Showing posts with label SellABand. Show all posts
Showing posts with label SellABand. Show all posts

February 25, 2010

SellABand changes hands... and business model

As I told you in the lastest blog post, SellABand went bankrupt.

Soon after, aquisition rumours started. Then, it was official. And a couple of minutes ago, the website was back online.

Business as usual, right? Wrong.

Users trying to log in SAB again are greeted with a notice of some new Terms of Service - which you agree or you have to cancel your account. The new Terms of Service have a funny clause, one that radically changes SAB business model. In 4.5, they state that a believer can't take back his money if it's on SAB for more than 15 days. OUCH!, this is more than a change, this is not acknowledging the real SAB problems, while failing because they take out the incentive to actually be a believer... What an huge #FAIL: this new SAB is, automatically, a lot worse than what it was.

When canceling (because I don't accept the new TOS) my accounts,  they said to me:

Dear Merankorii,

We would really like to hear the reason why you do not want to accept the new Terms and Conditions and stop participating on SellaBand.
Here's my reply:

The new 4.5 clause makes believers being forced to loose their money, even if the band they wanted to succeed abandons the project or otherwise doesn't reach its goal. With the new terms, believers stop having the ability to be "believers of some specific artist(s)", and are thus forced to be "believers on SAB". While that might work to some believers and bands, that radical change of concept doesn't work for me both as an artist and a believer. Thus, unless/until you change the TOS again, I want to withdraw my money on SAB and quit both my artist and believer accounts. I don't count on coming back to SAB as an artist until this 4.5 changes to something I feel more fair for me, as a band, to purpose to my fans, and I count to get back to being a believer *only*if* I find a band that I like so much that I'm willing to bet with my money in, taking into account that I might never see that money again -- which doesn't happen with any SAB artist at the moment.

February 23, 2010

SellABand goes bankrupt

I've written about SellABand in the past:

2006/09:

[...]SellABand, a German startup that tries to act like a record label for registered artists. I also intend to do a full review on this later, and to sign Merankorii there, but I have to confess that I don't believe it's business model will make this service survive. Anyway, the fact that startups like this are starting to appear just show that there's a need to do something into the new music market reality, and Web 2.0 might be a key tag on that future. I also think I'll talk more about that in my presentation on BarCamp Portugal.
2006/09:
When I talked about the actual music industry scenario with the technological advances we're seeing on BarCamp Portugal, I said that new stuff was needed, and that some webapps are walking towards the solutions needed (like Amie St. or SellABand) but we weren't there yet. Well, yesterday I knew about Treemo, the next step towards what we need.
[...]
While new features are surely going to appear, their model business will hardly change - but will, perheaps, evolve. Yet, and under the actual stance that, I don't see them as being a viable way for artists to earn money with their art, but it's a good step towards it.
2007/02:
SellABand - I promised a full review of it that I never did (shame on me). To give you an example... I have a musical project and I've used the internet to promote it - and even to get the label that released my last album. Of all those music services my music can be heard, SellABand is the one where I probably have less people listening to it - but in the other hand is the one that possibly granted me more fans. Also, Last.fm and SellABand were direct creators of revenue: I sold at least one CD thanks to each of them. What's SellABand? What makes it so different? No better than this page to explain it, but basicly bands, for free, create their profiles there, with (at their choice) free-to-listen music. "Believers" (the name for listeners) may "believe" in an artist by buying one "part" of the band ($10 per part). Then, "Together Believers have to raise $50,000 to get their Artist of choice in the studio. At any point before your Artist has reached the Goal of $50,000, you can withdraw your Parts and pick a different Artist. You can even get your money back. It's your music. It's your choice." If one band reaches $50,000 (in four months two already did), a CD is released, you get a copy, 50% of the profits go to the band, and the other 50% are distributed to their believers.
2007/05:
SellABand also keeps going on, and are, at least, a very successful case of an indie label - after all in less than an year they've managed to launch several bands albums and compilations, besides organizing events - for instance. Here listeners pay to give the bands a chance to release an album, and after they can make money out of it.
2007/09:
But the big question here remains: what's the really good way of doing this? How to create the "Record Label 2.0"? Every one of the three concepts for music have problems (SellABand, Launch A Label and the $100 label), and while ideas can and should be taken from stuff like Open Source or examples like Swarm of Angels, there's still no idea of how to create the "killer record label", that which is fair to everyone (from the artist to the public). I wrote my ideas of how to create the perfect record label [6] in the past, even if it was just a collection of loose thoughts in a way that seemed to make sense. There's no answer yet, but it's definitively something interesting enough to make me think.
In 2007/10 I actually interviewed SellABand. All of it is relevant, but let me highlight this part - more interesting when we think about it's state of bankrupcy:
When it comes to SellaBand I am very confident that it is a sustainable business model. The relationship of the artist with his or her fans is a unique one that is very difficult to break. Imagine seeing 50,000 dollars roll in on your account. Imagine realizing your dream because thousands of music fans believe in you. Imagine seeing an artist you supported on MTV. All of this magic is happening and will happen a lot more for a very long time.
In 2008/07 I interviewed Equal Dreams, a SAB competitor. This is what they had to said regarding SAB:
Compared to the other services Equal Share provides the artists with more flexibility in defining what he or she is actually selling to the audience and for what price; first of all, there are no pre-set target goals, but the artists can define their own funding needs; after all the quality of the produced music does not necessarily correlate with the amount of money spend in the project. Nowadays this is true more than ever as the prices of digital recording equipment have come down so drastically. Artist could also use Equal Share together with a record label/producer to gather a partial funding for the production. Secondly, the co-funding, which works with a pre-order concept, can be flexibly assigned to even just one song, and the pre-order price can be set as low as 0.50 EUR. We think this is more attractive from the customer’s point of view than being prescribed to invest tens of euros. Fans can be updated about the progress of the production project using the internal messaging system in the Service.
In 2008/11, I wrote:
They're changing for better, but they're still too far from where they should. Let's see how this goes...
In 2009/06, I questioned some bands decisions regarding their editions, based on SAB figures, and questions that should also apply to SAB themselves.

