Music Industry News Network [02-18-2014]
FanDistro Enables Bands To Sell Their Music For Bitcoin
FanDistro is the first website dedicated to musicians that allows music to be sold for Bitcoin. The currency, which is not controlled by any bank or government, can be used for payments with effectively no processing or transaction fees. This means that FanDistro are able to pass on more money to artists and their chosen charities.
FanDistro is a platform, used by indie and signed artists including Fat Boy Slim, Lordi, and Socionic, that encourages bands to reward their fans with gifts for sharing their music. The website was created by a small group of musicians based in Connecticut (US) to help developing artists build their fan base while supporting charities. By default, 20% of all music sales go to a charity of each artist’s choosing.By eliminating the transaction fees imposed by payment processors and digital music stores, FanDistro believes that they can put an extra 10-15% of revenue produced through the website back into the hands of artists.
Michael Penfield, the Founder of FanDistro, believes that fans are also more likely to purchase music using a virtual currency like Bitcoin. “There are studies showing that we’re more likely to spend money when using a virtual currency. That’s why casinos use casino chips. I believe that the ease of use, lack of government influence, and low transaction costs of using Bitcoin makes it an ideal currency for purchasing music. We’re still in the early stages of Bitcoin adoption, but in a year or two I can see this being the norm.”
The Bitcoin currency is rapidly increasing in popularity around the World, particularly in countries without a stable currency or banking structure. One of the extra benefits of accepting Bitcoin is that it will make music accessible to a wider global audience. FanDistro is using coinbase.com to process and store Bitcoin.
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