Is Crowd-Funding the Next Revenue Maker for the Music Business?

By Patrick Nelson | February 18, 2014 | The Mothly Fool – Buried in crowd-funding web site Indiegogo this month is an unusual proposal for those wishing to get in on the occasionally lucrative music business.

Start-up Gideen wants you to contribute to its website development costs via Indiegogo, and in return Gideen will let you choose a song from its pre-launch song database, and give you a third of the future music income of that chosen song for five years.

Your cost is $25 to make the Indiegogo pledge.

Twenty-five bucks for a third of a Madonna song? Madonna reportedly made $125 million in 2013.

Not quite. The database that Gideen wants to build is of undiscovered, developing-level songs, not established music by known-quantity artists. Madonna and her established ilk will be nowhere to be found.

Business model

Gideen’s unique business model is to create a website—using existing seed capital and future Indiegogo contributions, and then populate that website with undiscovered music, which it will then sell a piece of.

It reckons that by doing that, it will provide financially for music creators, and also investors: The investor gets a stake in the future revenue—if any—of the intellectual property.

The fly in the ointment is obviously that the music is unproven, and there may well be a very good reason that it is—there’s no guarantee that it’s any good. Indeed, this could be the failing in the entire business model.

Gideen calls this undiscovered music market a “secondary” market and says it’s estimated to be 70 times the existing primary market … though Gideen doesn’t provide anything to back up that claim. The primary market is the Madonnas and Lady Gagas of this world.

What’s interesting is that you get to choose the musicians, producers, and songwriters that you want to invest in after listening to tracks. So you get to play music mogul, and if you trust your “ears” and reckon you can spot a hit—or better, longevity, the holy grail of the industry—you could conceivably recoup your investment.

read more: http://www.fool.com/investing/general/2014/02/18/is-crowd-funding-the-next-revenue-maker-for-the-mu.aspx

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

VentureBeat10 reasons the $1 million crowdfunding cap should be $20 millionVentureBeatIt's been18 months since the final rule of the JOBS Act went into effect, allowing equity crowdfunding. In those 18 months, everything proponents of the rule said would happen (and none of what [...]

Small Business TrendsButcher Shop Startup Discovers Crowdfunding Magic Via IntuitSmall Business TrendsWhat startup entrepreneur hasn't dreamed of borrowing Cinderella's fairy godmother or Aladdin's genie to make their every wish come true? While they weren't necess [...]

The IndependentFrench Chateau bought by 10000 people through crowdfunding schemeThe IndependentIn countries where castles aren't snapped up by The National Trust and immediately furnished with a tearoom and gift shop, other ways must be found to preserve historical buildings. The [...]

Crowdfunding sites help Boulder County residents raise money to pay for treatmentsBoulder Daily CameraHer health insurance, once she reached the $2,000 deductible, covered most of the chemotherapy, but she has been receiving extra treatment at the Helios clinic in Boulder and is parti [...]

CurbedReal estate crowdfunding expands into more niche marketsCurbedTo those unfamiliar with real estate crowdfunding, the Fair-Haired Dumbbell development in Portland may be just the kind of wacky, esoteric project one envisions when imagining what happens when strangers pool funds o [...]

The Union LeaderSCORE Q&A: Creative ways to find fundingThe Union LeaderQuestion: I have invented a product that assists in training young ballplayers to hit a baseball. I lack the financial resources to develop and market the product, so I've been thinking about launching a [...]

http://www.innovationaus.com/Brakes on equity crowdfundinghttp://www.innovationaus.com/The government failed to pass amendments to the equity crowdfunding regime before the end of the year, meaning private companies won't be able to access the funding method until August next yea [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |