It may not be the most obvious investment choice in these disruptive economic multiplication. But a new speculation is seeking to win over music fans to place their savings as well as their faith in rock 'n' roll.
The music executives behind Kaiser Chiefs and Primal Scream ar backing a new web site that will allow music fans to invest financially as substantially as emotionally in heatedly tipped new acts.
The venture, dreamed up by a music business attorney and backed by the founder of Friends Reunited, is being billed as the latest innovative funding model that could ply artists with an alternative to major labels.
Bandstocks will let the public buy a stake in an creative person 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 buzz off a copy of the album, a credit on the CD sleeve and a part of the profits from its sale and licensing. They testament also get priority ticket booking and the opportunity to corrupt limited version releases. For the creative person, founder Andrew Lewis claimed that Bandstocks would offer a better return than a major-label deal, as well as more freedom and restraint over right of first publication.
He hoped that if successful, artists would return to going subsequent albums using the scheme. But he admitted its success or loser would depend on attracting sufficient investiture from members of the public. The site, backed by investment from euphony manufacturing and distribution company The Vinyl Factory and four days 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 chance to do deals with a number of record labels simply I'm sure-footed about my music and the succeeding of Bandstocks, which seems to be a much more honest and guileless way to release records," he aforementioned.
The site is also looking to attract established artists. Former Boo Radleys guitarist and songwriter Martin Carr is to use the modelling to fund his succeeding album.
The founders of B-Unique, the label that is home to Kaiser Chiefs and others including Primal Scream and the Twang, volition 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 twelvemonth. Once the target figure is reached, the money will be spent on recording and marketing the album. Revenues from record album sales and licensing testament be divided up, with half exit to the artist, 30% to the Bandstocks holders and 20% to the website.
Lewis aforesaid Bandstocks would work with each artist to put together a bespoke performance. It will use the same independent distribution network as Arctic Monkeys, the White Stripes and Oasis. The shifting sands of the music business, pursy 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, receive sought to give their music off free or on a "pay what you like" basis.
Steve Pankhurst, the web developer who co-founded Friends Reunited in a back chamber before merchandising it to ITV for �120m in 2005, has taken a small stake in Bandstocks.
Sales pitchesGoing it alone
Radiohead released In Rainbows on a "pay what you like" basis to huge media interest, in front later reissuing it conventionally. Millions downloaded the album, featuring Thom Yorke, only research suggested that many more simply obtained it illegally anyhow. The Charlatans gave away You Cross My Path for naught in the hope of boosting live and licensing revenues.
Venture capital
Some private equity houses have through with deals with managers or artists to bypass phonograph recording labels.
Brands
Bacardi recently sign a sell with Groove Armada to fund new releases in return for being able to exercise their tracks and live events to promote its brand.
Advertising
A series of companies ar attempting to launch ad-funded services.
Subscription
Pay TV and broadband giant Sky plans a subscription service offering a integrate of millions of streaming songs plus some downloads for a set monthly fee. It has sign a deal with Universal, with other labels expected to adopt.
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