Artists face heavy losses as online music company folds

A BRITISH rock band is among dozens of pop artists left out of pocket after the collapse of an online music company set up to bypass traditional record labels.

Jesus Jones, which had an international hit with Right Here, Right Now, are estimated to have lost thousands of pounds following the collapse of Pledgemusic, after it went into administration with significant debts.

Other artists owed payments by the British-founded digital label include the US band Dandy Warhols, said to be owed £40,000, and L7, who have outstanding payments of “at least” £60,000.

Jesus Jones, formed in Bradford-on Avon, Wilts, in the late Eighties, described the collapse as a significant setback for many fledgling artists.

In a tweet, the band said: “Hopefully, all artists managed to download their data first? This was expected, I suppose, but it’s still a real blow.”

The total amount owed to artists by Pledgemusic is estimated at anywhere from $1-$3million, with some owed hundreds of thousands of dollars.

Artists such as Jesus Jones said they turned to Pledgemusic as a way of cutting out the traditional middlemen of the industry, avoiding exploitative contracts and gaining more control over their own fortunes.

Following the collapse, Benji Rogers, its founder, announced he was returning to the label as part of a rescue bid. When he failed to find a buyer for the label he said he would concentrate his efforts on paying everyone who was owed money. But some of Pledgemusic’s former acts say they have yet to receive any of the payments they say are owed to them.

On his blog, Mr Rogers said: “I have been in discussions with the management team and board of Pledge and I am convinced that they are committed to fixing the artists’ payments situation as their first priority. I have seen first hand how tirelessly the team, management and board have been working to right the ship and that is why I have agreed to help where I can.

“The first priority is to sort the back payments issue as every penny that is owed to artists needs to get to them in the fastest possible time. A more detailed plan will be shared shortly.”