eMusic

The Need

The music industry has long been a lucrative but complex space, with music rights becoming a hot commodity in recent years. As the shift from physical sales to digital streaming has accelerated, new revenue streams have emerged, and the market for music catalogs has exploded. Large financial institutions and private equity firms are now recognizing the value of music rights as a stable, long-term investment. 

Over the past two years, major investment firms like BlackRock, Blackstone, and KKR, alongside industry leaders like Universal, Sony, and Warner, have invested billions in acquiring music catalogs, while many renowned artists have sold their music rights to leading investment entities. Notable deals include the music catalogs of Bruce Springsteen, Katy Perry, Justin Bieber, Leonard Cohen, Bob Dylan, Sting, Whitney Houston, and others, amounting to over $12 billion.

However, the traditional process of acquiring and trading music rights has remained largely inaccessible to everyday investors, often limited to industry insiders or major institutional players.

The Solution

The growing demand for transparency, accessibility, and liquidity in the music rights market presents a unique opportunity for innovative platforms like eMusic Rights Exchange. By leveraging Web3 technology (Coinbase Blockchain platform), eMusic offers a fully regulated marketplace that democratizes the ability to invest in music rights. Investors can now buy, sell, and trade shares of music rights—whether it be individual songs, albums, or entire catalogs—just as they would trade stocks or other financial assets. This gives investors direct exposure to the potential upside of a growing and dynamic industry, while also benefiting from diversified revenue streams generated by streaming, licensing, and other uses of music.

For artists, this means better control over their work and more equitable compensation. It gives them greater control over the sale and monetization of their music, enabling them to bypass traditional industry gatekeepers and decide how and when their work is used. Blockchain technology ensures fair and transparent royalty distribution based on actual usage, addressing long-standing issues with royalty tracking. Artists can also access new revenue streams by raising funds for future projects through crowdfunding, selling portions of future royalties, and monetizing back catalogs that may no longer generate significant income. Additionally, the platform fosters direct fan engagement, allowing artists to connect with their audience through exclusive content, NFTs, and other digital merchandise, creating deeper financial and emotional support.

benefiting artists, creators, labels, publishers, investors and fans:

What Makes This Exchange Unique?

• The exchange allows the purchase of full rights to individual songs, albums, or even an artist’s entire catalog. Additionally, it will offer the option to create curated "baskets" like "80s Hits" or "Reggae Music."
• It introduces a secondary market for music rights, enabling the buying and selling of rights between artists and other rights holders.
• It offers a fair and efficient distribution of royalties to rights holders using digital means, with seamless integration into major existing streaming platforms.

How does it Work?

eMusic operates as a Web3-based platform that allows the trading of music rights in a regulated and transparent environment. This includes:

Music Rights Trading Platform:

• The core idea is that the platform enables the buying, selling, and trading of music rights, similar to how stocks or securities are traded on traditional financial markets.
• Rights to songs, albums, catalogs, or compilations are securitized, meaning they are turned into financial assets that can be traded on the exchange.
• Music investors, fans, and others can purchase fractional ownership of these music rights, allowing them to earn royalties and profits from music sales, streams, and other revenue-generating activities.

Making buying and selling of music rights a simple process:

1. Investor browses through the various offerings that are for sale and sees the financial information about each deal. 

2. Click to buy it.

3. After identification (KYC if needed), Immediately buys the music rights using every common payment method.

4. Gets a certificate of acquiring the rights.

5. The transaction is recorded, and the investor starts getting royalties' payments, when distributed.

Royalties and Payments:

• Royalties generated from music streams, sales, or other uses are recorded on the blockchain.
• Pay-per-use royalty distribution ensures artists and rightsholders receive payments based on actual usage, rather than a shared percentage of revenue.
• Investors who hold music rights through the exchange will receive royalties in proportion to their ownership.

Crowdfunding for New Music:

• The platform allows for crowdfunding, where fans and investors can directly support new music projects by investing in future songs, albums, or tours.
• Investors can earn a share of future royalties if the project is successful, creating a new avenue for artist financing.

Secondary Market for Music Rights:

• In addition to primary trading (initial sales of music rights), the platform also features a secondary market.
• This allows investors to trade their music rights with other investors, similar to how stocks are bought and sold after their initial public offering (IPO).
• The secondary market increases liquidity and makes it easier to buy and sell music rights whenever the investor chooses.

Artist and Rightsholder Tools:

• eMusic offers a complete suite of digital tools for artists, creators, and rightsholders. These tools help artists manage their catalogs, distribute music, and collect royalties.
• Artists can also raise funds for new creations by selling part of their rights or future royalties directly through the platform.

Monetization of Back Catalogs:

• Labels, publishers, and independent artists can use the platform to monetize older music catalogs that are no longer actively generating revenue.
• By selling portions of their rights to investors, they can unlock the value of their existing catalogs.

Blockchain Technology and Security:

• The exchange is built on Coinbase, one of the largest regulated cryptocurrency platforms, ensuring security and compliance with financial regulations.
• Transactions, including royalty payments, are recorded on the blockchain, which adds transparency and reduces the risk of fraud.

Regulation and Approval:

• The company has already submitted preliminary documents to the SEC and is working towards approval for launching a music rights trading exchange by 2025.
• This regulation adds a layer of protection for investors, ensuring the platform complies with financial and legal standards.