In 2013, record labels remain the largest investor in new music by a wide margin, and the aspiration of many artists and small companies will still be to secure funding from a corporate partner, but the diversity of companies within the industry that can provide such significant deals is not what it was. As a result, artists, musicians, songwriters, composers and small companies which work with them are now carrying a much greater responsibility for the funding of music than they did in previous decades.
Individuals and small enterprises have found accessing finance from other sources to be challenging, particularly for recorded music. Statistics show that across all sectors of the economy around 43% of small firms say that they have received bank loans and just 2% of firms who approach investors go on to secure investment. For recorded music, few examples of the use of bank loans and large scale investment have been found by researchers, although the live music sector is doing rather better in this respect.
The launch of a number of new grant and loan funds in 2011-2013 which are open to the commercial music sector have opened up some new funding opportunities, and crowd-funding and corporate sponsorship are also widely used by the sector.
Taken from ‘Easy Money? The Definitive UK Guide To Funding Music Projects’ written by Remi Harris. This is MusicTank’s 6th publication which was published in September 2013.
From Tom Kiehl, UK Music
Access to Finance remains a key issue of concern across the music sector. Amongst music SMEs there is a low awareness of the finance schemes being made available for companies to access. Many are not primarily motivated by profit or financial gain, but instead by the process of releasing music and participating within an exciting industry. They are also time poor, required to multi-task and deal with the complexities of running both a physical and digital business. For many small music companies, accessing finance simply requires a level of information and resource they do not possess.
There are opportunities out there. For example, the Start-Up Loans scheme, launched in September 2012, has supported 25 music businesses. 65 music businesses have also been offered loan facilities since January 2009 under the Enterprise Finance Guarantee. Recently, the Seed Enterprise Investment Scheme has been used by music companies to unlock finance.
Funds and Investors for Music
Musicians Benevolent Fund
Momentum Music Fund
PRS Open Funding
BBC performing Arts Fund