British Start-Up Aggregates Music Investors
February 16, 2011 at 8:22 AM (PT)
A new kind of music company has launched in the U.K., providing promotion and A&R services for artists, while allowing fans to put their money where their ears are -- so to speak -- and invest in their favorite artists.
According to a report on MASHABLE, MY MAJOR COMPANY features approximately a dozen artists who fans can sample, invest in, and share profits with if/when the artists catch on. An artist must raise 100,000 pounds (approximately $160,000) in order to qualify. The money can then be used to tour, release and market music.
Fans/investors -- who can also interact with the artists and offer advice -- receive 40% of all revenue their artists raise. MY MAJOR COMPANY also receives 40%, while the artist receives 20%.
CEO PAUL-RENE ALBERTINO -- former CEO of WARNER MUSIC INTERNATIONAL -- said, “This generation needs professional support to monetize. Record labels cannot sign the 10 artists that they used to sign ... now they sign two. So we offer a solution whereby we can take on more artists, but we put the same muscle behind them to break them into the market professionally.”
ALBERTINO launched the first version of MY MAJOR COMPANY in FRANCE in 2008, and credits the service with launching 10 artists, including GREGOIRE, who has achieved great popularity there.