The practice of crowdfunding is becoming more and more popular, with companies receiving support for anything from kitchen tools to video games. There is room for music in the crowdfunding world too, with supporters often getting rewards like pre-orders, merch, or presales for concert tickets.
Songbook, a London-based crowdfunding platform, is seeking to raise incentives for fans to support emerging talent. Songbook has an interesting approach to crowdfunding; When a fan crowdfunds an artist’s album, EP, or single, they will receive a cut of the master/publishing rights from three to 25 years.
Just for a little background, master rights refers to the actual sound recording of the song, which is typically owned by the artist’s record label if they are signed, or the artist themselves if they are independent. Publishing rights refer to the composition itself, the written music.
In a statement made to Music Business Worldwide, Songbook CEO Chris Read stated that the company is “an investment platform solving the two main problems artists and labels have. [A] lack of cash and sustained promotion — whilst making music exciting again for music fans.”
The company has already had a success story in Albert Gold, who received funding from 33 fans to record three covers he wanted to release. Once the songs are released, those 33 fans will earn royalties for seven years afterward (MBW).
In terms of cuts, Songbook themselves draws 10% of the crowdfunding raise and 10-20% of the rights revenue. Each project varies, but fans can earn from 10% to 30%.
Crowdfunding can be a great opportunity for startups to achieve the goals they have for their business and provides an incentive for people to support. I am greatly intrigued by Songbook’s concept and like the idea that they are wanting fans to become more involved in the creation of the music. It is a great way to establish a relationship between artists and listeners.
Despite my overall optimism for the company, I do have some concerns. My previous post discussed the current legal troubles Pledgemusic is facing regarding unpaid royalties to their clients. This incident no doubt could worry both artists and potential backers about receiving the royalties they are due. Songbook is a small company at the moment, receiving a lot of attention. Time will tell whether they will be able to handle many projects at once and have their finances in order.
Absolute Music 