Baboom starts paying directly to artists and labels

Music streaming service Baboom has announced it has started to make payments to artists and labels using its ground-breaking ‘fair trade streaming’.

Last month when the Auckland-based service launched with a A$10 monthly subscription, it was the first to offer the high 90% split to rights holders and 100% transparency. Money went straight from users to the artists that they streamed.

This was unlike other services which first pay artists a nominal amount per stream, and then pay them a share of its overall revenue, based on how many streams the artist has received.

Baboom CFO Tony Smith reported this week, “Stoked to report that our first month streaming distribution statements have been delivered and paid directly to our Baboom artists.

“Our Fair Trade Streaming model calculates streaming revenue based directly on fan subscriptions and delivers a detailed statement to all artists and rights holders in a transparent way.

“The artist can easily see in what part of the world their songs were streamed and how their share of the subscriptions has been calculated. Finally artists are being treated the way they should be and are being compensated fairly and quickly with 100% transparency."

Mikee Tucker, the company’s Head of Content added, “Whilst daily direct-to-artist payments for downloads have been flowing from Baboom since day one, this is the first fair trade streaming cycle. To see the artists overwhelmingly positive reaction to our new model is what we’ve been waiting for. The revolution is here and transparency is the new black."

Baboom was founded by Kim Dotcom, the controversial and larger-than-life identity behind Megaupload, the file sharing and locker service that got shut down in early 2012. Dotcom had started working on Baboom even before the authorities killed off Megaupload, initially with the working title of Megabox.

But last October he sold his shares saying that the music industry had demonised him so much as an internet pirate, that Baboom would never be allowed to grow as long as he was associated with it. It is run by Tucker (the founder of the Loop record label who met Dotcom when he was making his Good Times album) and CEO Grant Edmundson.

Last month Dotcom told TMN he is still involved with Baboom: “I have no business ties. But it's my brain child and of course I'm supporting the development team. They are my friends and I'm proud of them.”

Baboom’s point of difference in entering a crowded market was to claim that “it is built for the artist”. Artists are in control of their content and are in control of how to share and monetise it, and if they want their music downloaded or streamed.

It also gained brownie points for its revenue sharing, an innovative backend which paid artists (and rights holders) on a daily basis to their PayPal account with a report detailing where all the money has come from and who is getting paid what. They also get an analytics reports on who’s listening to their music and where, which will help artists devise their touring and marketing schedules. Baboom also allowed their music to be heard on high fidelity files.

In Australia and New Zealand, Baboom’s royalty calculations were endorsed by performing and mechanical rights society APRA AMCOS.