Austin startup Set.fm raises $1.2 million to launch live music recording app [Austin American-Statesman]
(Austin American-Statesman (TX) Via Acquire Media NewsEdge) Sept. 04--As CD sales continue to plummet, musicians are looking for new ways to generate revenue.
Austin startup Set.fm has come up with a mobile approach -- let bands capture audio recordings of their live performances and sell them to fans using a free downloadable app.
The company said Wednesday that it has raised $1.2 million from Golden Venture Partners of Toronto to launch its service and continue product development.
Founded in 2011 as DejaSet, the 10-person company was previously self-funded.
"When you look at studio recording revenue, it's going almost to zero," said CEO Matt Peterson. "By using technology that most bands already have, we're helping them get more revenue from their live shows. For some artists, making an extra fifty bucks a night can make it possible to stay on the road."
Set.fm has created an app for the bands to record their content and another one for consumers to buy the songs.
Using Set.fm Studio, musicians can capture their recordings using an iPad, iPhone or desktop. Set.fm software streams the music from the soundboard, converts the analog signals into digital signals and uploads the performance in real time.
Artists set a price for their set, typically from $5 to $20, and then make the recording available for sale.
Immediately after the show, fans can download the recording from the Set.fm app or from Set.fm's website.
"Fans love to capture the experience of a live show with their phones, but the quality usually isn't very good," Peterson said. "A professional live recording can be very expensive for the artist and it might take 30 minutes for someone to walk away with a disc. With our app, you can download it 30 seconds after the performance."
During early testing, about 14 percent of audiences purchased live recordings, he said.
Depending on the artist, Set.fm typically takes a 50 percent cut of profits. So far, 285 bands have signed up and recorded shows around the country, Peterson said.
Set.fm, which has its headquarters at the 501 Studio on East Fifth Street, is hiring developers.
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