...

Today SellABand's website gives us this message:
On Friday February 19th, SellaBand AG requested provisional suspension of payments (moratorium). This was granted by the Court in Amsterdam on the same day. Yesterday, Monday February 22nd, this moratorium was changed into bankruptcy, with appointment of, Mr Paul Schaink, an amsterdam lawyer, as trustee. The trustee wishes to inform the 'Sellaband community' that, apart from a few technicalities, the completion of a transaction with a potential buyer of the business, is to be expected soon, in order to make a fresh start, safeguarding both the rights of Believers and Artists. More news will follow shortly.
I don't know what "shortly" is, but I'm sure I want to know about it. In the meanwhile...
There's one thing I know for sure - this bankrupcy is not SAB's business model fault, it is their management fault - just ask anyone from its community.

March 11, 2008

Crowdsourcing

Crowdsourcing

The Vienna University of Economics and Business administration is making a study on Crowdsourcing (see my first post on the issue here). The study, to which I contributed, still isn't available, but you can read a summary of the research in this PDF. Eight crowdsourcing communities were analyzed, including SellABand (my thoughts on SellABand here). This summary doesn't give much juice about the matter, specially if you're into the concept of Crowdsouring, but yet it seems a good resource, specially for those thinking about being in the crowdsourcing market. Most of all, the summary promises that the research, when available, is a must read.

October 22, 2007

Interviewing... SellABand

SellABand logo I talked about [1] SellABand [2] in the past, but I never covered it as I wanted to on this blog. So, I decided to interview Pim Betist from SellABand and leave you with the result...

For those who do not know, SellABand is a one-year-old web music service that can be considered a "Record Label 2.0". Read the begining of the interview to know more about it. Oh, and they are looking to Ruby coders so if you might be interested you should read this until the end!


Hi there, and thanks for letting me interview you... SellABand is already one year old, but lot's of out readers probably don't know about you, so what about starting by explaining what is SellABand?

SellABand is an online music platform where artist and fans can make music and money together. Artists make a profile for free by loading up their best three songs, their bio and some pictures. Music fans view the profile and listen to the music. When they believe in the artist they can become a "Believer" by buying parts. Each part costs $10. Once 5000 parts have been sold we have $50,000. We use this full budget to record an album with renowned producers in top studios. Once the album is done all believers receive a limited version of the album. All income generated from the album and the advertising on SellABand is divided equally between the artist, the believers and SellABand.

How did the idea of creating SellABand appear?

SellaBand comes from a love for music and a frustration about the fact that the same artists are being heard over and over on the radio. I would see a lot of live performances and notice how much talented artists are being unnoticed by the traditional music industry. I decided to give up my job and approach the right people to execute the business plan. I found Johan Vosmeijer and Dagmar Heijmans. Both experienced in the music industry. When they heard about my plans they gave up their jobs to launch this business and follow our dream: Bands and Fans in business together!

