In the coming weeks, and possibly months, as previously relied on concert revenues fall as a result of the ongoing venue closures and event cancellations, artists will need to do all they can to boost their income.
Alternative revenue streams that artists might be able to try capitalise on include obvious ones like merch sales, crowdfunding, and even live streaming virtual concerts – but could fan investments be an additional solution?
We’ve previously written about Sweden-based artist funding platform Corite, which allows fans to invest in music, enjoying a subsequent monetary reward via a percentage of royalties from the likes of Spotify and Apple Music.
Speaking to Rolling Stone last year, Corite co-founder and CEO Mattias Tengblad forecast a “radical change” in how music is funded, due to the work that it and other companies such as the UK’s Songbook and Austrian startup Global Rockstar are doing in the space.
Today, in some much needed positive music business news, Global Rockstar announced that it just secured new investment of €1.5 million (approximately $1.7m) from Swiss Estus AG.
The company plans to accelerate its growth in Europe and expand its team in Vienna “with a focus on IT and product optimization”.
Global Rockstar enables fans to become “shareholders” of new hit songs. In return, these fans benefit from revenues from streams and radio plays for the next 70 years.
According to Global Rockstar, its priorities for the coming months are “process efficiency, user experience, artist acquisition and expansion of the network of hit producers”.
In addition, the most important goal of this year, according to the release announcing the news, is to turn the songs co-produced on globalrockstar.com into global hits, which it says it can achieve “through a significant strengthening of production and marketing”.
“With Global Rockstar, I strive to create the digital music label of the future, to revolutionize the traditional music industry for the benefit of the creative and at the same time enable fans for the first time to become a real part of their favorite song.”
Christof Straub, Global Rockstar (pictured)
Global Rockstar founder Christof Straub said: “After almost 30 years of experience in the music business, it is particularly important to me that musicians receive financial support and fair contracts without limitations to their freedom.
“With Global Rockstar, I strive to create the digital music label of the future, to revolutionize the traditional music industry for the benefit of the creative and at the same time enable fans for the first time to become a real part of their favorite song.
“With the investment of our new shareholder Estus AG we can develop Global Rockstar into a true global player.”Music Business Worldwide