Need to spend money on Taylor Swift and Beyoncé? Now you possibly can.

A brand new music investing startup known as JKBX lets followers share of their favourite musicians’ success by permitting individuals to purchase securities whose worth derives from an artist’s streaming royalties.

For examples, traders can spend money on songs akin to Beyoncé’s 2009 hit “Halo,” Adele’s “Hearsay Has it,” and Taylor Swift’s “Welcome to New York,” amongst others. 

“Each time you hear a tune, someone’s getting paid. That someone could possibly be you,” the corporate says on its web site. 

For now traders should purchase, however not promote, shares through JKBX. The corporate makes cash by charging a transaction charge when prospects purchase inventory. 

Streaming royalties can contribute enormously to musicians’ wealth. For instance, Swift is estimated to have earned $175 million through her contracts with music streamers together with Apple Music, Spotify and others, in response to Bloomberg.

Each time a tune is performed on a streaming platform, in addition to in a film or tv present, it generates earnings for the rights proprietor. JKBX is letting most people get a slice of that revenue stream. Nonetheless, the returns aren’t astronomical, and different sorts of investments supply higher returns.

“Returns for the sort of safety are 3% — lower than high-yield savings account,” Wall Street Journal reporter Alexander Osipovich instructed CBS Information. 

Excessive-yield financial savings accounts presently supply rates of interest of as much as 5%. After all, that does not give traders the vicarious buzz of sharing of their favourite artists’ success.

“It could be of curiosity to followers who simply wish to maintain shares of songs that they like,” Osipovich mentioned of JKBX’s enterprise mannequin.

In the meantime, investing in particular person songs can also be a bet since tastes change. 

“There’s additionally a speculative side to it. As a result of probably, as an example an previous tune will get utilized in successful film or TV present or it simply has an enormous revival, then these funds may abruptly enhance considerably,” he defined. 

Megan Cerullo

Megan Cerullo is a New York-based reporter for CBS MoneyWatch masking small enterprise, office, well being care, shopper spending and private finance subjects. She repeatedly seems on CBS Information Streaming to debate her reporting.