Opinion | As culture and finance intersect, a chance to invest in music royalties and support Cantopop
- Platforms like Musicow in South Korea are tapping K-pop fans by financing original works and creating a new platform
- Hong Kong’s finance and creative industries can learn from this and collaborate to engage audiences, encourage creators and diversify investments
At a shopping centre or in the comfort of home, music accompanies us everywhere. But have you ever imagined being able to earn royalties on your favourite songs?
While we traditionally associate copyright trading with buying the rights to an illustration or literary work through licensing and assignment, it can take a variety of forms. A platform has recently emerged in South Korea that lets retail investors buy the rights to song royalties.
Musicow works by paying artists a sum upfront for rights to their song royalties, before splitting the rights into smaller shares and putting them up for auction. Based on streaming activities, investors receive royalties each month and can also trade their shares through the platform. So far, the company has accumulated more than 200 billion won (US$157 million) in investments, with transactions worth twice that.
Fractional investment platforms like these are particularly welcomed by young investors. The barriers to entry are low – some rights are available for less than HK$100, or US$13 – and it is a new way to engage with and own a small stake in the cultural works they enjoy.
