PledgeMusic In Crisis

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PledgeMusic In Crisis

Postby REVO » Thu Feb 21, 2019 5:03 pm

Well, OMD certainly have relied on PledgeMusic of late for their special event marketing, but as of Feb. 7, the crowdfunding giant has frozen all campaigns. It seems to have an inability to pay the artists that has been going from bad to worse over the last year. Many artists have not seen the money they are due, and without that income, they can't manufacture the good that they were pre-selling on PledgeMusic. Then the pyramid collapses. The more I read about this, the more I see their end in sight. It may already be here.

Are there any other viable crowdsourcing music platforms that OMD could turn to for their special projects?
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Re: PledgeMusic In Crisis

Postby BlackPaperCrown » Thu Mar 07, 2019 3:06 pm

OMD forum posting

There are plenty of other crowdfunding platforms to choose from (Kickstarter, Indiegogo, GoFundMe etc) so I too wonder which one OMD will turn to. Or, will they play it safe and just go it alone? Time will tell.

However, they dodged a bullet with the book release and luckily had it distributed just in time before PledgeMusic crumbled. I do wonder if the band have been paid yet though.

Interestingly, PledgeMusic are in a huge mess. They have promised to refund pledges which have been paid but not fulfilled. It is quite hard to understand where they will acquire the money from to do so given they have frozen everything. No new money coming in means the debts just mount up.

If you were not aware, PledgeMusic did take 15% of every single pledge amount as their fee. However, you can argue that, for the past year or so, they have been taking 100% and used it for their own purpose, rather than keeping the 85% separated. Tut tut.

I found a couple of interesting PDFs on the internet about their predicament. Item 1 is a presentation from (as far as I can tell) mid-2018 when they proposed their expansion plans. These included increasing their commission to 20% and taking a cut of future sales; so not just the Pledge campaign sales. What a great plan - where did it all go wrong?

Item 2 is a Registration of Charge legal filing, made on 18th February 2019 which is, as far as my non-legal brain can tell, someone taking a charge over PledgeMusic's assets, presumably as security for a loan. If you feel brave enough to wade through 46 pages of legalise, click on it from this page. Maybe that is how they will fund the refunds.

And, at the time of writing, they have still not filed their Year End accounts for 2018, thus breaching a regulatory deadline to do so. Yes, a total mess.

On a personal note, I had 11 Pledges which were outstanding fulfilment. The money had been taken but the pledge had not been fully completed. I contacted PledgeMusic about the main ones and they said they would refund me, sometime. My breath was not held. I have now contacted my credit card company from which the money was taken and they have nicely refunded 8 of them with a 60 day possible clawback by the company. I don’t expect PledgeMusic to do that. Oh, these were lodged as "Card Purchase Dispute" claims, if you need to do likewise for any of your Pledges.

My intention is to pay the money directly to the artists or via a new crowdfunding route, once they put an alternative in place to finance their new music.

It is a shame to see PledgeMusic go but they did latterly seem to dig their own grave.
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Re: PledgeMusic In Crisis

Postby REVO » Thu Mar 07, 2019 9:07 pm

Yow! Very useful information! I only have the It's Immaterial infamous third album pledge outstanding for several years now. I wonder what I'll need to do to get that straightened up?
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Re: PledgeMusic In Crisis

Postby BlackPaperCrown » Thu Apr 25, 2019 8:50 am

It seems that there are rumours circling that someone wants to buy Pledgemusic, lock stock and barrel. I guess that also means buying their debt and so finally paying the artists what they are rightly owed.

However, the prospective, and brave, purchaser is currently finding out if the artists will remain using Pledgemusic once it is bought. I wonder how many would want to stay with them? Their business model looked fine until they failed to ring-fence the artists' money. And, their fulfilment area was shoddy. Pledgemusic have to radically improve to regain the trust of the artists and the fans.

I think it will take a lot of money to dig Pledgemusic out of their deep deep hole.
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Re: PledgeMusic In Crisis

Postby BlackPaperCrown » Thu May 09, 2019 9:59 pm

Benji Rogers, the man who started Pledgemusic and tried to save it, has stated that it will fall into administration within days -> here. The end of a great idea, bled to death by the greed of the management.
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Re: PledgeMusic In Crisis

Postby BlackPaperCrown » Thu Aug 01, 2019 10:33 am

This week saw a court petition to wind up and shut down PledgeMusic. I am not sure if this means it is all done very nicely with them just switching off the printer and the lights on a Friday afternoon and all going home, but the artists who are still owed millions from their Pledge campaigns are absolutely fuming about this.

Luckily, I claimed my losses from my credit card so I have received all my money back, but not directly from PedgeMusic. Where possible I then sent it to the artists involved in return for their promised goodies.

What this means is that PledgeMusic can never return in its original name. Maybe that is a good thing, given they spent all the money that was not theirs in the first place. Come on - the only people who are allowed to do that is governments!

I wonder if OMD were ever paid for the Pretending To See The Future book
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Re: PledgeMusic In Crisis

Postby BlackPaperCrown » Sat Nov 30, 2019 7:33 pm

A further update is that the official insolvency letter from the receivers states that PledgeMusic had £7.4m of debt and £20k of assets.

I guess those assets will not even cover the legal costs.
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