The Case for Fan Investors
The landscape has changed radically in the music business over the past several years in part, due to the maturation of streaming services and general reach of social media marketing activity. Independent music labels now represent north of 40% of global market-share with any given release by an independent label having the chance to be the most-consumed album of the year. In concert with this rapidly evolving marketplace, the advent of Regulation A funding has afforded the "everyman" the ability to invest in businesses and opportunities they have a passion for. Some successful examples of Reg-A funded initiatives reflective of this dynamic include companies such as Legion M in the film-space, and Brew Dog in the craft-beer space. Both companies offer the opportunity for financial reward to investors, while also welcoming them into their relatively exclusive "clubs" via assorted perks/rewards and access woven into their respective offerings.
SongVest Records represents such an offering for the music fan. Music consumption is at an all-time high with any given artist/song having the ability to achieve literally billions of streams and formats such as vinyl records experiencing a major resurgence despite carrying a high price-point, while simultaneously gaining a collectability value. As one example of the general opportunity in the music-space, it was announced in January that Tencent has purchased a 10% stake in the Universal Music Group for $3.4b (with an option to purchase up to 20%). Bringing music to market and getting it exposed to fans has never occurred in a more democratic environment as the current marketplace is focused on the fan, as opposed to the gatekeepers to reach such fans.
SongVest Records is a paradigm shift in how fans activate their passion for music. Instead of just investing in a company passively and hoping for some type of end game exit, we are allowing the fan/investor the opportunity to actively engage with helping discover talent and promoting the releases from the label, and most importantly share in the financial rewards. We believe the game changer is paying investors a royalty off of top-line revenue, which aligns everyone in the same direction to help promote our artist’s works. This is not just a breakthrough for music but for all investors to start seeing an immediate return on their investment. In addition to the financial reward potential, investors in SongVest Records have access to tiered perks and various levels of engagement with artists and events which super-serves their passion for music.
For the artist, SongVest Records represents an extremely unique and powerful business model that includes the company handling traditional marketing services as with any given independent or major label, with the added benefit of being able to harness our fan/investor community who will be inherently incentivized to market and promote the signed artists on the label across their respective networks. This opportunity allows the fan/investor to play an active role in a record company, thereby harnessing their fandom in a unique way. We believe this is an extremely forward-leaning concept that has the potential to redefine the business models of record companies and artists alike for the future.