While the recording industry continues to lose profits, two online companies are reinventing the recorded music business model—and raking in the cash. Europe's SellaBand and Slicethepie are getting fans to finance their favorite indie rock up-and-comers. Amazon UK wants in, but online gambling legislation in the US makes it harder to apply the paradigm here, Wired reports.
Citizen investors at SellaBand and Slicethepie finance artists by purchasing advance copies of an album and shares in the recording for as little as $10. When bands start pushing the $30,000 mark, they can work with big-name producers like the Cure's Dave Allen. Now, Amazon UK will invest $1,000 for every $30,000 in fan-funding for a SellaBand, and send the albums to their reviewers.