Songtradr invests in Jaxsta, shares jump 250%
Jaxsta stock blew up in early trading on the ASX after the official music credits database announced a multi-year commercial agreement with Songtradr.
Early Thursday (10th September), Sydney-based Jaxsta confirmed a commercial agreement and an investment with Songtradr, the Los-Angeles-based global B2B music rights and licensing marketplace platform. Overall, the deal is worth A$1.92 million (including A$1.42 million via a convertible note).
Jaxsta’s shareprice was up by as more than 250% during morning trading.
Both parties see the new partnership as a win-win for their clients.
Through this exclusive arrangement, Jaxsta Pro members will gain direct access to Songtradr’s Neighboring Rights revenue collection service, while Songtradr will utilise Jaxsta’s music credits metadata to I.D. and scoop-up uncollected revenue.
Jaxsta
Jaxsta CEO and Co-Founder Jacqui Louez Schoorl is confident the relationship will create new revenue streams for music makers.
“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,” she says in a statement.
The partnership highlights “significant opportunities that exist in solving the data-centric challenges faced by the music industry,” she continues.
Songtradr CEO and Founder Paul Wiltshire adds, “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.”
Countless artists around the world have been seen their earnings dry up during the pandemic, though this partnership “allows us to increase our capacity to collect unidentified and unclaimed revenue during these unprecedented times,” Wiltshire continues.
Songtradr CEO and Founder Paul Wiltshire
When COVID-19 stuck, Jaxsta waved the fee for its its top-tier platform, Jaxsta Pro, for the rest of the year.
The industry sung the praises of the feel-good initiative, with the likes of ARIA, AIR and Merlin all tossing in their support.
Last month, Jaxsta announced membership for its subscription platform had surpassed 50,000, and is made up of songwriters, artists, engineers and producers, artist managers, record label representatives, industry association employees and more.
This article originally appeared on The Industry Observer, which is now part of The Music Network.