The PledgeMusic Story: Success to Shutdown

PledgeMusic was founded in 2009 by Benji Rogers, a passionate musician and entrepreneur. He had a vision to create a platform that would allow artists to connect directly with their fans and raise funds for their projects.

The platform quickly gained popularity, and by 2012, PledgeMusic had already facilitated over 100 successful campaigns. This was a testament to the power of direct-to-fan engagement and the potential for artists to build a loyal community around their work.

In 2015, PledgeMusic expanded its services to include a full-service record label, allowing artists to release their music through the platform. This move marked a significant shift in the company's business model, as it began to focus more on music distribution and less on simply facilitating fan funding.

PledgeMusic continued to grow and evolve, with the platform being used by artists such as Sting, Ed Sheeran, and The National.

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PledgeMusic had a payment issue since 2018, with reports emerging of artists not being paid in accordance with their agreements with the company.

In 2018, PledgeMusic's accounts for 2017 were four months overdue, and the company had not filed them with Companies House in the UK.

PledgeMusic issued a statement in January 2019 claiming they were having discussions with several strategic players to resolve the payment issue and expected payments to be brought current within 90 days.

Benji Rogers, the founder of PledgeMusic, returned to the company in January 2019 as a volunteer strategic advisor and observer to the board, stating that all funds coming into the company from then on would be managed by an independent third party.

A company charge was placed on PledgeMusic by Sword, Rowe & Company LLC in February 2019.

A leaked email in May 2019 revealed that FRP Advisory LLP were due to be appointed as administrators for the winding up of PledgeMusic.com, and they were attempting to find potential buyers for the company's business and assets.

PledgeMusic went into administration in May 2019 after efforts to sell the company failed.

Benji Rogers, the company's co-founder, stated that the crowdfunding platform had used money pledged for artists to pay off its own debts instead.

Many artists, including John Zorn, were left with outstanding balances, with Zorn owing $197,559 for his 25-year project, The Book Beriah.

In Parliament, Labour MP Kevin Brennan raised concerns about musician and consumer protection in light of PledgeMusic's collapse.

A survey was launched by UK trade bodies to investigate the impact of PledgeMusic's failure on the industry.

The PledgeMusic.com website became unavailable sometime between July 13 and July 25, 2019.

A petition to wind up PledgeMusic.com was heard in the High Court of London on July 31, 2019.

PledgeMusic's business model was designed to support musicians directly, with a sole focus on raising funds for them. This approach set it apart from other crowdfunding platforms.

The platform didn't retain any ownership or rights to the music created through it, giving artists full creative control. This was a major draw for musicians looking to maintain their independence.

PledgeMusic offered a range of features to encourage artists to offer exclusive content to fans, including incentives and charity contributions. This helped build a strong connection between artists and their audience.

Here are the key features of PledgeMusic's business model:

PledgeMusic had two distinct campaign types: direct-to-fan and preorder. In direct-to-fan campaigns, fans weren't charged until the project target was reached, while in preorder campaigns, fans were charged immediately and the artist was paid upon project completion.

CC Smugglers, a Bedford jazz and blues band, lost £20,000 after PledgeMusic collapsed in July 2019.

The band's founder, Richie Prynne, used his father's pension funds as an advance to repay the debt, expecting it to be repaid.

Fans had donated £20,000 to PledgeMusic to help the band produce an album, but the website stopped trading before they could receive the funds.

The band had started playing bigger venues and festivals, including Glastonbury, Latitude, and the Cambridge Folk Festival, thanks to the crowdfunding total.

CC Smugglers released a record that went to number one in the jazz and blues chart using the £20,000, but now they're selling back catalogue tracks to try to get the money back.

The Musicians' Union general secretary, Horace Trubridge, expressed sympathy for the band, saying his "heart goes out" to them.

PledgeMusic issued a statement before its collapse, saying they regretted not living up to their high standards.

PledgeMusic's business model was designed to support musicians directly, making it a direct-to-fan platform rather than a crowdfunding website.

The site focused solely on raising funds for musicians, which set it apart from competitors. This focus allowed artists to connect directly with their fans, creating a more personal experience.

PledgeMusic didn't retain any ownership or rights to the music created through the platform, giving artists full control over their work. This was a key aspect of the site's business model.

The platform encouraged artists to include contributions to charity, adding a philanthropic element to their campaigns. This helped artists give back to their community while engaging with their fans.

PledgeMusic absorbed all transaction processing costs involved in pledging on a project, ensuring that artists didn't lose any of their earnings. This was a significant advantage for artists using the platform.

