Music Stock Exchange Platform Enables Royalty Investing

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Accredited investors can now make equity investments in music copyrights recorded by artists such as Kenny Rogers, George Strait, Reba McEntire, Billy Ray Cyrus and LeeAnn Rimes on

The Music Stock Exchange® enables investors to purchase direct ownership shares in royalty-generating copyrights. In many ways, these “song shares” are to music copyrights what common stocks are to corporations. Holders receive dividend-like payments on a periodic basis in the form of mechanical, performance and synchronization royalties.

Current offerings include compositions recorded by artists such as Kenny Rogers, George Strait, Reba McEntire, Billy Ray Cyrus and LeeAnn Rimes. Most of the featured song offerings have a history of stable earnings, hence the potential for cash-on-cash yields.

TweelX is also featuring a select handful of unrecorded songs composed by well established, Grammy-nominated songwriters such as Steve Dean, Will Robinson and Billy Montana. These songs do not currently earn royalties because they have not yet been recorded by major artists and have not otherwise been licensed for public use. However, these startup-like songs are always one event away from becoming hits. Music Row veteran and TweelX co-founder, Jeff Tweel, explains:

“Take a song like Steve Dean’s 'These Tonights.' It has a solid demo recording and a contemporary, pop-country sound that’s well suited for radio. Our staff pitches the demo to record labels when their artists are looking for songs to put on new albums. If the song were to get selected for a Hunter Hayes or Rascal Flatts album, then you’d certainly want to own a piece of the copyright. It would yield substantial royalties for a long time.”

A particularly unique and attractive feature of the Music Stock Exchange® is its proprietary system for selling and administering fractions of copyrights and their respective royalty earnings. This system enables equity investing in music royalties on a micro level.

For decades, sophisticated parties have invested in song royalties. Large portfolios of copyrights (known as catalogs) are routinely bought and sold by music publishers, private equity firms, pension trusts and other institutional investors. Equipped with specialized knowledge of the industry, these investors typically commit large amounts of capital to a given transaction. Six, seven and eight figure transactions are commonplace. Unfortunately, individuals outside of the music industry rarely have the ability to invest smaller amounts of capital in song royalties. However, recent changes in federal securities law have opened up traditionally exclusive alternative asset categories to broader audiences.

“We have seen Title II of the JOBS Act encourage new platforms to democratize venture capital and real estate investing. AngeList and Fundrise are notable examples in these respective areas. Similarly, our system for selling and administering fractions of single-song copyrights aims to democratize royalty investing,” says Tweel.

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Chase Tweel
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