Posts Tagged ‘money’

PRB Media are looking at the Blockchain and Cryptocurrency world and how this effects / benefits the entertainment industry.

Blockchain is ushering in disruption in various industries. Even big multinationals like IBM etc are working on their own blockchain projects, hoping to maximize the technology’s. Yet despite the upsurge in adoption and amid the rise and rise of Bitcoin, not all of blockchain’s applications are being used by established companies, there are exceptions, for example messaging platform Kik, Hamburg-based fintech NAGA Group AG with its ecosystem and virtual reality (VR) platform Ceek, who have turned towards token sales to accelerate their respective growth. This article looks at how the blockchain could transform the music / entertainment industry with Robert Elder.

Twenty years after peer-to-peer (P2P) file sharing decimated the music industry, blockchain is emerging as a new P2P technology that could rip into the industry.

But this time, the revolution promises to be different. Whereas digital and illegal downloading once wreaked havoc on the industry at large (from music creators to record labels, none were spared), a blockchain-based model for music pledges to boost the fortunes of artists. Industry middlemen and gatekeepers, however, could be in danger.

This is according to the vision proposed by SingularDTV, a company that is developing an entertainment app ecosystem on top of Ethereum — the blockchain computing platform for launching decentralized apps. Through its apps, SingularDTV hopes to enrich and empower artists, and rewrite the rules of the music and broader creative industry. Some of key steps its taking to accomplish this include:

Creating a token-based economy where value is derived from an artist’s work. Tokens are the native crypto-assets of a blockchain app. They are powered by smart contracts (code-based financial agreements) that are programmed into Ethereum. When an artist tokenizes, they’re turning their intellectual property (IP) into a financial asset, so an artist’s token reflects the value of their creative output. Those who buy into an artist’s tokens buy into owning a share of the artist’s creations and its revenue flows. The more people who consume the artist’s creation, the higher the value of the token.

Enabling artists and consumers to earn money from selling and buying tokens. Artists can raise money through a token launch, which is similar to an initial coin offering (ICO). Here, anyone can buy the tokens upfront. The majority of the windfall will go the artist, and the token launch platform-provider (such as SingularDTV) will retain a service fee. These tokens are programmed via smart contracts to dispense royalty flows: If someone pays a dollar for an artist’s content, then all of that artist’s token-holders will receive a pro rata share of that dollar, explains SingularDTV CEO Zach LeBeau. Tokens can also be exchanged for perks, like special access at a concert or early access to a new film release.

Eliminating middlemen and undermining the influence of industry gatekeepers. Tokenization lets artists raise funds upfront without relying on an advance from their record label. Meanwhile, distributing content via blockchain would allow artists to skirt streaming platforms like Spotify to earn royalties on their own terms. Of course, the success of this model hinges on attracting users, but there are reciprocal incentives in place — on both the artist- and consumer-side — for it to take off, and LeBeau believes this model could become mainstream in as little as two years.

One artist who has a passionate and large following is already onboard with SingularDTV’s vision. Gramatik, the New York-based hip-hop and electronic artist, is the first musician to sign on the company’s tokenization program, and he’s set to launch 100 million GRMTK tokens on November 9. “This is something artists have been dreaming about since the beginning of time, to be free of gatekeepers, and to communicate freely — and even be in a business relationship — directly with their fans,” Gramatik told BI Intelligence. It’s not hard to imagine his excitement spreading to legions of artists and fans in the near future too.

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Music Agents….

In the music world, booking agents are different from talent managers. Booking agents are the people that actually book shows for the artists they represent. They make all of the arrangements with the promoters of the shows. The booking agent presents the promoter or producer of the concert with a performance agreement, which stipulates the artist’s requirements. Items may include lighting, sound, meals, hotel accommodations, and transportation.

For concert buyers, they work to find the right artist that will fit in the need and available budget.Many of the major booking agencies refuse to represent clients who are not already signed to a major record label and have national distribution of their music. Because of this, artists on independent record company often seek representation with an independent booking agency.

