The latest startup aiming to help artists sell portions of their streaming royalties to fans is Labelcoin.
The US-based company is launching at SXSW this month, and unveiled its Android and iOS apps yesterday with a pitch is that it’s “the Robinhood of music”.
That’s a tagline we’ve seen before, in last September’s launch of fellow fan-investment app BaseNote, so they may have to fight over who most deserves the comparison!
Labelcoin says that it has already signed up more than 250 artists who’ve collectively generated more than 2.2bn streams, including Megan Davies, Jonah Baker and Kirsten Collins.
Fans will be able to buy shares in songs (‘Notes’ as they’re called here) and earn a slice of their streaming payouts, with a secondary market built in to sell their shares on – with the artists getting a cut of those sales too.
Artists can sell up to 50% of the royalties in individual songs, with Labelcoin charging a 3% transaction and listing fee.
Music Ally’s next Learn Live webinar will help you understand what’s required for artists to thrive in new international markets!