JKBX, a music royalties investment platform, is poised to launch this week after receiving regulatory approval from the U.S. Securities and Exchange Commission (SEC). Scott Cohen, the CEO of JKBX, joins Yahoo Finance Live to shed light on this innovative approach to investing in the music industry.

Cohen emphasizes music's profitability, regardless of the era or artist. JKBX aims to capitalize on this concept: Cohen explains that if a song is generating revenue, shareholders have the ability to share in those profits. Music as an asset class is uncorrelated and is expected to record between 6 and 8% growth over the next decade, he notes.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

BRAD SMITH: If you're looking for an alternative investment, you might want to listen to this. Launching this week, Jukebox, a royalty share investing platform, is giving investors the opportunity to cash in to music.

It's offering securities backed by the royalty streams of songs from big name artists like Taylor Swift and Queen B, herself, Beyonce. Here to tell us more, we've got Scott Cohen, who is the Jukebox CEO.

Scott, thanks for taking the time here. You got to break this down, first and foremost, for us. I got $50 I decide to put it into, say, Beyonce. What happens?

SCOTT COHEN: Well, you have to think of it this way. Music makes money. Songs generate income. It doesn't matter what era. We can go back Frank Sinatra, Beatles, Led, Zeppelin, Madonna, Michael Jackson. Songs make money.

And when that money is earned, if you're a shareholder in one of those songs on Jukebox, you earn money too.

SEANA SMITH: Scott, what do your returns look like? I think when investors are out there, maybe, they're not familiar with what they should be expecting, if they were to invest their money into music royalties. What should the end return? Or what should they, I guess, potentially, expect?

SCOTT COHEN: Well, it depends on which song they invest in. So different songs will have different returns. Sometimes, they're more modest 3%, 4%. Sometimes, they can be 5% or more. It really depends on the song.

But what is interesting about it is music, as an asset class, is uncorrelated and continues to grow every year. I think Goldman Sachs pegged it at between 6% and 8% growth over the next decade or so.

So you can imagine if maybe a yield is 3% or 4% now. But what would it be five and 10 years from now?

BRAD SMITH: So how does Jukebox go about listing the songs? We're looking at a few of them right now. And I've actually got the site pulled up on my screen here as well. These are some well-known songs here.

SCOTT COHEN: Yeah. The music industry is complex. Copyrights are complex. So let me see if I can break it down as simple as possible. So an issuer buys a portion of the income that a song makes from the rights holder, the copyright holder.

That issuer then takes those income streams to the SEC to get qualified. And when it comes back, essentially, what they've done is convert the income from hit songs into regulated securities that are then listed on the Jukebox platform. So that anybody can buy shares.