Business News Labels & Publishers
By Chris Cooke | Published on Monday 6 February 2023
JKBX, the new music rights investment platform headed up by The Orchard founder Scott Cohen, has announced a partnership with GTS Securities, which describes itself as a “global electronic market maker”. The two companies say that the strategic partnership “brings together the music industry expertise of JKBX and the financial markets, trading and technology expertise of GTS”.
Cohen announced the JKBX venture last year following his departure from his most recent role at Warner Music. He told Billboard at the time that the company would “fractionalise ownership of music royalties”, allowing lower level investors to invest into music rights and revenues by buying smaller fractional shares.
In terms of the royalties being fractionlised, JKBX said last week that it has already secured $1.7 billion in music rights with the aim of having over $4 billion worth when it properly launches later this year.
Confirming the alliance with GTS, Cohen said: “A handful of private equity firms, multinational corporations and major labels control the most valuable music rights in the world. JKBX’s 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”.
“This innovative approach enhances current global music business revenue streams and adds a multi-billion-dollar opportunity on top”, he continued. “We look forward to working with GTS and revolutionising the ownership of royalties”.
GTS co-founder and CEO Ari Rubenstein added: “GTS excels in making markets for every major financial asset class and providing enhanced liquidity through sophisticated, real-time pricing. This same expertise can be applied to music royalties, which represent the next exciting tradeable asset class. JKBX, with its music royalties platform and extensive catalogue rights, is an ideal partner for us”.
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