Band around town getting some serious industry heat of late are Honey Ryder. Why are TMV discussing a new artist you may ask? Well firstly the band and management in our view have taken DIY to a whole new level. One that puts it close to the financial force we would expect from a major label release.
TMV caught up with Jon O’Mahony who produced the bands album and also the two band members Martyn and Lindsay. What’s unique about this whole release strategy is that the band and producer sought finance after the fact, where the album was already completed. This flies in the face of the seemingly never-ending abundance of fan funded models focused on securing album financing via artists own fans.
Producer and artist manger Jon O’Mahony already had some incredible credits behind him including as an artist as well as a producer. His production credits include; Bryan Adams, Natasha Bedingfield, Kylie Minogue and Liberty X to name a few.
What do I see as unique? Well firstly the band financed the recording of their own album by working hard and saving. In all Honey Ryder spent close to £45000 on recording and mixing their album. None of the other fan-funded models provide for such a large recording budget, which is generally accepted as an industry minimum for an international standard record.
The key factor of significance is that Honey Ryder and Goldust Productions put together a very in-depth business plan with a break-even requirement of sixty-eight thousand album sales. So, the DIY ethic was as follows: set up a company with 200 shares, 100 of which would be sold at £3500 per share, providing each shareholder with 0.5% equity for every share brought. This provides a total promotion and touring budget of £350000. In TMVs mind this budget level is on a par if not above in some cases what a major label would spend in terms of marketing and touring to break a new band.
To date, Honey Ryder have sold just over 70 shares at the aforementioned rate (providing them with £245000). Worthy of mention is also the fact that Eric Nicoli ex Global Chairman and CEO of EMI music is currently the largest shareholder in the band. So, if there are any wealthy speculators out there amongst TMVs readership it may be a viable investment, especially considering investment tax relief benefits are applicable…
What TMV found incredible is that the artist’s publishing is not included in the equity? How they managed to exclude this is beyond TMV, but our praise goes out to them. The breakdown is as follows; each share equals 0.5% of equity in all album and single sales for eternity. Merchandise and live income wise, shareholders only share in the first three years profits and then 100% reverts back to the band. To us here at TMV this is a killer proposition for the artist.
Before any detractors out there from the label community start commenting, lets focus on the achievements to date for the band in terms of marketing and touring. Firstly, the lovely marketing and touring budget has to date witnessed their first single enter the charts at no# 32 and national UK tours with the likes of Michael Bolton, Will Young and others.
TMV states that it sounds (pun intended) like the band are in control of their music and future. Another big difference is that Honey Ryder do actually write all their own songs. To me that is talent enough, from the usual manufactured pop performers who look good but do not possess a dam ounce of creative song writing within their body.
So TMV asks is this a viable route to market for pop artists that the major labels are going to have to compete with? Time will tell! Does it provide real opportunity for artists to self-release their music with marketing and tour budgets on a par with major labels? Sure does! And furthermore, it leaves them in control without having to sign a 360 deal where their musical soul’s will be churned and burned.
As this post is about the artist and music, it is worth noting that the 2nd Honey Ryder single is released on Monday 16th February. Go check out their music here www.honeyryder.co.uk
On another note, I will be chairing a panel at CMW (Canadian Music Week), focusing on New Business Models that may provide serious opportunities for new up and coming artist. Jon O’Mahony the manager of Honey Ryder will also be on the panel. To check out the panel topic and its panelists click here.