Aime Street: A $750K Virtual Investment
Posted by Andrew | Posted in Startups | Posted on
Tags: $750K Virtual Investment, Entrepreneurial, Million Dollar Startup Game, Smart, Startups
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In my opinion Amie Street is one of the most exciting new businesses I have seen in a while. So what’s the basic idea? Â
Business Model:
There are a number of elements:
An ‘iTunes’ for Independent bands and musicians. With Aime Street they can get an audience, get paid and perhaps get ‘discovered’.
Listening members join for Free and can download songs that start off Free but as those songs gain in download popularity, the price increases to keep pace with demand up to a .98 cent cap.
Bands receive 70% of all revenues for their songs after the first $5 to cover set up costs.
Some Core Functionality:
- There are no digital media restrictions so downloaders can use the files in multiple because there are no big labels or their lawyers breathing down downloaders necks.
- People who recommend music to others gain music credits when those songs begin to earn revenues. Those credits can be used for more downloads.
- Amie Street has multiple music genres, single songs and albums and you can sample songs before download.
Likes:
Word of mouth will drive this business from a number of dimensions. This is such a well thought out business model which gives significant benefits to all. Aime Street makes money, the bands make money and listeners can download new songs for free and get credits if they recommend new music plus there’s a real incentive to spend time on the site and ‘discover’ great songs before the other Aime Street members.
Also this should really help musicians in a number of ways…the ability to get their music out to a potentially wide audience, make some money and if they regularly top the Aime Street charts, they could land themselves a contract with the smart record companies who should follow ‘chart’ activity within Aime Street.
Dislikes:
There really isn’t much to dislike about Aime Street.  A question I have is what happens when a band or vocalist gets signed? Will Aime Street need to go and ‘pull’ those songs from their site? Also will this create true fans and followers for the bands or will they become a weekly fad as they hit popularity and then become passe. What am I talking about? That’s just the music business! Sorry but I really am scratching my head and am not finding much to dislike. I recommend you check out Aime Street.
Amie Street really does seem to be a great deal all around…especially if you are interested in ‘discovering’ a band before they go through the image machine.
My Virtual Investment:
With my virtual $1M, I would pull out my headphones to invest $750K in Aime Street.
Andrew
Founder
http://www.AdvisorGarage.com
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Hey Andrew,
Thanks for the 750K. Guess we’ll have to see what happens when that situation pops up. An important point along those lines is that we don’t tie down artists who upload their music with any sort of exclusivity agreement. The more people that hear the music, the better.
Lucas
If I had it I would give it to you tomorrow and I’m sure it would be one of the smartest investments I’ve made.
Amie Street is going to be huge! Just don’t sell out too soon!!!!!!
Andrew