Scott Cohen-led startup JKBX partners with electronic market maker GTS to take music rights investing ‘to the masses’ – Music Business Worldwide

A new platform called JKBX (Jukebox) is in development that plans to offer “fans, retail investors and music lovers” the opportunity to invest in music royalties.

Unveiled as the new venture from music industry veteran Scott Cohen, JKBX claims that its platform will “transform the music industry” by offering shares in music royalties of hit songs and popular artists on its platform.

Cohen, who launched the Orchard in 1997 with partner Richard Gottehrer, was previously Chief Innovation Officer at Warner Music Group. He stepped down from the role at the major at the end of September.

Amongst his latest venture’s new hires are executives from Spotify, Robinhood, NTWRK, and COMCAST, including Whitney Gayle Benta (Chief Music Officer), Spotify’s former Global Head of Artist and Talent Relations.

JKBX aims to securitize and fractionalize royalty streams and allow them to be traded by retail investors.

The company says that it currently has over $1.7 billion in music rights exclusively secured and anticipates launching by the end of 2023 with over $4 billion of rights.

Ahead of the launch later this year, JKBX has announced that it is working with electronic market maker GTS Securities LLC.

The companies have signed a Memorandum of Understanding that creates a strategic partnership between the two firms, and brings together the music industry expertise of JKBX and the financial markets, trading and technology expertise of GTS.

GTS claims to be one of the largest designated market makers at the New York Stock Exchange and to have seen “success as a leading market participant in trading global equities, futures, fixed income and ETFs”.

“GTS excels in making markets for every major financial asset class and providing enhanced liquidity through sophisticated, real-time pricing.”

Ari Rubenstein, GTS Securities LLC

Ari Rubenstein, co-founder and CEO of GTS Securities LLC, said: “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 catalog rights, is an ideal partner for us.”

“This innovative approach enhances current global music business revenue streams and adds a multi-billion-dollar opportunity on top. We look forward to working with GTS and revolutionizing the ownership of royalties.”

Scott Cohen, JKBX

Scott Cohen, CEO of JKBX, added: “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. We look forward to working with GTS and revolutionizing the ownership of royalties.”

 Music Business Worldwide