The current financial problems of crowdfunding service PledgeMusic are opportunities for other companies. Sound Royalties, for example, has announced that it’s making $3m available as royalty advances for artists affected by PledgeMusic’s payment delays.
The music-finance firm says it will offer the advances at an interest rate of 4% for one year for any qualifying artists. “Numerous hard-working bands and artists have not seen the money promised to them, and they may never see it. As advocates for musician rights, we could not sit idly by; we needed to help these creatives,” said CEO Alex Heiche.
Naturally, Sound Royalties is stressing the altruism of this act, although it’s also a timely bid to put the company on the radar of artists at a time when they may be fretting about how to fund the rewards they had promised fans who’d backed their PledgeMusic campaigns. The latter company has said it is working on a deal that will enable it to fulfil all its commitments to artists, but we’re awaiting further news on that progress.