To incentivize fans, artists could offer a wide range of exclusive content and rewards. This helped build a loyal fan base and created a sense of community around the artist's work.

The platform had two distinct types of campaigns: direct-to-fan and preorder. In direct-to-fan campaigns, fans weren't charged until the project target was reached, while in preorder campaigns, fans were charged immediately.

Here's a breakdown of the key features that distinguished PledgeMusic from other platforms:

Charity was a big part of PledgeMusic's business model, with 67% of projects linked to a charity by 2014.

Artists had the option to donate a percentage of their total or post-goal revenue to a charity of their choice, showing a commitment to giving back.

This meant that artists could make a real difference in the world, whether it was a local cause or a global issue.

PledgeMusic allowed artists to raise money for their projects through campaigns. Some artists used the platform successfully, but others faced issues with money being withheld.

OhGr released an album called "Tricks" in January 2019, which was funded through PledgeMusic. The album was an independent release.

Failure's album "In The Future Your Body Will Be The Furthest Thing From Your Mind" was also funded through PledgeMusic in 2018. However, the band allegedly had $75,000 withheld by the platform.

Neil Innes' album "Nearly Really" was funded through PledgeMusic in 2018, but the platform allegedly withheld £23,000 from the artist.

Some artists had successful campaigns, but the platform's reliability and transparency were called into question by others.

Here's a list of some of the artists who used PledgeMusic to raise money for their projects:

PledgeMusic allowed artists to release exclusive album songs to their fans in exchange for a pledge, often with rewards such as signed merchandise or early access to the album.

This model was a key part of PledgeMusic's business strategy, allowing artists to connect directly with their fans and build a loyal community.

PledgeMusic artists released over 10,000 albums through the platform, with many artists using the exclusive song release as a way to build hype and excitement for their upcoming releases.

The platform's focus on community and exclusivity helped artists to build a dedicated fanbase, with some artists reporting increases in sales and streaming numbers after releasing exclusive content on PledgeMusic.

Many artists reported earning significantly more from PledgeMusic than from traditional record labels, with some artists earning up to 80% of the revenue from their album sales.

PledgeMusic's platform allowed artists to connect directly with fans, raising over $100 million in pledges to support their projects.

The site's community-driven approach enabled artists to share their creative vision with fans, who could then contribute to the project's funding.

PledgeMusic's artist success stories include the likes of Nick Cave, who used the platform to fund his album "Skeleton Tree".

This album's funding campaign was a huge success, raising over $200,000 from fans.

PledgeMusic's platform also provided artists with a way to offer exclusive rewards to fans who contributed to their projects, such as signed merchandise or early access to new music.

These exclusive rewards helped to build a loyal fan base for artists who used the platform.

By giving fans a sense of ownership and involvement in the creative process, PledgeMusic's platform helped to foster a deeper connection between artists and their audience.

This connection was a key factor in the platform's success, with many artists crediting PledgeMusic with helping them to build a more engaged and loyal fan base.

PledgeMusic was formed in the UK on 1 October 2008 and registered with Companies House.

The company's early years were marked by rapid expansion, with several complementary companies being formed under the PledgeMusic banner. PledgeMusic Retail Ltd was formed on 18 June 2009, and PledgeMusic Recordings Limited was formed on 18 August 2010, originally named PledgeMusic 2.0 Limited.

PledgeMusic Publishing was also formed on 11 November 2010, marking the company's continued growth and diversification.

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Ginger Wildheart's PledgeMusic campaign won the 2012 Classic Rock Awards 'Event Of The Year' award.

By 2013, nearly thirty artists who used PledgeMusic had signed label recording contracts.

PledgeMusic reported a 90% campaign success rate in 2014, outperforming Kickstarter and Indiegogo.

Artists on the site were able to raise an average of 140% of their goal, which is a significant achievement.

PledgeMusic teamed up with Lynda.com to produce a documentary about 'super fans' and their role in the music industry.

The documentary featured footage and interviews from SXSW, as well as insights from artists like Nicole Atkins and San Fermin.

PledgeMusic was formed in the UK and registered with Companies House on 1 October 2008.

The company started small but quickly expanded, with several complementary businesses emerging under the PledgeMusic banner.

PledgeMusic Retail Ltd was formed on 18 June 2009, suggesting a growing focus on retail operations.

PledgeMusic Recordings Limited was established on 18 August 2010, originally named PledgeMusic 2.0 Limited, indicating a shift towards music recordings.

PledgeMusic Publishing was registered on 11 November 2010, further expanding the company's reach into the music industry.

The formation of these complementary companies marked a significant milestone in PledgeMusic's growth and development.