Are fund-raising websites the future for record labels?

News: 8th June 2010 by Stef Loukes under Record Labels, Selling & Distributing Your Music

Source: http://www.flickr.com/photos/rene_ehrhardt/2488059144/

Record labels are on a constant search for new and unique ways in which to produce effective and popular direct to fan releases. The interesting report from Reuters is a case study of US based Kickstarter and the London based Pledge music.

For a small fee based on your revenue gained from a campaign, the websites are helping musicians to allow fans to fund their musical or creative projects in exchange for a copy of the record and related merchandise. Pledge music also offer the artist an option to donate a proportion of funds to one of it's 82 affiliated charities. More details on both companies can also be found on their websites below.