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Pay Musicians per stream

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Blue Horizon Advisory

In partnership with www.cryptalnews.com

Investment Opportunities

June 2018

“Pay Musicians per stream”

We vote NO!

  

Content

  1. Summary. 2
  2. Owner. 3

2.1.    Owner presentation. 3

2.2.    Owner history and track record. 3

  1. Investment opportunity summary. 3

3.1.    Concept 3

3.2.    Goals. 3

  1. Funding scheme. 4

4.1.    Requested funds. 4

4.2.    Funding schedule. 4

  1. Vote statistics. 5
  2. Benchmark and direct competitors. 5
  3. Recommendation. 6

1. Summary

Owner: Feedbands
Sector: Online music streaming
Proposal: Pay musicians per stream
   
Recommendation: Negative

2. Owner

2.1.  Owner presentation

Name: “Feedbands”
Logo:
Inception: 2013
Presentation:
  • Feedbands is a crowdsourced record label whose members collectively determine which artists they should make vinyl release offers to.

 

  • When they release an artist on vinyl, the artist gets paid and they keep all the rights to their music. Feedbands press the records and send them to their members all over the world.

 

  •  Feedbands only ever release first pressings, meaning the records released on vinyl have never been on vinyl before.
Key figures:
  • Artist community to date: 100+
  • Artist community growth YoY: n/a
  • Released vinyl to date: n/a
Link: https://feedbands.com/

2.2. Owner history and track record

n/a

 

3. Investment opportunity summary

3.1. Concept

Between June 4th and the 6th Feedbands tested a feature where artists were paid 10 cents in Dash every time their songs were streamed.

This test yielded a 20.000+ payments to artists, in real time, as their songs are streamed.

3.2. Goals

  • Even and scalable Dash distribution
  • Create a passive distribution channel
  • Create a new user base for Dash, people earning small amounts on a regular basis, making these amounts spendable.
  • Promote artists via a generous remuneration scheme, thus acting as PR for Dash
  • Promote the use of Dash

The funding request aims to:

  • Ensure sufficient funds to keep the channel on-going for 1 month
  • Develop new features that were requested by the users (daily / weekly payment batching, facial recognition/identity verification checks for new artist signups)

4. Funding scheme

4.1. Requested funds

95 Dash: To be distributed directly to artists
30 Dash: Development budget
5 Dash: Proposal reimbursement
Total: 130 Dash

4.2. Funding schedule

Payment type: One-time payment
Start date: 18th June 2018
End date: 18th July 2018
Final voting: 30th June 2018

5. Vote statistics

Completed payments: None
Necessary votes to be funded: 538 yes votes
Votes breakdown: *As of June 15th, 2018

 

6.      Benchmark and direct competitors

Streaming services Remuneration per play
Feedbands 0,39700 USD **
Groove Music 0.02730 USD
Napster 0.01683 USD
TIDAL 0.01100 USD
Apple Music 0.00640 USD
Amazon Prime Music & Amazon Music unlimited 0.00740 USD
Deezer 0.00560 USD
Google Play 0.00611 USD
Spotify 0.00397 USD
Pandora 0.00134 USD
YouTube 0.00074 USD

*Source: www.digitalmusicnews.com

**Estimated figure, Feedbands say that they pay 100x more than Spotify

7.      Recommendation

Upside Downside
  • Good PR for Dash

 

  • Dash will be earned by artists, thus creating a new user base that should spend the earned Dash

 

  • Established market with major actors with solid financial means

 

  • Extremely expensive remuneration scheme compared to the benchmark

 

  • Funding campaign aiming to finance operational expenses essentially, not development or growth

 

  • Feedbands uses both USD (for subscriptions, merchandise, and vinyl) and Dash, thus considerably limiting the Dash cash flow generation potential for the Dash Community

 

Based on the budget allocation scheme and remuneration strategy, we think that this funding request will only buy the owner some time (1 month of artist remuneration), and has a very limited upside for the Dash Community (given its usage of both USD and Dash). We, therefore, see no interesting potential in this investment opportunity.

 

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Disclaimer:

All rights attached to this document are exclusively reserved to Blue Horizon Advisory. This document can in no case be copied, photocopied, or partially or completely duplicated without prior written permission from Blue Horizon Advisory. This document can only be distributed by Blue Horizon Advisory. This document is intended solely for the use of the addressees. It should not be transmitted to any person other than the original addressees without the prior written consent of Blue Horizon Advisory. If you receive this document in error, please delete or destroy it and notify the sender immediately.

This document is communicated for information purposes only and It should not be construed as an offer or solicitation with respect to the investment or disinvestment. This document is based on carefully selected public information. However, no representation, warranty or undertaking, express or implied, is made to the recipients of this document as to or in relation to the accuracy or completeness or otherwise of this document or as to the reasonableness of any assumption contained in this document. In addition, any view, opinion or other information provided herein is indicative.

 

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