There has been a lot of talk about what kind of costs and complexities may be involved for established music streaming services to switch to user-centric payouts, where the royalties from each subscriber’s monthly payment go only to the music they listen to. Could brand new streaming services find it easier to get the model up and running? Irish startup Minm wants to try.
Focused on independent artists, it charges €5 a month for a subscription, promising that 90% of those revenues are “split fairly between the artists you’ve listened to each month”.
Minm is already picking up buzz in the Irish media, although it will face two key challenges. First, whether a catalogue of independent music will attract enough subscribers to build a healthy business (and if not, whether labels will support its model if it looks for licensing deals). Second, whether keeping 10% of those €5 subscriptions will provide enough margin to invest enough in R&D, marketing and staff if the business grows.
But it’s good to see startups adopting user-centric payouts from the get-go, so we’ll follow Minm’s progress with interest.