Quick Link to another new business model for music

Here is a write up about a German effort to connect musicians and online fans directly, in this case with actual transfers of hard cold cash. Well, kinda:

German startup Sellaband.com is hoping to leverage the wisdom, and cash, of the crowd to produce high quality independent music for free download on their site. It’s a fascinating prospect even if it seems unlikely to succeed.The way it works is this: bands upload sample music to Sellaband.com, promote the heck out of their profile page and ask fans to chip in $10 per share of a recording that will be produced when the band raises $50,000. The fans can take their money back out at any time before the goal is met. Once recordings are made, they are offered for free on the Sellaband site, where ad revenue will be split between the bands (60%), Sellaband (30%) and the hired producer and manager. Fans each get a copy of the recorded CD and bands are free to offer them any other benefits, like concert tickets, that they wish. Sellaband retains rights on the music for 12 months. The company seems confident that bands will be able to find 5,000 supporters (called “Believers”) willing to put up $10 apiece.

One week since signing on, most of the 130 bands on the site have raised between $200 and $500. One Goth band from the Netherlands has raised $4500.

No comment before I think about it more, but I would love to hear yours.

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