Music Business/Law Tips - "Bands Invest In Bands"

A business model is emerging whereby a more famous artist becomes a financial stakeholder in a new developing act. Although it is not an original concept per se (as in recent years Lil Wayne took a vested interest in Niki Minaj and ditto Justin Bieber with Carly Rae Jepson, and way back Motown used to always join its acts up on tours, recordings, etc.), the recent pairing of One Direction and their charges the band 5 Seconds of Summer has been quite successful. Essentially how it works is a big name artist like One Direction - in con junction with its management - will find an up and coming artist that would have similar appeal to their fanbase, form a holding company, sign the new artist to them on some level, and farm the act out to a major distributor like Sony, Warners or Universal who will do all the marketing and promotion. One Direction will then take 5 Seconds out on tour as its opening act and use its social media fanbase to help brand the new act. On the back-end, One D and its management share in the net income made by 5 Seconds. 5 Seconds just had a #1 album and big touring and merchandise results, so this has been a win/win for the parties involved. Ben McLane Esq Benmclane.com