Payments for modern day music companies

Published on
Feb 6, 2023
Written by
James Roeser
Read time
8 mins

James Roeser

Chief Business Development Officer

Key Takeaways

  • Shaped by technology, modern day music companies are beginning to offer services on an a-la-carte basis
  • Music companies are competing in the ways they leverage technology to provide better offerings for artists
  • Rimark enables new and efficient payment systems for music companies, banking solutions, and yield opportunities
  • Rimark provides the technological infrastructure for enhanced offerings between music companies and the artists they work with

Kiala is an indie-pop artist based in Los Angeles. She is working diligently to take her career to the next level, and as an independent artist she is actively seeking a partner that can support her. Thankfully she’s in the day and age where technology has shaped the modern music industry. New and innovative music companies are increasingly offering services on an a-la-carte basis through flexible models of agreements, and artists stand to benefit. Kiala has been asking around her network for recommendations and frequently hears wonderful things about a company called Velocity Music. She gets an introduction from an artist friend who has had positive experiences working with Velocity in the past, and sets up a meeting for the following week.

As the week passes, Kiala grows increasingly excited about Velocity because of their focus on leveraging technology to create an artist-centric approach. She’s also thrilled because she just finished her next EP and is conceptualizing new ways that she will reinforce the budding relationships she has with her fans. Of course, there are many financial roadblocks when it comes to executing on the experiences she wants to create, but Kiala loves to be creatively savvy with the technological tools she has access to. She hopes to be able to bounce some of her ideas off of the team at Velocity if everything goes well.

Finally, the day has come and Kiala meets with Shelby from Velocity Music’s Marketing Department and Ryan from the Label Services team. They break down some of the unique ways that they work with artists and offer a non-binding opportunity for Kiala to distribute her music through Velocity. This also enables her to gain access to an internal suite of self-service marketing and analytics tools. They explain how this introductory agreement is a great way for both of them to test a working relationship with one another and explore future opportunities to enhance their agreement afterwards.

Shelby and Ryan also share about their direct partnership with Rimark, a financial services & rewards company. Kiala had heard of friends using their Rimark Card for everyday cash-back rewards, but she was unfamiliar with the services Rimark provides for companies like Velocity. She discovers that she can gain immediate access to her royalty earnings with a Rimark debit card and wallet, expediting a process that can sometimes take over 90 days. This is cool and all…but hardly revolutional. Inefficient payment systems is a long-dated issue suffered by creatives, but it’s hardly enough to convince Kiala that Velocity is the right fit for her. So she begins to probe deeper.

Shelby and Ryan inform Kiala that they offer artists at her level the ability to receive micro-advances of their royalty checks up to three months before they are distributed from streaming platforms. Of course, this is dependent on the results of her hard work and effort, but Velocity has a system in place that sets them up to support artists like Kiala along each step of their developing career.

Once Kiala meets certain KPIs established by Velocity, she will be invited to join their Premier program. Kiala, along with any artist, could join Velocity’s Premiere offering for a set price at any point in time, however particular KPIs are in place for an artist to unlock Velocity’s additional suite of services and offerings. Among them is an opportunity to request an advance from Velocity. This requires an application and takes into consideration factors such streaming metrics, social media engagement and intended use of funds. If awarded an advance, it would be immediately available through the Rimark card. In the future, artists like Kiala could even stake their balances to generate passive income through investing this money.

Money certainly supports artists of all levels, but help is conducive on various fronts, from creative support to pitching and promoting. One thing that sets Velocity apart from many competitors is their in-house studios and equipment available for rental. Premiere members can use their Rimark card as a pass to access these facilities, and they can swipe the card to pay for studio time, gear rental, and even food and beverages. These offerings are available for a set price or subscription model, and additional offerings include one-on-one mentorship meetings, pitch for sync placements, feedback on music, playlisting support, partner discounts, exclusive events, and more. The best part of all this is that Premiere members can redeem these offers at a discounted rate and benefit from even further discounts when they complete various incentives and promotions from Velocity.

This is made possible because Velocity has established their own BrandCash with Rimark, meaning that their members can earn and acquire points that are redeemable for these perks. All of these services are available at a discounted rate when members use their $Velocity BrandCash because it keeps the money growing in circulation within the community, rather than diluting outwards.

This BrandCash can be earned in various ways. For starters, when members join at the Premier level, they receive a preliminary advance (or cash-back) payment in the form of $Velocity, which can be spent exclusively on their offerings. Furthermore, Premiere members can have their royalty payments deposited in the form of $Velocity, which enables immediate payment and access thanks to Rimark’s use of blockchain technology. Of course, these funds can be transferred to a bank account or spent anywhere on the Rimark Card/Wallet, however it can be worth even more when reinvesting it into their career by redeeming with an offering from Velocity. $Velocity can also be earned by completing various call-to-actions such as referring new members, actively participating in the Discord, attending events, completing milestone achievements, and more.

Okay, now this is pretty next level. Kiala is quite convinced that Velocity is a great fit for her, and that she can meaningfully contribute to the community they are building. Before they wrap up the meeting, Kiala utilizes the remaining minutes to soundboard some of her marketing ideas. Shelby, Velocity’s Marketing Manager, loves Kiala’s focus on owning her fan relationship, and recommends that she takes a look at how Rimark can be leveraged to find and engage superfans.

It’s an exciting time to be in music and tech, and we at Rimark are beyond thrilled to support companies and creatives across the industry.

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