Kurb 50 / 50 artist recording deal ready to go global in 2009?

by Matt @ Kurb on June 16, 2008

 

 

Just been innovating again and on the basis of my online community idea which I will be developing to create paid access to music and content provided by kurb affiliated artists.

 

In the past I only offered this in Auckland as I wanted to control the retail of physical products.

The premise for a global 50/50 deal would be a non exclusive contribution of content to our paid music community.

 

But the deal would be a business partnership where an artist would split the value of their music as created on the site as equity in the business. That is, the artist as a shareholder in the business would receive a proportion of the PROFITS (not the revenue) generated by the site. But to receive the true value of the equity created by their 50% share in their content on the site, the artist would have to “cash out” of the business.

The value of the artists equity determined by their share of 50% of the revenue would be based on the value given to the amount of views, plays and downloads attributed to the artist.

 

So the drawback would be that as more popular artists join the site, and smaller artist proportion of traffic declines relatively, their equity would be worth less, and if their share of the profits were less than the proportional devaluation of their equity, it might be wise for an artist to consider cashing out and then . . .

 

Starting their own community of course! But why can’t an artist have their own paid memebership music community as well as participating by contributing content to kurb’s paid memebership music community? And other non exclusive paid content networks? Why would the consumer feel they had to chose when each proposition had exclusive merits?

 

You might get diehard fans who would subscribe to more paid membership communities.

 

That’s syndication, a would suggest that the future of the boutique record label is providing a service such as this based on being a trusted source of a particular and providing unrivalled depth of quality content for that audience.

For those who always wanted to create a label, this could be a new model that works.

{ 2 comments… read them below or add one }

Holli Vals 06.16.08 at 12:18 pm

These are some very interesting ideas you have here Mr. Kurb.
But all this business talk sounds like greek to me. Maybe it´s time to redefine legal and economical language to meet all those creative minds hitchhiking on the digital highway.

Gavroche 06.17.08 at 4:17 am

I like the idea. It’s all about harnessing the collective power of lesser known artists (long tail of music!) so that they can collectively compete with the bigger artists.

MixMatchMusic.com is going to be doing this, starting in september.

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