Jaxsta Limited (ASX: JXT), the world’s largest public-facing, dedicated database of official music credits, today announced a strategic five-year commercial agreement in conjunction with an investment with the global B2B music rights and licensing marketplace platform, Songtradr. The total upfront value of the deal, including AUD$1.42 million via a convertible note, is AUD$1.92 million.
This exclusive five-year commercial agreement enables an integrated platform solution providing Jaxsta Pro members direct access to Songtradr’s Neighboring Rights revenue collection service. The total worldwide Neighboring Rights market was estimated to be worth US$2.6 billion in 20191.
The Jaxsta and Songtradr integration will enable Jaxsta Pro members who have claimed their profile to utilize Songtradr’s platform and tools to initiate collection and ongoing management of their Neighboring Rights income. Songtradr will utilize Jaxsta’s music credits metadata to assist in the identification of uncollected revenue resulting from the performance of certain sound recordings on broadcast and digital/online media.
The partnership with Songtradr and the establishment of this new revenue stream for Jaxsta and its data partners further validates Jaxsta’s tech-enabled mission of providing accurate credit for music creators and rights owners, positioning Jaxsta as a valuable partner to the music industry.
Jacqui Louez Schoorl, Jaxsta CEO and Co-Founder, stated, “We are thrilled to be partnering with the team at Songtradr. We believe this new revenue-generating product will also drive increased adoption of Jaxsta Pro subscriptions. This partnership with Songtradr highlights the significant opportunities that exist in solving the data-centric challenges faced by the music industry. Songtradr can provide an enhanced global product leveraging the use of official metadata only available through Jaxsta. This service provides an additional benefit that Jaxsta Pro members will be able to access as we continue to grow the capabilities of the platform.”
Songtradr CEO and Founder Paul Wiltshire added, “Jaxsta has solved a significant piece of the music industry data dilemma and has built a scalable technology solution that integrates neatly into our music rights ecosystem and licensing marketplace. Many artists and musicians around the world have been impacted by loss of earnings from live performance and this partnership allows us to increase our capacity to collect unidentified and unclaimed revenue during these unprecedented times.”
In response to the COVID-19 pandemic and its impact on the live music industry, Jaxsta Pro will be free for the remainder of 2020 in support of the music community through this difficult period. In September, Jaxsta Pro had surpassed 60,000 members. Additionally, tens of thousands of artist profile pages have been claimed, denoted by a green “verified” tick on the profile pages of artists and industry professionals such as P!nk, Tool, John Legend, Questlove, Rita Wilson, Shakira, Harry Styles, the Ramones, Alicia Keys, H.E.R., Bruce Springsteen, Pink Floyd, GRAMMY-winning mastering engineers John Greenham and Emily Lazar, GRAMMY-winning mix engineers Serban Ghenea and John Hanes, GRAMMY-winning producer Joe Chiccarelli, and more.