KUKE Music Partners with Global Classical Music Giant Naxos to Launch "Music LEGO Engine," Reshaping Classical Music Future with AI, Blockchain and RWA
Rhea-AI Summary
KUKE Music (NYSE: KUKE) has announced a groundbreaking strategic partnership with Naxos Music Group, the world's largest independent classical music group. The collaboration introduces the innovative "Music LEGO Engine", a revolutionary platform combining AI, blockchain, and Real World Assets (RWA) technologies.
The initiative will modularize KUKE and Naxos' extensive classical music catalog into standardized, licensable "modules" through the Naxos Music Platform (NMP). This blockchain-based system will enable NFT-based copyright certificates, automated royalty distribution, and enhanced rights verification. The platform leverages Naxos' vast network across 100+ countries and catalog of over 3 million audio tracks.
The partnership aims to transform classical music creation, rights management, and monetization through AI-driven composition, intelligent orchestration, and tokenized copyright assets within regulatory compliance.
Positive
- Partnership with Naxos Music Group provides access to over 3 million audio tracks across 100+ countries
- Innovative Music LEGO Engine enables new revenue streams through modular copyright licensing
- Blockchain integration offers enhanced copyright protection and automated royalty distribution
- Platform creates opportunities for AI-driven music creation and copyright monetization
Negative
- Implementation complexity of combining AI, blockchain, and RWA technologies poses execution risks
- Regulatory compliance challenges for tokenizing music copyright assets
- Potential resistance from traditional classical music stakeholders to AI-driven creation
News Market Reaction
On the day this news was published, KUKE declined 7.14%, reflecting a notable negative market reaction. Argus tracked a trough of -21.3% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $64M at that time. Trading volume was very high at 4.5x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Beijing/Hong Kong, Aug. 06, 2025 (GLOBE NEWSWIRE) -- KUKE Music (NYSE: KUKE), a world-leading classical music content service provider, today announced a strategic collaboration with Naxos Music Group, the world’s largest independent classical music group. With a catalog of over 3 million audio tracks spanning more than 100 countries and regions, Naxos is the undisputed global leader in classical music. Under this partnership, Naxos will leverage its unparalleled content resources and service infrastructure to support KUKE Music’s exploration of artificial intelligence (AI) innovations, blockchain and RWA (Real World Assets) in classical music. The collaboration centers on building a blockchain- and AI-powered "Music LEGO Engine" designed to fundamentally revolutionize the creation, rights verification, application, and value circulation of musical content. Within the compliance framework, tokenizing the company's music copyright assets as RWA.
Building the "Music LEGO Engine": Modular Copyright Drives Tech Revolution
The core initiative—dubbed the "Music LEGO Engine"—will deeply structure and modularize KUKE Music and Naxos’ vast, authoritative global classical music catalog. Copyright elements (e.g., melody fragments, harmonic structures, orchestration combinations, performance styles) will be deconstructed into standardized, independently identifiable, licensable, and combinable "modules," akin to LEGO bricks. This innovative framework will serve as critical infrastructure for future AI training and copyright monetization:
Validating Core Capabilities: The project will test KUKE Music’s ability to integrate structured copyright data and complex technical collaboration, laying groundwork for future tech-driven products.
Redefining Internal Synergy: It will establish a new paradigm for efficient collaboration between musicians and AI teams, bridging content-technology gaps and fueling organizational innovation.
Foundational for Future Growth: The Engine will underpin KUKE and Naxos’ upcoming AI-powered music creation/analysis tools and blockchain-based copyright monetization products (e.g., NFTs, financialized copyright trading), providing scalable content and operational models.
Naxos Music Platform: Blockchain Backbone for the LEGO Engine
The Naxos Music Platform (NMP), the blockchain backbone of this collaboration, will empower the "Music LEGO Engine" with robust rights verification, traceability, and value distribution. Naxos' global content network and user base will directly serve KUKE Music's blockchain strategy through the NMP platform:
Rights Verification & Traceability: Each music asset (including "LEGO modules") receives a unique, immutable NFT-based copyright certificate on-chain, recording creator, licensor, and holder history to enhance enforcement and reduce disputes.
Fair & Sustainable Ecosystem:
Transparency: Smart contracts automate royalty/licensing distribution, replacing opaque legacy systems with auditable on-chain execution.
Fan-Driven Economy: NFT holders (fans/investors) share revenue based on contributions (e.g., plays), fostering a value-aligned community.
Global Payments: Platform tokens enable borderless settlement, eliminating currency barriers.
Sustainable Loop: Integrated tokenomics (payments, profit-sharing, buyback/burn) and NFT mechanisms drive long-term growth.
Building a self-sustaining growth mechanism for long-term development
The financialization interface and global reach of the "Music LEGO Engine": NMP’s mature NFT royalty-sharing system and transparent on-chain revenue distribution mechanisms provide an ideal testing ground for the licensing, combinatorial valuation, and fractional financial investment of "Music LEGO Modules." Modular copyrights enable finer-grained, more flexible transactions and value capture on NMP. Crucially, by leveraging Naxos’ extensive network spanning over 100 countries and regions, its massive user base, and its vast copyright catalog (which exclusively supplies core modular materials for the project’s initial phase), KUKE Music’s "LEGO Engine" and blockchain financialization initiatives will gain unprecedented global market access and content support. All global content and services from Naxos will be integrated into and dedicated to serving this innovative project under KUKE Music as a listed company.
Future Roadmap: AI, Blockchain and RWA in Concert
Beyond infrastructure, KUKE and Naxos have defined clear expansion paths through the Music Lego engine and Naxos Music Platform:
- AI-Driven Creation and Commercialization:
The modular classical music "Music LEGO Modules" will serve as premium training data for professional AI models, enabling practical applications such as AI-assisted composition, intelligent orchestration, and stylized music generation. Simultaneously, the Naxos Music Platform (NMP) will facilitate on-chain rights verification and automated royalty distribution for AI-generated works. - Open Creator Ecosystem: NMP will open to independent musicians (especially classical) to upload, modularize, and mint NFT-based works, accessing global markets via the Naxos-KUKE network.
- Innovative Fan Engagement: Combining the flexibility of the "Lego" module with a global fan base, "Fan blind boxes" (containing rare music snippets/rights) and limited NFT albums will deepen artist-fan connections.
- Copyright Monetization: Exploring the possibility of tokenizing "LEGO modules" for staking, lending, or portfolio investment will unlock new financial potential and leverage the AI technology for KUKE’s global assets. Within the compliance framework, tokenizing the company's music copyright assets as RWA.
About KUKE Music (NYSE: KUKE)
KUKE Music is a global leader in classical music licensing and subscription services. With a vast premium catalog, it promotes classical music culture through tech innovation. Its next-gen blockchain streaming platform uses decentralized technology, smart contracts, and NFTs to build a transparent, fair, and sustainable music economy.
About Naxos Music Group
Naxos Music Group is the world’s largest independent classical music label, with over 3 million tracks and operations in 100+ countries.
Forward-Looking Statements
This press release contains forward-looking statements. Actual results may differ materially due to risks and uncertainties.
For further information, please contact.
Kuke Music Holding Limited:
Investor Relations
Email: ir@kuke.com
FAQ
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