MUSICIANS FIND UNLIKELY SOURCE OF FUNDS

Festivals are the new frontier in music revenue. And unlikely backers are getting into the mix. Investors are looking for options to the traditional investment vehicles and are turning to the music industry to fund up and coming artists based on their future sales. For example, startup Sound Royalties gives musicians loans based on future earnings while letting the bands retain full ownership rights to their music.

Check out this article in the Wall Street Journal about more information.

LINK TO WSJ

THE FUTURE OF FESTIVALS

There's a tipping point effect happening as we speak in the music industry. And it's great to find my company at the forefront of shifting the power back to the musician.

It truly is an exciting time to be in the music industry. It feels as though, as a community, we're getting back to our Woodstock vibes and recognizing that music is, at it's core, an art.

The future of the music industry is, ironically, live music. Specifically, festivals and subsequent streaming of the festival content. It's big money. And the artists are demanding they have greater control over their creative content. Meanwhile, concert production companies are getting bought up by large conglomerate companies right and left. Next on the chopping block in our home town of Austin, Texas, C3 the parent company that produces massively successful hit festivals like SXSW and Lollapalooza is getting bought out by a little publicly traded company called Live Nation Entertainment, Inc. Now you tell me that Live Nation doesn't have an agenda to it's shareholders on revenue and I'll call you full of malarkey. The CEO's salary alone is $7.9M according to Yahoo Finance. Money isn't the enemy here - content control is. These concerts may all start to look alike - filled with the same acts, showcasing a carefully curated group of bands, hand selected by corporations to turn profits. Hopefully not, but it's definitely got me worried about the future of our industry. 

From a tech perspective, things are cranking. Here's a recent article from CNBC on the Future of Concerts: Social Wearables and Interactive Light Shows
CNBC added a graph of how people use their phones while at festival, but I think they left off one more piece: tipping the band!

BANDAIDE EARLY BEGINNINGS

In August 2014, the founders of BANDAIDE Mobile Tip Jar came up with the seed of a great idea: make an app for musicians to collect tips on their phones.

Many working musicians were consulted in the Austin and Southern California region to determine how would bands use it, what should it cost, what bells and whistles should be included, and did the music community think it would be a viable tool in a band's tool bag.

The overwhelming answer: YES!

Over the next six months, Harlem Media and the founders made mockups, flow charts and vision boards to hone the idea into a business plan. Landis White of the development company Blue Like Neon was hired to build the app and spruce up the graphics.

The goal: Produce a native mobile app that embodied a single intersection between fan and band. Anything that was not essential to the function of a fan tipping a band was left on the cutting room floor so to speak and tabled until further roll out.

 

AUSTIN MUSIC CENSUS

According to the Austin Music Census, musicians' incomes are under fire.
We hope that the BANDAIDE Mobile Tip Jar can drastically improve these numbers!
 

As part of the Austin Music Census, 2,380 musicians filled out a survey about the challenges facing the industry and how they earn a living. Among the findings:

68.4 percent said they made less than $10,000 in 2013 from the music industry.

24.4 percent said their total income, including other jobs, exceeded $50,000.

46.5 percent said live performances in Austin contributed little or nothing to their income.

76.5 percent said CD sales contributed little or nothing to their income; 83 percent said the same of digital sales.

87.3 percent said stagnating pay has an extreme or strong impact on their lives.

Source: Austin Music Census