Not quite sure about SellaBand (hat tip Nick Taylor and Springwise), but they certainly seem to have figured out that the fans are where the money ultimately comes from, and if the labels are now even abusing the fans as well as the musicians, that you might as well go back to first principles and try and help the musician make a deal with their fans directly.
A strange thing to focus on the fans collectively purchasing a recording session, but it’s a key phase I guess.
Usually, the people who stump up the funds get to share in the rewards. In this case they get a copy of the music on a limited edition CD and 50% of net profits from conventional sales of the CD. The other 50% goes to SellaBand. Artists get to purchase CDs at a fixed price – presumably to sell them at whatever they can get for them.
At first I thought this was perhaps another case of falling between two stools (audience procurement of copyleft vs traditional copyright publishing). Audience stumps up the advance, gets a free copy. Publisher gets the IP and all commercial exploitation. Artist gets popularity…
However, at least in this case the punter gets a cut:
The Believer is also entitled a percentage of 50% pro rata of the Net purchase price received by SellaBand in relation to sales of the regular version of the CD to third parties.
However, there’s more than just CD sales to think of…
All rights related to the CD tracks, including intellectual and industrial property rights like copy- and neighbouring rights and Master rights, shall exclusively be vested in SellaBand
The artist gets 60% of the publishing income – with none to the fan.
Any website advertising revenue is split equally with artists and fans, e.g. 33% to SellaBand, 33% to 1,000 artists, and 33% to each artist’s 5,000 fans, but is only paid out if/when it amounts to more than $1 (and a 5,000th of 33% of a thousandth of total ad revenue implies some big money changing hands before a fan sees a single buck).
So, in this new enlightened deal:
- The artist gets the break of a recording session (financed by the confidence of their fans) and 60% of publishing income.
- The fan gets to pay in advance for a CD that everyone can later download for nothing, and 50% of revenue from sales of CDs (to those still buying them).
- The publisher gets full rights to the music and near zero risk.
Business as usual eh?
maybe you should read this again…
http://www.sellaband.com/site/how-it-works.html
Comment #000028 at
2006-10-31 21:50
by
Rave
Yup. I’ve read it another time. Has anything changed? Is my synopsis significantly inaccurate?
It still says “The Artist hereby exclusively and irrevocably assigns to SellaBand subject to all terms and conditions herein and in accordance with the Terms and Conditions and the Title Agreement
all – whole or partly – unrestricted worldwide music copyright, and all other rights of a like nature, whether vested or contingent, and such other rights as may be conferred or created by
law or international arrangement or convention whether by way of new or additional rights not
now comprised in copyright or by way of extension or renewal of existing rights, of and in the
words and music of the Work(s)”
I would have thought that SellaBand simply required the artist to provide them with a license that met their requirements, i.e. did not transfer the artist’s copyright to SellaBand.
Why not let the artist keep their copyright eh?
Comment #000029 at
2006-11-01 07:53
by
Crosbie Fitch
Check out what I had to say about it:
www.theplugg.com/2006/11/01/sellaband-is-the-hype-real/
Comment #000030 at
2006-11-01 13:02
by
Thanks RustyCat. Very interesting.
You know what they say: “No reward without risk”. The question is, what risk is SellaBand taking?
For example, SellaBand could offer to pay each artist an advance for each new fan they obtained, e.g. for each fan that pays $10, we’ll advance you $1. You pay us this money back if you opt out, or you keep it if you sign (and importantly it isn’t deducted from the $50,000).
Now, that’s still very little risk, but it does sweeten the deal slightly.
The ‘familiar smell’ about SellaBand, is that rather than offer a better value proposition for artist and audience alike it’s simply the same one as usual, but a less risky one for the publisher – that’s just as lucrative (certainly saves on A&R).
Comment #000031 at
2006-11-01 13:44
by
Crosbie Fitch
Not quite sure about SellaBand (hat tip Nick Taylor and Springwise), but they certainly seem to have figured out that the fans are where the money ultimately comes from, and if the labels are now even abusing the fans as well as the musicians, that you might as well go back to first principles and try and help the musician make a deal with their fans directly.
A strange thing to focus on the fans collectively purchasing a recording session, but it’s a key phase I guess.
Usually, the people who stump up the funds get to share in the rewards. In this case they get a copy of the music on a limited edition CD and 50% of net profits from conventional sales of the CD. The other 50% goes to SellaBand. Artists get to purchase CDs at a fixed price – presumably to sell them at whatever they can get for them.
At first I thought this was perhaps another case of falling between two stools (audience procurement of copyleft vs traditional copyright publishing). Audience stumps up the advance, gets a free copy. Publisher gets the IP and all commercial exploitation. Artist gets popularity…
However, at least in this case the punter gets a cut:
However, there’s more than just CD sales to think of…
The artist gets 60% of the publishing income – with none to the fan.
Any website advertising revenue is split equally with artists and fans, e.g. 33% to SellaBand, 33% to 1,000 artists, and 33% to each artist’s 5,000 fans, but is only paid out if/when it amounts to more than $1 (and a 5,000th of 33% of a thousandth of total ad revenue implies some big money changing hands before a fan sees a single buck).
So, in this new enlightened deal:
Business as usual eh?