The proliferation of digital music sources has now completely disrupted the music industry, causing artists, labels and businesses worldwide to search out alternative business models, such as crowdfunding. Mutrs is the latest of these: a combination of NASDAQ and Napster, the platform enables independent musicians to sell shares in their music via a digital exchange market, helping them to earn money in a new, playful, interactive way.
Indie artists and labels are invited to create a profile for their musical output and share audio and video files via the site. When they release a new IMO — initial music offering — it comes with a set amount of associated shares, each valued at a base rate. Consumers are encouraged to become investors — called ‘fansters’. When they find a band or track they like, rather than simply buying the music file as a download they purchase shares in the product, which they can later trade in the MIME — Mutrs Independent Music Exhange — where their value will fluctuate depending on interest from other users.
Fansters can preview all IMOs before investing and cash out their investments anytime. Mutrs take a 10 percent fee for each listing. We saw a similar model recently with the Tradiio app — which enabled users to virtually invest in emerging talent and rewarded them with real-life prizes, but Mutrs takes the system much further by trading in the virtual coins for real money. Are there other ways to add more value to digital music files?