Prepaid cards generate billions for retailers every quarter, and digital music is a natural fit for the concept.
Retailers like iTunes, Napster and the Zune Marketplace all offer prepaid cards, and that spells increased gifting and exposure to new customers. Additionally, recipients of cards often leave their gifts unused or partially redeemed, an easy buck from any angle. Download cards are also great promotional tools, and a way to retain interest among new fans. Another model involves the sale of downloads through cards at shows and events, a concept being pushed by upstart DiscRevolt. The company, which caters to independent artists, recently rustled $1.5 million in funding, according a report by the Atlanta Business Chronicle. The company allows independent musicians to create customized download cards and offer download redemption through the DiscRevolt website. Musicians can purchase the cards from DiscRevolt at a wholesale cost and subsequently offer markups to fans. DiscRevolt, founded by Mike Shamus and Joe Kirk, is based in Alpharetta, Georgia. The financing came from angel investors, according to the report.
Story by news analyst Alexandra Osorio.