the data makes all the difference

Reading this blog post by Jason Spitz at Topspin Media got us clicking back to the discussion about the project that the Future of Music Coalition is doing to study artist revenue streams and aggregate some of the data in new and useful ways.  Looking over the methodologies and structure of this study, it is clear that some very valuable work product is being generated here. 

Our artist clients are engaged in the constant search for new (and robust) revenue streams, and are working hard to live the dream of eating off of what their music generates financially.  To the vast majority of artists, it remains mostly that: a dream.  But it's a dream that is born out of passion and art, so somehow- for a while at least- it is pursued honestly and with hard work.  The same observations we have been making for years- the music business model is broken, no one knows what to do- are just boring observations now.  Statements of the obvious even?

So how do we move beyond stating the obvious and get in to working towards making music work for the people that make music?  One key way is to know how the money flows--and the FMC revenue project does that, but from the perspective of the artist rather than the balance sheet jumble of labels, publishers, etc.  It is likely to be a very helpful study.

And for the record, we were really happy to have helped out (in small, lawyerly ways) on some of the collaborations between Topspin and Air Traffic Control last year.  Forward thinking projects = fun.

Featured Venture: Dear New Orleans

In late August, 2005, nature dealt a striking blow against the city of New Orleans in the form of a storm called Hurricane Katrina.  Debate over whether the chaos that ensued was the result of a freak/unique natural disaster or the failure of systems designed to protect the population from just such occurrences still rages on.  No matter where people come out on that question, one thing is clear: one of America's urban jewels was--and in some ways, still is-- devastated by the storm.

New Orleans is a music town, and in the years since Katrina, musicians have rallied around their brothers and sisters, musician and non-musician alike, to help with the recovery.  Air Traffic Control Education Fund, a national non-profit, has collaborated with the Future of Music Coalition to facilitate directed assistance to the people of New Orleans by musicians in the years since Katrina.

Their efforts have culminated in this project, Dear New Orleans - A Benefit Album, that was released last week.  Learn more about what artists have been doing to help in New Orleans by checking it out.  And get a great record while you're at it.  The work isn't done, but after five years, it helps to slow down and enjoy the music that helps tie New Orleans to the rest of America and the world.

featured venture: concord free press

Here's another FEATURED VENTURE: the Concord Free Press.  We have to give credit to NPR for tipping us off to these folks on the commute this morning (their story is HERE), but it really is a project that has the potential to change the publishing game, and game changing is what the featured ventures are all about.

The basic concept of the Concord Free Press (visit them HERE) is that the books they publish are free (100% discount!).  They only ask that those who pick up their books from bookstores make a donation to a charity or person in need, record that donation, and pass the book along after the reader has read it.  The publisher's website is basically a long list of donations that readers have made that are associated with each of their four titles currently in print, and the list is impressive.

In a publishing environment where most books do not make money, this novel approach to doing good makes a lot of sense.  Authors want their work to get out there, and making that happen while creating a social return on the investment is a win-win.  It's not quite "Steal This Book," but it is an interesting and compelling model.

featured venture: fractured atlas

We're starting a new, semi-regular offering here: the FEATURED VENTURE.  This gives us an opportunity to highlight client and client-related projects, as well as ventures that we think are having an positive impact on the entertainment industry landscape.

The first Featured Venture is FRACTURED ATLAS.

Fractured Atlas is a 501(c)(3) non-profit operating out of New York City.  They provide services related to project financing and insurance for artists working in all media.  Specifically, they have a fiscal sponsorship program that allows artists to finance their projects by getting tax-deductible donations applied to budgets. 

This is a huge benefit to artists- especially filmmakers.  Our independent film production clients (almost) universally struggle with how to finance their films.  We spend a lot of time warning filmmakers about the perils of violating the securities laws in the course of raising production funds, and unfortunately, compliance can be really, really expensive.  To prepare a private placement memorandum and to issue securities that represent equity investments in a film project- and to do it right- is frequently cost-prohibitive.

It is also risky to ask for donations to fund film projects.  Asking for donations implies tax-deductibility, and the slope gets slippery in a hurry.  It is ok for people to give money to other people (up to the annual IRS limit for gifts), but the law gets involved when there is something promised in return (i.e., state and federal securities laws) or when the person who gives claims a tax deduction for the gift (i.e., state and federal tax laws).  Fractured Atlas' fiscal sponsorship program provides a way to navigate the morass without spending an out-sized chunk of the budget on compliance.

Fractured Atlas recently announced a cooperative arrangement with IndieGoGo that I think people should notice.  Read about it HERE and HERE.  There is a webinar about how the organizations are going to work together next Tuesday--check it out.

Let us know if you have any suggestions for projects that should be considered for the Featured Venture series.