Direct-to-fan music platform PledgeMusic has come below fireplace for failing to pay funds to musicians who’ve raised cash by way of the web site over the previous 12 months. In a report by Colin Stutz for Billboard, a number of artists who’ve used PledgeMusic for his or her album and content material campaigns have come ahead with tales about cash being held in limbo. In the case of ohGr, led by former Skinny Puppy members Nivek Ogre and Mark Walk, the band is owed nearly $100,000, they declare. Meanwhile, ’90s rock outfit Fastball say they’re owed over $21,000.
In response to the brand new report, PledgeMusic has issued an announcement to Billboard. “We accept responsibility for the fact that we have been late on payments over the past year,” it reads. “PledgeMusic is working tirelessly on this issue, and we are asking our community for their continued support and patience.” The full assertion reads:
PledgeMusic has at all times been dedicated to serving artist and fan communities. It was established by artists and was born of a necessity to alter the way in which wherein the standard music business operated. It was designed to assist artists and their groups at each stage, and we imagine that PledgeMusic has turn out to be an important a part of the evolving panorama of the music business.
That stated, we deeply remorse that lately we now have not lived as much as the excessive requirements to which PledgeMusic has at all times held itself. We acknowledge that many artists have and proceed to expertise cost delays. These delays to artists are unacceptable—not solely to them, however to us.
Since its starting, PledgeMusic has efficiently serviced over 45Okay artists from rising acts to a few of the greatest names within the business. We’ve supported 60 Grammy-nominated artists and helped springboard 100s of unsigned bands to profitable careers. Our efforts have assisted over 375 artists with chart place on the Billboard Top 200. Our platform has supplied near $100m of income to its artist group.
Mid 2017, new traders got here into PledgeMusic with the aim of strengthening the corporate and enhancing the worth proposition for artists and followers. After substantial investments within the enterprise over the previous 18 months, we imagine we now have made good progress to that finish, but it surely hasn’t been sufficient. That stated, the corporate has lower its working bills practically in half over the previous 12 months. We’ve overhauled key elements of our monetary and working techniques, whereas including expertise to our roster and making enhancements to the platform like our Vinyl Store, D2C artist store-fronting and our information analytics.
While the corporate has made progress, we nonetheless have not reached our objectives. PledgeMusic has been in discussions with a number of strategic gamers within the business who’ve curiosity within the PledgeMusic platform. We are evaluating various transactions with these potential companions, and we plan to announce particulars of this within the subsequent 60 days. It is our expectation that funds will likely be introduced present inside the subsequent 90 days.
We settle for duty for the truth that we now have been late on funds over the previous 12 months. PledgeMusic is working tirelessly on this difficulty, and we’re asking our group for his or her continued assist and endurance.
The state of affairs surrounding PledgeMusic emerged final June, when Variety printed a report detailing numerous artists’ considerations concerning the overdue funds. At the time, CEO Dominic Pandiscia said, “With respect to payments, there have certainly been payment delays, but the company has always paid artists and should be completely caught up in the near future.” (Pandisica would step down months later in September 2018.)
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