The future of music

Bolero secures €2M in funding for their decentralized music rights marketplace

February 29, 2024
Bolero decentralized music rights

Key takeaways

  • Bolero’s €2 million investment demonstrates the significant potential of Web3 technologies to democratize music rights investment and provide artists with a new, fairer revenue stream.
  • The decentralized music rights platform addresses the critical challenges of the traditional music royalties system, such as complexity, inefficiency, and delayed payments, by leveraging blockchain technology.
  • Bolero not only simplifies the investment in music rights for fans and investors but also pioneers a dynamic marketplace for trading Song Shares, setting a new standard for how music royalties can be managed and monetized in the digital age.

Bolero, a Web3 marketplace allowing individuals and businesses to invest in fractional music IP, has recently secured €2 million. This significant financial infusion, led by the Dubai-based Web3 startup-focused XVC Tech, marks a pivotal moment for the Paris-based startup, highlighting its innovative approach to music rights royalties. 

With the backing of influential figures like French DJ Petit Biscuit and Belgian producer Le Motif, Bolero is set to redefine how fans and creators interact with music royalties.

Bolero secures €2M in funding for their decentralized music rights marketplace 1
Belgian producer Le Motif added over 400 tracks from the LEMOTIF LTD’s catalogue to the Bolero platform.

Bolero’s mission is to democratize the investment in music rights, offering fans and investors a chance to own a piece of their favorite songs. 

Their model not only promises a new revenue stream for artists but also challenges the traditional royalty system that has long been critiqued for its opacity and delays. 

By enabling fractional ownership of music rights, Bolero provides immediate liquidity for creators, starkly contrasting the often uncertain and protracted earnings from conventional royalty mechanisms.

This innovative platform resonates with the music industry’s growing demand for transparency and fairness, promising to not only revolutionize how royalties are managed but also align with the digital era’s push towards more equitable content distribution models.

The importance of decentralized music rights platforms

The landscape of music royalties faces several significant challenges in the modern era, impacting artists, songwriters, and the music industry as a whole. 

  1. Complexity and transparency: The distribution of royalties involves numerous parties like songwriters, producers, performers, record labels, and publishers, leading to intricate calculations and delays in payments.
  1. Outdated infrastructure and inefficiencies: Many collection agencies and rights organizations use outdated systems, causing inefficiencies, slower payments, and errors in distribution.
  1. Inadequate compensation from streaming: Streaming platforms often pay fractions of a cent per play, resulting in disappointingly low revenue for many artists, especially emerging ones.
  1. Administrative costs and lack of standardization: Involvement of intermediaries leads to administrative costs that reduce the amount of royalty collected by artists.
  1. Data discrepancies and timing issues: Incorrect metadata or missing information can lead to royalties not being paid correctly or being held up.
  1. Cross-border payment challenges: Cross-border royalty payments can be expensive due to currency conversion fees and regional banking limitations, reducing the actual amount received by artists

Royalty disputes are increasingly common in the music industry, leading artists, producers, and labels into complex legal battles over the distribution of earnings from songs and albums.

High-profile cases, such as Taylor Swift’s masters dispute with Scooter Braun over the ownership of her music catalog, and Spotify’s legal challenge from Wixen Music Publishing, demanding $1.6 billion for royalties owed, underscore the fraught landscape of music rights management.

Bolero secures €2M in funding for their decentralized music rights marketplace 2
Swift (left) has been on a dispute with Braun (right) over the ownership of her music catalog since he bought them in 2019. This led to Swift to re-record her music to gain control over it.

By exploring innovative solutions like blockchain technology and smart contracts, the music industry can address these challenges. Decentralized music rights platforms offer potential ways to streamline royalty distribution processes and enhance transparency for artists. 

Bolero is not alone in its quest to revolutionize music rights. Companies like Stockholm’s anotherblock and Tune.FM are also exploring the potential of blockchain to streamline royalty management.

Inside Bolero’s music rights platform

Exploring the inner workings of Bolero’s platform reveals a platform that simplifies the process of investing in music rights and also makes it accessible to a broader audience, ranging from dedicated fans to serious investors.

The first step to engaging with Bolero is straightforward: users create an account and fund it using conventional payment methods like bank cards or digital wallets. This accessibility ensures that anyone with an interest in music investment can participate without needing extensive knowledge of cryptocurrencies or blockchain technology.

Once an account is set up, users can browse the extensive catalog of available Song Shares. Each share represents a fractional ownership of the music rights (both masters and publishing) for a specific track. The price per share allows for entry at various financial commitments, catering to casual fans and serious investors alike. 

The process is designed to be as easy as selecting shares, adding them to your basket, and completing the purchase, with the shares securely transferred to your Bolero account.

Bolero secures €2M in funding for their decentralized music rights marketplace 3
A look at the Bolero decentralized music rights marketplace.

Because of the use of blockchain technology, the platform also facilitates the resale or trading of Song Shares. Holders can list their shares for sale, setting their price and quantity, making the decentralized music rights marketplace dynamic and fluid. This feature not only provides liquidity to the market but also allows for the realization of gains based on the performance of the music rights owned.

A pivotal aspect of Bolero’s platform is the collection and distribution of royalties. The platform automates this process, distributing earnings directly into users’ digital wallets. These payments reflect the proportional ownership of a song’s commercial revenues, offering a tangible return on investment. 

The frequency and amount of these payments vary based on the song’s success across different revenue streams, such as streaming, radio play, and other commercial uses.

The future of music investment

As Bolero continues to evolve, it aims to expand its offerings, including targeting institutional investors and enhancing its technological infrastructure. The platform’s commitment to transparency, efficiency, and user engagement positions it as a leading force in the future of music royalties and investment.

Bolero’s platform represents a significant step forward in how music rights are managed, traded, and monetized. Its blend of technology and user-centric design paves the way for a more inclusive and equitable music industry, where artists and fans alike can benefit from the value generated by music.

Sabrina Bonini

Sabrina Bonini is a content specialist, writer, and educator focused on Web3 and entrepreneurship. She started her career as an audio engineer and musician, and has been passionate about the intersection of music and cutting-edge technology since then.

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