Digital distributor Vydia has chosen the Royalty Exchange online marketplace to fund advances for independent labels and artists through its platform.
According to Vydia, labels and artists who use their platform to distribute their music will be able to apply for an advance on their future license fees as part of the partnership, which the Royalty Exchange investing community will meet.
Vydia adds that “Artists have complete control over how much upfront payment they can ask for, how much they pay back and, unlike conventional advances, retain full rights to their music”.
The way it works is for Vydia customers to set the minimum advance payment they will accept and the maximum amount they will repay in return.
Royalty Exchange publishes the request on its marketplace, where investors can view the catalog’s profit history and then offer the option to fund the advance in return for collecting a known fixed amount.
The bid is made in an auction format. The more bids are received, the higher the advance that the artist receives. However, the investor financing the advance will only collect the amount listed in advance.
The better the catalog, the faster the advance payment will be made. Once the repayment is complete, the artist will start collecting royalties again.
However, according to Vydia, when the catalog struggles, artists don’t have to pay a fixed monthly amount that they don’t have.
As a first test of this program, Vydia cites an example of an artist requesting an advance payment of $ 400,000 in exchange for a repayment of $ 571,000. The auction offered the advance of up to $ 444,000.
“This partnership enables us to offer independent labels and artists an alternative to signing a big label deal once they succeed with a viral hit.”
Roy LaManna, Vydia
Roy LaManna, CEO of Vydia, said, “This partnership allows us to offer independent labels and artists an alternative to signing a big label deal once they succeed with a viral hit.
“These artists have already proven they know how to break a song. With that money, they have the power to take their careers to the next level.”
“We are honored to be able to offer this service to a future-oriented distributor like Vydia.”
Anthony Martini, license exchange
Anthony Martini, Partner at Royalty Exchange, added, “We are honored to be able to offer this service to a forward-thinking distributor like Vydia.
“In this way, Vydia can offer its artists and labels a valuable financial service provider without going out of pocket or using a line of credit.
“In addition, the size of the advance that Royalty Exchange investors can make is far higher than what artists can normally expect from other digital distributor loans.”Music business worldwide