JKBX, the music investment platform backed by Spotify and Red Light Management, said Tuesday that yields on more than half the songs up for investment on the platform experienced substantial increases in 2023. That’s evidence, the startup’s execs say, that if it makes dollars, it makes sense.
Pronounced “jukebox,” JKBX’s first U.S. Securities and Exchange Commission-regulated offering went live in March, giving average Joe investors the chance to buy royalty shares that earn money when songs likeTen of the 85 songs in JKBX’s initial offering generated yields of 5% to 9.6% percent in 2023, while total revenue for songs in the listing rose3 9% in 2023 compared with 2022, the company said.
Institutional investors like insurance companies and pension funds have led recent demand for investing in music assets because the yields on music rights are typically resilient during broader market downturns and the asset class offers low-risk returns compared with other alternative assets. Institutional investors, private equity funds and high-net-worth individuals have poured billions into acquiring direct stakes in catalogs or backing companies that do, or into buying securitiesJKBX was founded in 2022 with the goal of bringing retail investors into the asset class by offering a cheaper, Securities and Exchange Commission-regulated way to invest in music. It
“JKBX empowers people to invest in music as a regulated security, bringing together investment fundamentals with true passion,” JKBX CEOsaid in a statement. “I believe that the fans that helped make these songs successful should also have the opportunity to share in the wealth.”