Apr
8th
Tue
8th
Is new media really going to be better than old media?
Lots of buzz about SellaBand raising $5M today. It’s a really interesting model. They have 18 groups that have been funded to the $50,000 level. That’s $900,000 raised $10 at a time from people over the web. Pretty impressive!
But have you read through the terms and conditions?
My favorite part:
“5.5 All rights in the titles on the CD, including intellectual and commercial property rights as well as master and copying rights and comparable rights are SellaBand’s rights exclusively.”
The band gets $50,000 to record an album (do they get what’s left over after recording expenses?) and gives away 5000 CD’s to do it. Then they get 60% of the net profit (after deducting expenses charged by sellaband) of sales after that.
Is this really that much better than the old media gig?
