trading market through a partnership with South Korean fintech company Musicow, positioning itself as a direct competitor to JKBX in the US.
The new platform, scheduled to launch in the first quarter of 2025, will allow music rights owners “to securely fractionalize royalty revenue from their songs and sell shares, enabling fans to earn alongside them,” Roc Nation said on Thursday (January 23). Early registrants are being offered $10 in their Musicow wallet upon sign-up.
Musicow purchases the copyright of a song from its original creator and splits the rights into smaller portions, allowing members on the platform to buy shares in the copyright royalties.
The service is similar to what is currently offered by JKBX, which has already established itself in the market. JKBX began its soft launch in 2023, initially allowing users only to reserve royalty shares while awaiting regulatory approval from the US Securities and Exchange Commission. With full regulatory approval now secured, JKBX has been facilitating actual purchases of music royalty shares since March 2024.
“Our mission is not only to support and empower artists by providing the tools and services they need to build a better music ecosystem but also to give everyone access to the financial opportunities the music industry offers.”
Jay Brown, Roc Nation
Through JKBX, users can buy royalty stakes in hits written and/or recorded by various superstar songwriters and artists ranging from Beyoncé to Ryan Tedder, Timbaland, the Jonas Brothers, Camila Cabello, Major Lazer, OneRepublic, Ed Sheeran, Louis Bell and more.
Roc Nation said its partnership with Musicow will allow superfans to “earn revenue alongside their favorite artists by introducing music royalties as an alternative asset class.”
“The music industry is evolving into a shared ecosystem where fans and creators can earn together,” Roc Nation Vice Chairman Jay Brown said.
“Our mission is not only to support and empower artists by providing the tools and services they need to build a better music ecosystem but also to give everyone access to the financial opportunities the music industry offers.”
Woo Rhee, CEO of Musicow US, added: “Partnering with Roc Nation is an incredible opportunity to drive innovation and redefine the future of our industry. I’m confident that together, we have the vision, expertise, and enthusiasm to create transformative progress and unlock limitless potential.”
The partnership between the two comes two months after news outlets in Korea reported that Roc Nation is expected to invest about $5 million in Musicow to become the startup’s second-largest shareholder with a 20% stake.
Founded in Korea in 2016, Musicow launched its online beta service in July 2017. It was designated as an innovative financial service by Korea’s Financial Services Commission in September 2022.
Following a year of preparation, the company rolled out music revenue securities, which it described as intangible property rights trust beneficiary securities.
In 2022, Musicow launched in the US with a KRW 6 billion (approx. USD $4.2 million at current exchange rates) investment from Seoul-based aerospace and defense company Hanwha Systems. In 2023, Musicow attracted an additional KRW 60 billion ($41.9 million) investment from its existing investor, Seoul-based venture capital and private equity firm STIC Investments.
“Partnering with Roc Nation is an incredible opportunity to drive innovation and redefine the future of our industry.”
Woo Rhee, Musicow US
As of September 2024, the company’s cumulative membership stood at 1.2 million, with total transactions reaching KRW 420 billion ($293m), according to Korean news outlet Global Economics.
In July 2024, Korea’s ET News reported that Musicow plans to accelerate its entry in the US by rolling out its music copyright service based on token securities.
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