News 4th October 2010

Madness Recoup on Power Amp Funding
Investors in Power Amp's deal with Madness have received a 46.9% return over a 19 month period. The deal - the company's first - included the band's album The Liberty of Norton Folgate and a number of tours. Power Amp focus on funding established artists, and recouping investment through a multi-revenue stream - for example from recording, publishing, touring, merchandising, sponsorship etc.

Although Power Amp are currently only funding established artists (Charlotte Church and Carl Barat being the latest additions) Tom Bywater, Power Amp CEO, hopes that once the company proves its capability and reliability, it will be able apply the 'artist-centric' investment model to new artists too.

Album Downloads Hit 50 Million
The BPI and Official Chart Company have released the latest figures for digital album sales in the UK, and after passing the 500 millionth single download last week, legal album downloads have reached the 50 million mark in under four and half years, now accounting for almost 20% (compared to less than 2% in 2006) of all albums sold. In comparison, it took CDs five years to reach this point, and although CDs still account for four out of every five albums sold, Geoff Taylor from the BPI puts the rise in album downloads down to the "choice, convenience and value on offer from digital downloading" and the "confidence" consumers have in downloading.

MySpace Integrates Pledge Tool
MySpace have teamed up with Pledge - a fundraising site which enables artists to make records - to allow artists to create and manage their campaigns via their MySpace account. The move is not a money maker for either party, but instead provides Pledge with access to MySpace users, and conversely, offers artists a new tool. The move hints at what is potentially to come as part of MySpace's restructuring - as Barry Flanigan, MySpace UK says - “introducing more tools and services that let people manage multiple services from their MySpace accounts” in an attempt to rival Facebook, and the more recent Ping.