Bands are typically cash-strapped and starving, and that makes it difficult to produce high-quality releases and tour.
Labels – independent or major – have traditionally offered early-stage financing, though serious sales downturns have dried that source considerably.
Against that backdrop, alternative financing vehicles have emerged. That includes SellaBand, a concept that encourages fans to contribute funds to their favorite developing artists. The populist approach sparked a distribution deal with Amazon UK in December, and others are now stepping forward.
Just recently, independent digital distributor The Orchard has agreed to push successfully-financed groups. On the branding side, Heineken Netherlands has joined to sponsor SellaBand live events and compilations featuring winning acts. SellaBand offers $10 shares on participating bands, and offers production and studio expertise once a group crosses the $50,000 threshold.
Story by news analyst Alexandra Osorio