Roc Nation Enters The Market
ROC Nation, founded by Jay-Z, is set to enter the Royalti-Roylti market by developing musical royalties through a partnership with the South Korean company Fintech Musicow, thus positioning itself as a direct competitor to JKBX in the United States.
The new platform, which is scheduled for launch in the first quarter of 2025, will enable owners of musical rights to “reliably fractionate royalties from their songs and sell shares, allowing fans to earn alongside them,” Roc Nation stated on Thursday (January 23). Early registrants will receive 10 dollars in their Musicow Wallet upon registration.
Musicow purchases copyright from original creators and divides the rights into smaller portions, enabling participants on the platform to buy shares in the copyrights.
Competition In The Royalty Market
The service is similar to that currently offered by JKBX, which has already established a footprint in the market. JKBX began its soft launch in 2023, initially allowing users to reserve only royalty shares while awaiting the approval of regulatory authorities, including the US Securities and Exchange Commission. Following the anticipated resolution by JKBX regulatory authorities in March 2024, the platform will facilitate actual purchases of royalty shares.
“Our mission is not only to support and expand the capabilities of artists, providing tools and services necessary to create the best musical ecosystem, but also to give everyone access to the financial opportunities available in the music industry.”
J.ay Brown, Roc Nation
Through JKBX, users can invest in royalties of popular hits from various superstar artists including Beyoncé, Ryan Tedder, Timbaland, Jonas Brothers, Camila Cabello, Major Lazer, Ed Sheeran, Louis Bell, and many others.
Roc Nation emphasized that its partnership with Musicow will enable Superfans to “earn income alongside their favorite artists, presenting musical fees as an alternative asset class.”
“The music industry is transforming into a shared ecosystem where fans and creators can earn together,” stated Vice-chairman Roc Nation, Jay Brown.
Wu Ri, CEO of Musicow US, added: “The partnership with Roc Nation is an incredible opportunity to spearhead innovation and shape the future of our industry. I am confident that together we have the vision, experience, and enthusiasm to create transformative growth and unlock boundless potential.”
Investment And Future Plans
This partnership comes two months after reports in Korea indicated that Roc Nation is expected to invest 5 million dollars in Musicow, making it the second-largest shareholder with a 20% stake in the startup.
Founded in Korea in 2016, Musicow launched its online beta service in July 2017 and was recognized as an innovative financial service by the Korean Financial Services Commission in September 2022.
Following a year of preparation, the company introduced securities for music income, describing them as innovative financial instruments for ownership.
In 2022, Musicow expanded to the USA with Circle of 6 billion (approximately $4.2 million at current exchange rates) investments in an aerospace and defense company, Hanwha System, and further attracted additional investments in 2023 from existing venture capital firms and private investments totaling CRO 60 billion ($41.9 million).
“The partnership with ROC Nation is an incredible opportunity to introduce innovation and shape the future of our industry.”
Wu Ri, Musicow US
As of September 2024, the total membership of the company reached 1.2 million, with total transactions amounting to Circle 420 billion ($293 million), according to reports from Korean news Global Economy.
In July 2024, ET News reported that Musicow plans to accelerate its expansion in the United States by launching its music copyright service based on token securities.