What do you think of the actual state of the music industry? What do you think SellABand can do to help it moving to the right direction?

The majors have been treating the web as a threat as opposed to capturing its opportunities. When Napster was founded the labels had a choice; embrace this development and create new business models or sue the new initiatives. I don't have to tell you for which one they choose. This approach cost them a lot of money. Music companies were focusing on numbers and laws in stead of on finding new talent. Additionally, the traditional business model is completely outdated and far too risky. Each new artist that is signed by a label requires a large investment before any money is made. Sales have been dropping with around 25% world wide. With less money being made, logically labels are betting on "safe horses" like Madonna and Justin Timberlake of whom we have heard so much already. RIAA (Record Industry Association America) figures have pointed out that music listeners are interested in new music. They are fed up with highly marketed super stars. My guess is that with this risk averse policy music sales will be dropping more in the future. Since labels aren't picking up new talent, there is a lot of unsigned artists out there. SellaBand makes it possible for music fans to discover these artists and help them make take their career to the next level. We like to see SellaBand as a trampoline. Artists choose themselves
how high they want to jump. After (and before) recording their album with us they are free to sign with a label. We have recently signed distribution deals with Rough trade in the Benelux and Proper in the UK so all SellaBand
albums will be sold in stores across the UK and the Benelux. Additionally sellaband artists are being invited for live performances all over the world. Nemesea for example (the first band 50K) has recently confirmed a tour in the UK. This way the more passive music lover can also enjoy the amazing new music that is being discovered on SellaBand.

How do you measure the SAB success so far?

5400 bands signed up. 1.3 million dollars has been invested. 9 artists have reached the 50K. 3 albums have been released. We have only been live for a little over a year. We (the management and the community) are very proud of these results.

We're seeing a lot more of this "Web 2.0" world that is more and more centered in user generated content and grabbing users' attention. SAB completely relies on User Generated Content and even "user contributed money". Aren't you afraid this is a bubble soon to burst?

I agree with you that are a lot of initiatives out there. In some of them I have a lot of trust. Fabchannel.com is a good example of web 2.0 initiative that I think will continue to grow in size and popularity. Other initiatives
I just don't get. 2nd life for example is an initiative that I have less faith in. Time will tell which initiatives will continue to prosper in the future. When it comes to SellaBand I am very confident that it is a
sustainable business model. The relationship of the artist with his or her fans is a unique one that is very difficult to break. Imagine seeing 50,000 dollars roll in on your account. Imagine realizing your dream because
thousands of music fans believe in you. Imagine seeing an artist you supported on MTV. All of this magic is happening and will happen a lot more for a very long time.

As an user of SAB almost since day one, first as an artist and then as a believer, I've been seeing the development of a very strong community, and lot's of things running around SAB. For instance, before SAB having an official forum, we already had forums for SAB... How did you made it happen? How do you see that?

When we started sellaband we had no idea that we would be surrounded by such an amazing group of music lovers. All "community initiatives" were literally initiated by the community. All we did was listen and try to serve the community in the best way possible. When it comes to offline initiatives I think we've done a great job. This summer we sold out legendary live venue paradiso in Amsterdam. Believers from over 22 countries flew in to Amsterdam to see the show. When it comes to online initiatives I think we can make a lot of improvements. One of our Believers "Rey Gamba" is an experienced programmer. He has been envolved behind the scenes for a while now. First he created club SellaBand which was a sandbox environment where we tested what extra features we could add to the site to make it more fun and sticky. We loved what he did so much that we asked him to join our team, which he did! We are very happy with the added value Rey Gamba will bring to our company.

With all the interaction you have with the SAB community, both artist and believers tend to flood you with new ideas. How do you face them? It seems to me that there's a kind of "sense" from the community that you're somewhat obliged to at least consider those suggestions...

I fully agree with you. We are a very transparent company and therefore get a lot of feedback from the community. We have used this input when we made our business plan for 2008. We published the complete plan in the tribune, our weekly news section. We are very conscious of the fact that it is the community of artists and believers who will take this company to the next level. Keeping that in mind we have to protect "the pillars" of our concept and realize that we cannot please everyone at all times.

We never heard again of "SellABand Presents..." CD's... Was it something you did to start launching 50K artists, or is it something we'll seen again?

SellaBand Part 1 and 2 were both a major success. I think the time is right for a part 3 soon.

Since this is a blog that usually talks not only about music but also about technological issues, can you give us some tech details about SAB?

