At the intersection of music and finance, Clouty turns real-time music data into tradable assets. Clouty is partnering with the world’s leading data providers to create an index that acts like a stock market for music that can be traded globally. Clouty, founded by David Umeh, identified the growing need for the music industry to manage risk and benefit from the same tools that other major industries have adopted. The creation of a tradeable index paves the way for the introduction of a host of tradable financial products, giving the music industry an opportunity for risk management capabilities, and offering institutional investors as well as the general public a chance to have a financial stake in music.
Clouty’s MUSIQ Index is the first of its kind – allowing users to track, buy, and sell interest in songs. In 2021, more than $5 billion was spent on music catalog acquisitions, and global music streaming has grown into a $30 billion market, from just $2 billion in 2015. This growth is on pace to reach $103 billion by 2030. Clouty’s MUSIQ 500 uses numerous inputs to capture the spot price for the top 500 songs in aggregate streamed in the U.S., consisting of various genres, including Rap, children’s, Country, Latin, R&B/Hip-Hop, Rock, Dance/Electronic, Pop, World Music and more. Using its proprietary technology to calculate the index value, Clouty intends to follow up with individual indexes tracking the top nine genres, along with a global composite, soon after the release of the MUSIQ 500.