The SEC simply green-lit the sale of shares in successful tune – and followers can purchase them for $16
The value of music rights was confirmed by major investors last month with Universal Music Group’s blockbuster listing on the Amsterdam Stock Exchange.
Now, music rights as an asset class have gained further credibility in the US as we learn that the fan investment platform and licensing marketplace SongVest created what is believed to be the first public royalty offering.
SongVest has received the first SEC music licensing qualification that uses Regulation A + of the US Securities Act to sell music licenses.
The song that earned this SEC qualification is Hit the Quan (recorded by ILOVEMEMPHIS) and on Friday (October 8th), songwriter Buck Nasty’s share of the song’s producer licenses began to be publicly sold through the SongVest platform – at 1,950 SongShares on sale for $ 16 per unit license share.
“SongShares” are license shares, which the company describes as “the very first fractions of music licenses” of hit songs by great recording artists.
SongVest’s founder and CEO is Sean Peace, an original founder of the US online music marketplace Royalty Exchange.
His new company says access to exclusive music rights investment opportunities “is usually only available to industry insiders, private equity and institutional investors” and that SongVest aims to get fans into the equation through a secure online marketplace.
In addition to the possibility of already acquiring fractions of the Buck Nasty license fees, investors can use the SongVest marketplace to bid in non-binding SongShares VIP auctions for other songs.
Registered users can bid at these live VIP auctions with no obligation to buy at a minimum price of USD 20 and make non-binding reservations in order to keep their SongShares.
In a VIP auction, fans set the final price per license share before the bid for qualification goes to the SEC, offering for $ 22 per license share.
Fans with successful bids at the end of the VIP auction will receive the first notification and opportunity to purchase during a VIP sale that occurs after SEC qualification. SongVest informs MBW that it will take 10 days to get SEC qualifications.
After the VIP sale period, any remaining SongShares will be offered for sale to the public.
Fans who purchase SongShares receive royalties in proportion to their ownership each quarter.
SongVest investors have a personal dashboard where they can view details of their purchases, as well as music data and the history of royalty payments they receive each quarter.
All transactions are registered with an append-only database, which, according to SongVest, “offers the highest level of security and transparency for buyers”.
In each listing, SongVest says its “experts” will work with a seller to evaluate their catalog, determine the limited number of license shares available for sale, and compile a listing.
Elsewhere on SongVest.com, fans can register to view listings and bid at VIP auctions for license streams sold by major producers and songwriters Travis Scott, including his multi-platinum, top 10 single, Stargazing plus Pornography and Never Catch Me.
Other auctions announced today include: The royalties from authors and publishers from three major Beyoncé hits from their # 1 album Lemonade, including Sorry, and Daddy Lessons and Don’t Hurt Yourself feat. Jack White and the No. 1 single Electricity by Silk City and Dua Lipa Feat. Diplo and Mark Ronson) and many others.
These songs will be made available for sale in public offers after each is qualified by the SEC.
“Never before has the fan been both emotionally engaged and a legitimate interest in promoting the music.”
Sean Peace, SongVest
Speaking to MBW, Sean Peace said, “We are very proud to have reached this milestone and we are excited to introduce SongShares to music fans and our industry community.
“In 2007, I had the original vision of selling fractions of song catalogs in a novel way that could maximize value for both sellers and buyers with newly discovered synergies that had never been realized before.
He added, “When Reg A of the JOBS Act was introduced, the financial regulation change set the stage for us to build SongVest’s groundbreaking platform that is engagement-focused and allows fans with insider access to create their own investment playlist to create and share them with other friends.
“Never before has the fan been both emotionally engaged and a legitimate interest in promoting the music. With our new SongShares, fans can collect royalties from hit songs for the first time and team up with artists, songwriters, producers and labels in the same boat and row in the same direction. “
“This is a whole new way for creatives to unlock capital. I love the idea of giving back to the fans and involving them in the music. “
“This is a whole new way for creatives to unlock capital. I love the idea of giving back to the fans and involving them in the music.
“SongVest was really the only thing that made sense to me. It is the wave of the future. “Music business worldwide