We have chosen for the language Ruby. We are looking for programmers who can program in Ruby because we are building our own team.

Any final words you want to leave to our readers?

We've been nominated for the nima marketing award. This is Hollands most prestigious marketing prize. Tom Tom and Gsus won the year before us. Don't forget to vote for us here! http://www.nima.nl/marketing_jaarprijs


[1] - http://mindboosternoori.blogspot.com/2007/02/social-web-of-music.html
[2] - http://sellaband.com

April 30, 2007

SellABand messes up with Flash... again

Since yesterday, when visiting an artist profile on SellABand, I get this message:
SellABand screenshot
The problem is that:
  • this didn't happen before
  • According to Adobe the latest Flash version is 9,0,31,0 and that's the one I have installed
  • Any other "Flash 9 only" website I go has no problems with my plugin

What's going on? Anyone having this problem besides me? My guess is that this is has something to do with me being using Linux's version of the plugin...

March 20, 2007

Stuff I've been doing lately


Well... Since I didn't post for a while, here's a quickie:

Friday I met two nice restaurants and two good wines. With the company, it was joyful. Arrived late at home, so Saturday I only took the train to Coimbra after dinner. On the train I almost prepared the presentation about the Music Industry and DRM for next saturday in Moita - Portugal. I have to cut it off a lot since I have only one hour (Q/A included) and almost 60 slides.

One thing that bothers me a lot is that stupid thing so many people started to innocently claim after Steve Jobs saying it, and one example (the latest I read) can be seen here: the claim that (physical) CD's aren't infected with DRM. Unfortunately, that's untrue.

Yesterday I finally tried to use my cellphone as a modem, via bluetooth. I wasn't really into it since everyone claimed it was a pain in the ass. Well... It wasn't. I just did

sudo /etc/init.d/bluetooth start
sudo modemlink

chose, "bluetooth", and activated bluetooth on my cellphone (Motorola E1, for the record). It found the cellphone, and asked if that's what I wanted as my modem. Clicked yes. After that

sudo gprsconnect

It asked what my cellphone operator was, but it is none of those listed. So, I chose "other", clicked "connect"... Et voilá! It couldn't be easier.

One bad thing in the talkers world is that all the talker bases there are aren't being developed anymore. Sometimes some vapourware appears, but the smoke soon dissolves. The exception for that is Mamnuts and PyTalker, unfortunately both maintained by me. Which also means that if I stop working on that... Well, not anymore. A new effort as arised, and I hope it won't be vapourware. Tints purposes a talker standard and a protocol. Around the protocol itself an implementation of it in C will appear, and python bindings for it. Then, a server, a talker (notice the separation, compare with a webserver and a website) and a client. The first client is not going to be a telnet interface, but you can virtually create any kind of client, from an interface to telnet, telnet-ssl, an webite, a XMPP plugin, an interface to Second Life... Well, you name it. The concept is really good, and if it doesn't die, I'm almost surely to be an early adopter.

Finaly... SellABand appears to be down. Anyone knows something about it? Update: Finaly, it replies. 500 Internal Server Error. Update 2: Hmm, seems that it just suffered an update.

February 06, 2007

The Social Web of Music

For those who read this blog for a while now, you've probably noticed that I write a lot about music and technology, sometimes both. A pair of posts I did on the issue may be already somewhat outdated: one about finding music on the web, and other about the web for music artists and lovers.

While there's some discussion around the web on wether Web 2.0 is better or worse than P2P for this kind of stuff, an issue I would love to talk about in a future post, today I'm going to talk about "The Social Web of Music", impelled by the fact that Techcrunch made a Social Music Review that, IMHO, doesn't really reflect the great web apps out there in the field.

They chose eight products: FineTune, Pandora, Last.fm, Mog, Radio.Blog.Club, MyStrands, iLike and iJigg.

My first comment about the chosen applications is that FineTune, Pandora, Last.fm, Mog, and Radio.Blog.Club aim exactly for the same, so they're concurrents themselves.

FineTune lets you create playlists of music you want to hear, which is great if you want to be listening to some music instead of knowing new music.

On the other hand Pandora (here are some posts where I talked about it) has the easiest user interface of all, and has the best algorithm of finding out music that you'll probably like. On the other hand, it has two major problems: it almost only has mainstream music (almost everything comes out from the major labels) and it's only legal to use it in USA (so, no Pandora for us European guys).

