So I was watching Dragon’s Den last night on television.
Dragon’s Den is a show where a panel of very successful business people get pitched to by various wannabe entrepreneurs. Typically the pitches are aimed at raising relatively small amounts of cash in return for a stake in the company. The show is highly amusing in that the business heads will really go to town in probing the pitch in order to determine the strength of the proposal, that’s good entertainment as well as educational, anyone looking at starting a business would do well to watch this for the type of questions which are vital to be asked for any business.
Anyway, last night’s show was particularly interesting as one of the pitches was from a band, who accepted an offer from Peter Jones in the order £75k ($150K) for a 30% state in the bands profit, based on two albums.
Now £75k is not much money in the grand scale of things and a 30% stake is an enormous slice of the bands pie, the potential long-term value could be staggering.
Two things spring to mind for me.
1. Will we start to see more of this type of corporate sponsorship for funding artists/bands. Given that the traditional model of funding is slowly eroding. Could be fantastic revenues for investors if they find a product (BAND) that set hearts on fire.
2. What would this mean for music integrity when the band could be involved in product placement?
Feargal Sharkey (CEO British Music Rights) states “It still takes money and expertise to produce, manufacture and promote a musical recording, which means somewhere along the line, someone has to make an investment – either a label, a brand, the artist themselves or a benefactor like Peter Jones.”