[A2k] Don't just buy the music, fans told - now you can invest in
big names of the future
Jeffrey A. Williams
jwkckid1@ix.netcom.com
Thu Aug 28 11:15:01 2008
Michelle and all,
Looks an awful lot like a illegal pyramid scam to me...
Instead why not just sell straigt up shares in the band like
most other stock offerings.
Michelle Childs wrote:
> --
> [ Picked text/plain from multipart/alternative ]
>
> >
> >
> >
> >> From: "guardian.co.uk" <noreply@guardian.co.uk>
> >> Date: 27 August 2008 12:54:41 BST
> >> To: michelle.childs@keionline.org
> >> Subject:] Don't just buy the music, fans told - now you can invest
> >> in big names of the future
> >>
> >>
> >> To see this story with its related links on the guardian.co.uk
> >> site, go to http://www.guardian.co.uk/business/2008/aug/27/musicindustry.investing
> >>
> >> Don't just buy the music, fans told - now you can invest in big
> >> names of the future
> >> Executives behind Kaiser Chiefs back new venture
> >> 10 pounds buys sleeve credit, CD and potential profit
> >> Owen Gibson, media correspondent
> >> Wednesday August 27 2008
> >> The Guardian
> >>
> >>
> >> It may not be the most obvious investment choice in these turbulent
> >> economic times. But a new venture is seeking to convince music fans
> >> to place their savings as well as their faith in rock 'n' roll.
> >>
> >> The music executives behind Kaiser Chiefs and Primal Scream are
> >> backing a new website that will allow music fans to invest
> >> financially as well as emotionally in hotly tipped new acts.
> >>
> >> The venture, dreamed up by a music business lawyer and backed by
> >> the founder of Friends Reunited, is being billed as the latest
> >> innovative funding model that could provide artists with an
> >> alternative to major labels.
> >>
> >> Bandstocks will let the public buy a stake in an artist in £
> >> 10 increments. Once funding reaches a preordained level, for
> >> example £100,000, the money will be released for the act to
> >> record an album.
> >>
> >>
> >> Investors will get a copy of the album, a credit on the CD sleeve
> >> and a percentage of the profits from its sale and licensing. They
> >> will also get priority ticket booking and the opportunity to buy
> >> limited edition releases. For the artist, founder Andrew Lewis
> >> claimed that Bandstocks would offer a better return than a major-
> >> label deal, as well as more freedom and control over copyright.
> >>
> >> He hoped that if successful, artists would return to release
> >> subsequent albums using the scheme. But he admitted its success or
> >> failure would depend on attracting sufficient investment from
> >> members of the public. The site, backed by investment from music
> >> manufacturing and distribution company The Vinyl Factory and four
> >> years in development, has launched with two artists. FrYars is a 19-
> >> year-old singer-songwriter who has been compared to Nick Cave,
> >> Rufus Wainwright and Lloyd Cole. Jersey Budd, another singer-
> >> songwriter, said he had turned down major-label deals to pursue
> >> funding through Bandstocks.
> >>
> >> "I had the opportunity to do deals with a number of record labels
> >> but I'm confident about my music and the future of Bandstocks,
> >> which seems to be a much more honest and transparent way to release
> >> records," he said.
> >>
> >> The site is also looking to attract established artists. Former Boo
> >> Radleys guitarist and songwriter Martin Carr is to use the model to
> >> fund his next album.
> >>
> >> The founders of B-Unique, the label that is home to Kaiser Chiefs
> >> and others including Primal Scream and the Twang, will help find
> >> and select artists to appear. Mark Lewis and Martin Toher, the two
> >> former major label executives who launched B-Unique in 2001, will
> >> act as artist and repertoire advisers.
> >>
> >> Lewis said he hoped albums by about 10 artists would be funded by
> >> Bandstocks in its first year. Once the target figure is reached,
> >> the money will be spent on recording and marketing the album.
> >> Revenues from album sales and licensing will be divided up, with
> >> half going to the artist, 30% to the Bandstocks holders and 20% to
> >> the website.
> >>
> >> Lewis said Bandstocks would work with each artist to put together a
> >> bespoke operation. It will use the same independent distribution
> >> network as Arctic Monkeys, the White Stripes and Oasis. The
> >> shifting sands of the music business, blown about by the winds of
> >> technological change and rampant digital piracy, have given rise to
> >> a range of new funding models. Some artists, such as the Charlatans
> >> and Radiohead, have sought to give their music away free or on a
> >> "pay what you like" basis.
> >>
> >> Steve Pankhurst, the web developer who co-founded Friends Reunited
> >> in a back bedroom before selling it to ITV for £120m in 2005,
> >> has taken a small stake in Bandstocks.Sales pitches
> >>
> >> Going it alone
> >> Radiohead released In Rainbows on a "pay what you like" basis to
> >> huge media interest, before later reissuing it conventionally.
> >> Millions downloaded the album, featuring Thom Yorke, but research
> >> suggested that many more simply obtained it illegally anyway. The
> >> Charlatans gave away You Cross My Path for nothing in the hope of
> >> boosting live and licensing revenues.
> >>
> >> Venture capital
> >> Some private equity houses have done deals with managers or artists
> >> to bypass record labels.
> >>
> >> Brands
> >> Bacardi recently signed a deal with Groove Armada to fund new
> >> releases in return for being able to use their tracks and live
> >> events to promote its brand.
> >>
> >> Advertising
> >> A series of companies are attempting to launch ad-funded services.
> >>
> >> Subscription
> >> Pay TV and broadband giant Sky plans a subscription service
> >> offering a mix of millions of streaming songs plus some downloads
> >> for a set monthly fee. It has signed a deal with Universal, with
> >> other labels expected to follow.
> >>
> >> Copyright Guardian Newspapers Limited 2008
> >>
> >>
> >
>
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