NEW YORK, Jan. 28, 2015 /CNW/ -- QTRAX, the free and
legal digital music service, announced today a wide ranging plan to
compensate songwriters and artists ("artists") in a more lucrative
and representative manner. The details are available in an
extensive, detailed report commissioned by Qtrax and authored by
one of the Big Four accounting firms.
The Artist Manifesto (see on www.qtrax.com) is effectively an
Artist Bill of Rights with a sweeping set of initiatives that
provide artists with far more input and compensates them fairly and
respectfully. The key initiative is the awarding to artists of the
equivalent of a 30% equity stake. This equity allocation is being
enshrined in a legal entity called the Artist Trust to be
administered independently by a Rights Organization, currently
being selected.
Artists will share in the profits of Qtrax and benefit from any
liquidity event such as an IPO or trade sale, in precisely the same
way other stakeholders accrue wealth.
The 30% Equity allocation will be divested over a 10 year period
to artists based on the number of plays.
"Equity is the only real pot of gold from any of these digital
music services, including our own. Artists are being shamefully
compensated with ridiculously meager distributions while the value
of some digital music services escalates to multi-billion amounts.
Without the creative work of artists there can be no music
services. None. An obvious fact but one that is not respected in
the current economic structure. It's not a question of laying
blame. Perhaps it can't be correctly attributed. But no amount of
congressional pondering is going to alter the rates significantly
enough. The base is so low that even a handsome percentage increase
will not be good enough. Record companies were wise enough to
request equity from music services. The songwriters and artists
were not appropriately organized to do so. It's time they became
owners of these services rather than exploited providers of
content. We invite all digital services, existing & in the
future, to similarly contribute equity to the Artist Trust to be
run entirely for the benefit of Artists under an esteemed Board of
music industry leaders. Distribution of proceeds from equity
post-IPO will provide substantial income to artists and
songwriters" said Allan Klepfisz Founder and CEO of Qtrax.
"As QTRAX builds towards a liquidity event over the next 2-3
years money can be contributed into the Artist Trust in the form of
advertising and sponsorship dollars by brands that believe in the
power of music to connect with young consumers" said Lance Ford President and CMO of Qtrax.
ABOUT QTRAX:
QTRAX (www.qtrax.com) is a unique and emerging player in the
digital music industry that will be launching its newly upgraded
"Free and Legal Music Service" in Q1, 2015. Qtrax is available in
68 countries.
For more information:
Julia Lyschik (COO),
julia@qtrax.com; +1 (646) 678
4542
Twitter
Facebook
Logo - http://photos.prnewswire.com/prnh/20150129/172177LOGO
Photo - http://photos.prnewswire.com/prnh/20150129/172176
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/qtrax-announces-the-artist-manifesto-and-creation-of-the-artist-trust-fundamentally-changing-the-way-songwriters-and-artists-get-paid-300027627.html
SOURCE Qtrax