BY AMEYA UPADHYAY

Equity based model for supporting the music

industry

The Idea

To create a platform where musicians and listeners can interact and go into business together without intermediaries.

To level the playing field in the global music business – so that the commercial success of musicians is not dependent upon financing through “record deals”……which are often discriminatory and distortionist.

Execution

An evangelist ( individual , corporations) creates a platform (mainly the internet ) holds a repository of aspiring musicians along with their creative outputs – mainly a new album the artists’ desire to release commercially.

Music lovers or believers are encouraged to sample the music and “invest” or contribute to the artist they believe will make it big in return for a claim to their revenues if and when their music is sold commercially.

Execution

Once the money is invested the believers and musicians become business partners and can accelerate promotions in tandem ( facebook, word of mouth etc. ). The corporation hosting the platform also augments the promotion by offering incentives to believers contributing a certain minimum investment.

Once a predecided critical investment is reached the artists have a commitment with the believers and the hosting corporation to record their music for commercial marketing

Execution

Musicians have COMPLETE ownership and right for their music right form the start of recording the music . The corporation provides the support needed.

Once the music is released the revenue is split in three parts between the artists, believers and host.

Sell A Band

Already working model - sell a band in the US.

Success story 29 artists have raised $50 000 18 albums have already released On tour in the US with top artists before album

release.

http://www.sellaband.com/

Replication in India

Prospective bands with sales of over 30000 CDs in the past. Parikrama Moksha Motherjane Pentagram

The demand side potential exists.

Replication in India

Critical mass investment 5,00,000Individual Investement 1000percentage of revenue to flow to the individual 0.20%

No additional costs from the beliver side

Replication in India

Demand Projections

Assuming a total of 25000 CDs over five years in tapering steps price 75margin 20%Calculating the IRR

years 1 2 3 4 5No. of CDs 15000 12500 10000 7500 5000total revenue 1125000 937500 750000 562500 375000net revenue 225000 187500 150000 112500 75000

revenue flow to individual 450 375 300 225 150

cash flows -1000 450 375 300 225 150

IRR 19%