Bars and nightclub that specialise in presenting live music on a regular basis often employ an individual to assemble the schedule of events. These people are the venue’s buyers, and should not be confused with the booking agent, who presents their roster of available acts to the buyer. Booking agents may also have contacts known as free-lance promoters. These are individuals that agree to produce a concert by locating a venue, providing a sound system and assembling a staff.

Producing a show in this manner, at a location that is rented out for a single evening, is called “four-walling,” as it entails renting a venue and receiving no additional services or technical equipment other than the space itself. This has often been the only available option for underground musicians lacking enough popular appeal to gain access to more conventional performance venues, but is also used among the genre of raves and various DJ-related events.

The cost factor of having a booking agent has to be weighed against what they can do for clients and buyers alike. Some agents represent several different types of artists, while others represent artists in one main area/genre.

For more information about ‘PRB Media’ and how the agency can help your event, show please send you bookings & information to: 

 

Email: info@prbmedia.co.uk

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One of the key area’s which is very important for a business is raising finance. The last few years have proved very difficult for individuals and business to raise the necessary funds to push the idea and business forward you have many area’s to raise funds, but in these times there is NO easy way to achieve this.
 
Writing a great business plan is essential to the development and structure, if you like a road map on where your business could be in a 3/5 year period, more on the business plan in the next few weeks. Below are a few hints and idea’s on how you can look to raise financial support and were your business idea could fit for funding…
 
 
The Early Stage Funding
 
 
‘Sweat equity’ & bootstrapping:
 
All start-up businesses begin with the owner’s time, effort and money. Bootstrapping involves growing the business organically through maximising the immediate available resources. Before and alongside seeking external financing, entrepreneurs should bootstrap as far as possible.
 
 
Friends, Family & Contacts:
 
Business start-ups often rely on early investment by friends, family and contacts.Whilst they can provide a vital source of cash, the opinions of friends, family and many contacts will often be based in your favour. They should not be relied upon to test your business case. Bank funding loan may be possible from your bank, and banks will often lend amounts that match external equity investment. Whilst bank funding is relatively inflexible when compared with equity investment, debt is naturally an important source of initial seed funding and for slightly later top-up funding.
 
 
Business Angel equity funding:
 
Business Angels are often only prepared to invest in an early stage venture once something about the venture has been proven or the initial risk has been perceptibly reduced. There are various elements that can be quickly and easily implemented to make a proposal more attractive to such investors. Business Angel equity investment can be the most useful source of investment in to an early stage venture, because Business Angels should be able to offer more than just money to make the business succeed.
 
 
Asset finance:
 
Asset finance comes in to play primarily for capital expenditure. This is an important cash flow solution to business owners in that they are effectively renting, as opposed to owning, assets required by the business. Factoring – the provision of up-front cash for invoices by banks and other debt lenders.
 
 
Corporate venturing (early stage):
 
Equity from and or debt funding from companies who have noticed your product and service can be useful to the early stage venture, but there can be substantial pitfalls when the venture is young. A larger company may wish to take you over if you pose a threat to their market share. The right relationship can be achieved through a well planned and negotiated shareholder agreement, but corporate venturing is best left until later when the venture is in a stronger position financially, when it has gained a position in the market and when it has achieved a more profitable price for its equity.
 
 
Venture Capital:
 
Venture Capital funds can have deep pockets, but they can also aim to obtain a high share of your equity and significant control of the running of your company. The solution involves the correct funding strategy and again, the right shareholder agreement.
 
 
 
Stock Market equity funding:
 
Many ventures start life with the plan of ‘floating on the stock market’, but in reality,most companies exit by way of a trade sale – selling to a larger company. It can be useful or necessary for a company to pursue the market entry route and it can be a lucrative source of investment; but it can be expensive to go through the process and the demands and obligations placed upon the company substantially increase. 
(Source: Business Angel Capital Ltd 2013)
 
 
 
 
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