Djooky, a music and fintech startup, has launched a new platform for fans to invest in music rights.
Building on the growing interest in music as an asset class, DjookyX offers a means for music creators and rights-holders to finance their projects, while fans can purchase rights in tracks of their choice and benefit from future royalties.
A primary marketplace allows music creators and record labels to auction current and future rights, be it in the song, recording, or both. Creators will auction claims for payment arising from the use of their music, and maintain ownership of their copyrights.
Fans who would like to invest are able to see a breakdown of how artists intend to use the funds generated, covering activities such as recording sessions, marketing campaigns and producing music videos.
The bidding follows a Dutch auction process, with the final price paid by successful bidders based on the lowest price offered across all winning bids. Once purchased, the portfolio of the rights is clearly displayed in an online wallet for each user.
All transactions are held in escrow by independent payment solution provider Mangopay, in order to ensure that users’ funds are protected. It also opens up DjookyX to investors across much of the world.
With a global approach to its model, DjookyX will launch with inaugural artists including Dominik Jesz from Germany, Yuni Marimba from South Korea, Blad P2A from the Solomon Islands and Loulia Esteves from France. Later in the week, they will be joined by Kler from Ukraine, the GrandMa from Russia, Tam Ben from Nigeria, and Djooky Music Awards’ first winner Gina Brooklyn from the USA.
Our vision is to ensure that all artists can enjoy equal access to the best support available to create and promote their music
Djooky is also set to launch a secondary marketplace early next year. This will offer a platform for fans to trade music rights purchased on the primary marketplace, further driving engagement within artists’ fanbases. Both marketplaces are run by Germany-based Djooky and have received approval from the country’s Federal Financial Supervisory Authority (BaFin).
With its core team operating across Los Angeles, Berlin, London, and Kyiv, and including multi-platinum US producer Brain Malouf (Madonna, Michael Jackson), Djooky also runs the Djooky Music Awards – a global online song contest, which launched in July 2020. This has since attracted nominations from over 140 countries, as well as voting registrations from 150,000 music fans.
Brian Malouf, Djooky co-founder, said: “Our vision is to ensure that all artists, no matter what their background or country of residence, can enjoy equal access to the best support available to create and promote their music. This is a significant milestone for us in our long-term goal of bringing much needed reform to the recordings business.”
Stefan Eghbalian, Djooky co-founder and head of corporate strategy, added: “By fostering a more diverse and inclusive community within the music industry, the DjookyX marketplace facilitates an interactive space where music lovers can be directly involved in creating the next big hit.”