Markets Making Music - Sellaband and Angie Arsenault
From Events and Media Relations @ Rotman:
"Synopsis: In 1999, an unknown Northeastern University student named Shawn Fanning released – with little fanfare – a program for sharing music over the Internet. Despite its modest dorm room origins, that innovation and subsequent permutations had a devastating effect on the recorded music industry worldwide. In Canada, for example, revenues declined by a stunning 50% between 1999 and 2007, after adjusting for inflation. In fact some industry observers, reflecting on the rise of Internet traffic and the concurrent decline in music sales, referred to the launch of Napster as “The Day the Music Died.”
Almost a decade later, however, in 2008, something surprising happened. In order to finance the recording and production of her debut album, an unknown artist in Montreal named Angie Arsenault turned to another Internet innovation and raised $50,000 from 531 “believers” spread across 34 countries using an online market-making platform that virtually no one had heard of – Sellaband. She was the first Canadian to successfully do so. Sellaband had been launched in the Netherlands – with little fanfare – two years earlier, in 2006.
Although it is too early to speculate on long-term industry trends, Prof. Agrawal will present insights based on Sellaband data, of what general lessons might be learned from this unique artist market in terms of peer-to-peer lending and microfinance (believers invest in $10 increments), foreign direct investment (artists raise much of their financing from outside their home country), and crowd-financing (believers have collectively financed only a select few from thousands of artists featured on the site).
Registration will be available from 7:00 until 7:30. At 7:30 sharp we’ll begin the session and introduce our esteemed lecturer, Prof. Ajay Agrawal, Director of the Program on Innovation and Creative Industries at our Martin Prosperity Institute and Peter Munk Professor of Entrepreneurship at Rotman. A synopsis of his presentation is below. After that he’ll lead a Q&A with Sellaband CEO and Co-Founder Johan Vosmeijer and Sellaband recording artist Angie Arsenault. A live cd debut concert by Angie and her band will follow."
This event was organized by the Martin Prosperity Institutes Program on Innovation and Creative Industries. It was hosted at the Rotman School of Management on February 10, 2009