New York (August 20, 2020): Paperchain, the fastest way for creators to access their digital streaming revenue, today announces that it has launched its first round of cash advances to independent artists, labels, and distributors. Using Paperchain’s new on demand payments platform, digital media creators and owners can now access their streaming revenues from Spotify, Apple, and YouTube as regularly as every two weeks, accelerating payments from these services by two months in most cases.
With Paperchain’s unique data-backed, short-term advances, rights holders are now able to access their forthcoming revenue almost immediately at a cost of 1% per month, a significant reduction in the cost of capital for the independent music and media industry.
To date, Paperchain has paid out nearly $160,000 in streaming revenue to its users.
Paperchain expedited the launch of its revenue advancing product in response to the devastating impact COVID-19 has had on important revenue sources for labels and artists, and with increased demand from its users for access to their streaming income. Paperchain is answering this need by removing the pay cycle delay that occurs with traditional music payments and as an alternative to traditional funding models at a time when the industry needs it most.
Paperchain officially launched its revenue advancing product with multiple independent record labels, including Kartel Music Group, Zndrke and NuWorld Music Group, among others.
Paperchain founder and CEO Daniel Dewar, said the product comes at a time when media companies and creators need an alternative to traditional financing options. “For most artists accessing advances meant signing a label deal, or if you’re a label, doing a joint-venture with a major label or distributor, or running up credit card debt. More recently you can try to get a long-term loan against future revenues that comes with interest rates as high as 45%. These loans can also tie up your revenue stream for years before the loan is repaid.”
Dewar continued, “Paperchain is not that. We’re simply making it possible for creators and labels to get access to their already earned revenue faster. Right now we’re able to help creators get paid every two weeks, and we’ll soon be able to make daily payments. We want to be the bank for these ecosystems and we are well on our way to becoming the most cost-efficient source for immediate capital across the entire streaming media economy.”
Zndrke CEO Guillermo Perez, said the faster payments by Paperchain provided a better offering to their artists. “When we told them they were not only getting paid April royalties, but May royalties as well, they were surprised and very happy with the announcement. So far, we have gained one month against the typical three month delay.”
Damario Pope, founder of record label NuWorld Music Group, said the faster payments meant timely re-investment back into their projects. “As a start up label, we are in a phase where we have invested a lot of money into our releases. Being able to access the revenue faster has meant we can invest that money into those projects much earlier than we would normally be able to.”
Included in the company’s advisory board is Kei Henderson, co-founder of Atlanta-based record label and management company Since the 80s (JID, Asiahn, Jordan Hawkins) and was the former manager for 21 Savage, who joined the advisory board at the beginning of 2020. “When I first sat down with the Paperchain team and learned about what they were trying to do, my mind was blown. If I had access to this when I was managing artists, we would have never signed a label deal. It would have completely changed how we managed our business.”
Paperchain’s offering is currently open to record labels and artist/creator teams with direct deals to streaming services, as well as direct YouTube influencers and creators. Those working with distributors should request their distributor to integrate with Paperchain.
Sign up at paperchain.io.
Paperchain is the easiest and fastest way for creators and media companies to get paid. Paperchain customers simply connect the data feeds from their streaming platforms or point of sales systems, and through Paperchain, can access any of their sales revenue long before it is typically paid out. At the core of Paperchain’s technology is its deep learning model that connects to the bulk reporting services of Spotify, Apple, YouTube, Merlin, and other streaming services, and uses historical data to accurately predict stream payout rates. By recognizing revenue earlier in the streaming cycle, Paperchain then pays out the earned revenue faster and at a much lower cost than traditional advance models
Paperchain is currently tracking over $9 million in digital streaming revenue volume across 5,500 record labels and 30,000 artists. Paperchain’s music advisory board includes Kei Henderson (Since the 80s), Joe Conyers (Downtown Music Group) and Colleen Theis (The Orchard).