09/05/2019: UK Music CEO Michael Dugher has called on Small Business and Consumer Minister Kelly Tolhurst to refer PledgeMusic to watchdogs at the Competition and Markets Authority.
His intervention came after one of the firm’s co-founders warned that the music crowdfunding website was on the brink of bankruptcy.
Benji Rodgers said in a letter to artists that the proposed sale of PledgeMusic had been unsuccessful and that the firm would go into bankruptcy.
The disclosure is a shattering blow to many artists who fear they will not receive cash that they are owed by PledgeMusic if it goes into administration.
In a letter (attached) to Ms Tolhurst, Mr Dugher called on Consumer Minister to investigate the firm’s failure and refer the case to the CMA, an organisations whose responsibilities include ensuring markets work well for consumers.
His demand came as the Musicians Union urged musicians who are owed money through the platform to contact them.
In his letter to Ms Tolhurst, Mr Dugher said:
“Many musicians across the UK relied on crowdfunding website PledgeMusic to deliver payments from patrons, to pay for album recordings and costs.
“These artists were already enduring long delays in receiving payments. As a consequence, creators who used PledgeMusic’s services are likely to lose money, if it goes into administration without resolving its outstanding debts. The Musicians’ Union is working with members to advise them.
“Emerging artists often rely on crowdfunding platforms to raise capital to support album recording costs, music video costs and other capital expenditures.
“This is often a crucial step for them to progress through the music talent pipeline. Musicians should be able to trust crowdfunding platforms to fulfil their obligation of delivering money pledged by fans and supporters.
“I would therefore ask that you refer PledgeMusic to the CMA to ensure that this matter is properly investigated.”
Read Michael Dugher's letter to Consumers Minister Kelly Tolhurst here.
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