Crowdfunded music site Sellaband bankrupt

The court of Amsterdam has declared the bankruptcy of music site Sellaband. On the site, music fans could co finance new albums. There is every hope of a restart, said the court.

According to founder Pim Betist, who left Sellaband after a disagreement with investors, the bankruptcy was to be foreseen. The biggest failings, says Betist to nu.nl, were a lack of quality control and printing all albums on (expensive) CDs. Sellaband’s management may have had a bit too much confidence in “the wisdom of the crowds”.

Sellaband released albums of over 30 artists. For each album,  more than 50.000 dollar was raised. 

It is a shame that Sellaband didn’t make it. The entertainment industries need all the innovative business models they can get their hands on. Experimentation is key. Of course, some experiments will fail. Let’s hope that this doesn’t discourage the new generation of innovations.

25 February 2010