My favourite of the bunch is Last.fm (my cover here): while it wasn't until some time ago, the social features it has are preety good. I'm intending to do a full cover of Last.fm and the way I use it, but for now I'll only say that it has an impressive social component that lets you (only if you want, and that's good) tag, rate, talk, know new stuff, get free tracks, and a lot lot more. It has something that beats those others: it lets bands or labels to create their pages there and promote their music. That makes it preety cool for bands and for those wanting to listen music, mainstream or not. The social component there is strong enough to make a band, by publicising themselves there (upload a music free for stream or even download, and it will surely be heard) to get fans or even sell your music in a much success rate than any other webapp I know of.

Mog also lets artists upload their music, but... well, it quite sucks. It's confusing, it has bad design, and the real use for which I can imaging Mog being the app you're looking for is only if you want to blog about music. And, for that, Last.fm would also be fine...

Radio.Blog.Club was a big surprise: I can't imagine it being relevant in a discussion about the "social web of music". I guess that the only reason why it was referred is that the author thinks that "the interface is good". Sorry, but I do not agree. Call me stupid, but while the website says that artists can upload their music, and while, by the file names, users are obviously submitting (copyrighted stuff, BTW), I walked around for 10 minutes or so and didn't find out how to do it. I don't intend to come back there.

MyStrands might be "social music", but isn't web: it's a desktop application you have to download, and there are only versions for Windows or Mac OS. Since I'm a Linux user, this isn't for me.

iLike is even worse: it's an iTunes plugin. No, I don't use iTunes.

Finaly, iJigg: the music digg. I don't really like digg, so I might be biased on this, but iJigg is just... well, if you want to discover music and you want "anything" (forget finding stuff similar of what you already know and like), or if you want copyrighted stuff that others post there (lot's of it, there), then you might find it interesting. But I doubt that it will be "the music web app you'll get used to use".

So, if these are my oppinions about the choices, what would be mine?

For me, only five stand out:

Pandora - I've talked about it up there, so go back and read it :-) If you're resident in USA and what you want is to get at your job in the morning, open a browser tab and make it play music you like until it's time to go home, this is for you. Easy, fast learning, great interface, preety cool. If you like something enough, you can buy the track or album in iTunes (please, don't - those tracks have DRM) or Amazon.

Last.fm - The music experience and interaction. Put your music player to feed Last,fm, use it to listen what other people recommend you, bands similar to the one you're listening now, other bands from the same music label, leave a comment, take a peek on what other Last.fm users that listen to it like to hear, know new bands, get some free, legal, DRM-free music.

SellABand - I promised a full review of it that I never did (shame on me). To give you an example... I have a musical project and I've used the internet to promote it - and even to get the label that released my last album. Of all those music services my music can be heard, SellABand is the one where I probably have less people listening to it - but in the other hand is the one that possibly granted me more fans. Also, Last.fm and SellABand were direct creators of revenue: I sold at least one CD thanks to each of them. What's SellABand? What makes it so different? No better than this page to explain it, but basicly bands, for free, create their profiles there, with (at their choice) free-to-listen music. "Believers" (the name for listeners) may "believe" in an artist by buying one "part" of the band ($10 per part). Then, "Together Believers have to raise $50,000 to get their Artist of choice in the studio. At any point before your Artist has reached the Goal of $50,000, you can withdraw your Parts and pick a different Artist. You can even get your money back. It's your music. It's your choice." If one band reaches $50,000 (in four months two already did), a CD is released, you get a copy, 50% of the profits go to the band, and the other 50% are distributed to their believers.

Amie.st - I talked about this before, and Mike from Techcrunch is a big fan of this, so my surprise was huge when I noticed that this wasn't on their list. Basicly they consider that every track has a value, but music lovers are the ones who should decide whats its value. So, When a band uploads one music there, it starts costing "0 credits", and if people say that the song should cost more than that, it starts costing something, and more, and more. It's the free market aplied to music - a way better way of knowing and buying digital music - you're basicly paying it's "real value".

MySpace Music - This had to be here. I don't like MySpace (nobody does, right?) but it's the biggest website on the Internet, and that means something. If you ignore all the kiddy social crap and take a look to in only taking into consideration the music aspects, you'll see that this is the most used "music webapp". You have from really big and well-known bands like Björk there, and you have that until the "I don't have or want a band, but I once did this track" stuff. You have music for every kind of tastes, some you can only stream and some you can download. You can see, specialy from the "top friends", what other somewhat simmilar bands you'll possible like, and discover lots of music.

And you? What music web applications do you use?