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All pop artists like to say that they owe their success to their fans. In the case of British band SVM,
it’s indeed true. The band is currently recording songs because 358 fans contributed the £100,000 needed
for the project. The arrangement came via MMC, an online record label that uses Web-based,
social-network-style “crowd-funding” to finance its acts.
Here’s how it works: MMC posts demos and videos of 10 artists on its website, and users are invited
to invest from £10 to £1,000 in the ones they most enjoy or think are most likely to become popular. Once
an act reaches £100,000, the financing process is completed, and the money is used to pay for recording
and possibly a concert tour. Profits from resulting music sales, concerts, and merchandise are split three
ways: investors get to divide 40%; another 40% goes to MMC; the artist pockets 20%. The payoff for
investors can be big. One fan in France who contributed £4,250 got his money back 22 times over.
Crowd-funding musical acts is not new. But MMC takes the concept to another level. First of all,
investors can get cash rather than just goodies like free downloads or tickets. Also, MMC is a record label.
It has the means to get its music distributed around the world and to market artists effectively. “Artists
need professional support,” says the CEO of MMC’s international division.
While digital technology and the Net have created a do-it-yourself boom among musicians, success
is still a long shot. Out of the 20,000 records released in the U.S. in 2009, only 14 DIY acts made it to the
Top 200. Also, with less revenue from recorded music, music companies have become less likely to take
risks, which has led to fewer artists receiving funding. The crowd-funding model, however, allows for
more records to be made by spreading risk among hundreds of backers. And the social-network aspect of
the site helps expand fan bases; that is, investors become a promotional army.
【題組】37. How much money does a band have to raise via MMC to have their music recorded?
(A) £10. (B) £1,000. (C) £4,250. (D) £100,000.
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