MUSIC INDUSTRY BLOG

When Sellaband launched in August 2006, it introduced music fans and unsigned artists to a revolutionary approach to meeting and collaborating with one another.  By providing a financial incentive at the very core of its proposition, the German upstart pioneered an investment platform that provided fans with a stake in their favourite artists’ assets, and artists with a means of raising capital for recording and distribution from the folks who care about them the most: their fans.  A seemingly far-fetched idea, the platform took off and, today, boasts an extensive fan funded artist base that has managed to raise over $2,200,000 collectively.  Although a handful of fan funded music dotcoms exist, including SliceThePie and TheNextBigSound, Sellaband is leading the trend that has yet to illustrate its full potential as an industry shifting force.  The company is now setting its sights on the US market with a high-profile endorsement from Chuck D.

Slicethepie and Bebo announced a co-venture this week whereby Bebo members will have the opportunity to grab the A&R seat at Slicethepie’s artist career-funding network.  Strikingly similar in concept to Sellaband, Slicethepie is tapping into the leading British social network’s community assets while Sellaband remains very much an independent platform.  The music “business” role-play idea has been embraced by a number of players in one form or another, including Songness, TheNextBigSound, and  Soundout, a Slicethepie imprint, based on the belief that if potential fans are provided with both a true hand in an artist’s fledgling career as well as a financial incentive, consumer loyalty and word-of-mouth shall follow.  Perhaps the shape of things to come.

The partnership between Groove Armada and Bacardi was a hot topic at Midem this year and yet another example of a major music act dumping its label (Sony, in this case) and looking for music-friendly partnerships outside of the traditional music industry ring.  The agreement is intended to help Bacardi become a stronger music-centric brand in the minds of new prospects and tap into Armada (and alike) fans.  Armada will be enjoying some well-funded creative and business license, including greater control over several facets of their business, namely a new digital distribution model slated for launch this year.

Matt Morissroe, A&R Director of Bacardi’s music division, B-Live Records, spoke in length about the deal’s schedule and the two parties’ plans to “share” new Armada music and release it independently, share being the operative word, not just in terms of this deal but also as the thematic underscore to Midem this year, the largest and most influential music industry summit.