A growing number of fans are experimenting with new investment methods by investing in copyright stakes in idol songs.
This new combination of Korean culture and investment comes as K-pop fans seek alternative and meaningful ways to show their support for their stars.
According to the company, there are two ways to invest in the song’s copyright. The first is to participate in an auction in which fans bid to buy shares of the song’s copyright. The other way is to buy or sell the shares on the platform market.
In the auction process, K-pop fans will attempt to outbid each other for a stake in the song’s copyright. In total, 4,700 shares are sold for each song, and around 400 songs are traded on the platform, the company said.
The auction price range is set at around 100,000 won ($ 85) each and goes up to 300,000 won, according to a Music Cow official. The people who donated 100,000 won hold the same share as the fans who offered the higher prizes.
But the high auction price doesn’t deter fans from getting into their favorite idols, as the profit goes to the songwriter.
Even though the songs aren’t written by their idols, fans believe their support will eventually reach their idols somehow.
In an interview with fans supporting K-pop boy group NU’EST, they said that by offering a higher price at auction, they wanted to ask songwriters to keep writing great songs for their idols, “said a Music Cow official.
When the auction is over, the song’s copyright shares are bought and sold on the platform.
Investors can make money by selling their shares for more than their auction price, however, fans don’t seem to be on board to flip the songs for profit, the official said. Instead, they often choose to keep the shares and earn money by receiving monthly copyright royalties.
“On average, the annual profit rate is around 8%. Copyright royalties are protected for up to 70 years after the death of the songwriter, ”the official said.
By Byun Hye-jin ([email protected])