UK Music CEO Michael Dugher has called on the government to refer PledgeMusic to the Competition and Markets Authority (CMA).
It follows the apology by the D2C platform’s co-founder Benji Rogers, who confirmed that a buyer had not been found and that PledgeMusic was heading into administration.
Artists who have used PledgeMusic have not been paid money owed from funding campaigns. The latest developments prompted a further outcry on social media.
The Musicians’ Union urged artists who are owed money through the platform to contact them.
In a letter to Small Business and Consumer Minister Kelly Tolhurst, UK Music CEO Michael Dugher called for her to refer PledgeMusic to the watchdog.
“Many musicians across the UK relied on crowd-funding website PledgeMusic to deliver payments from patrons, to pay for album recordings and costs,” said Dugher. “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 crowd-funding 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 crowd-funding platforms to fulfill 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.”
FRP Advisory has been in discussions with the company but has yet to confirm it is the administrator.