Amsterdam-based online concert broadcaster closes down

DutchAmsterdam.nl — Amsterdam-based online concert broadcaster Fabchannel.com is closing down.

Started nine years ago, Fabchannel webcasts shows from Paradiso and Melkweg — the best two music venues in Amsterdam. It boasts an archive of more than 1000 exclusive live concerts filmed at the clubs.

Using four camera angles and high-quality sound recording equipment the HD quality full-concert broadcasts provided a great alternative to amateur-recorded YouTube clips.

Fabchannel.com’s revenue came from online advertising. However, even though the company offered revenue sharing — on top of the promotional value in offering bands a worldwide audience — record companies not only failed to provide worldwide broadcast rights, but kept demanding larger shares of income as well.

“I no longer believe that our approach is viable,” Founder-Director Justin Kniest says. “You have to have big names to attract a big audience. Without an audience you don’t sell advertising.”

Only last February the company did announce a cooperation agreement with Universal Music Netherlands, which would allow Fabchannel.com to offer free, ad-supported webcasts of Universal Music artists such as Richard Bona, Ian Brown, Chamillionaire, DJ Shadow, Feist, Amy McDonald, Method Man, Kate Nash, Roni Size, Sigur Rós, Willie Nelson and more.

As part of the deal, Universal received a share of ad revenue, as well as access to Fabchannel’s recordings of its artists, which Universal Music Group could stream and sell on its own sites. Thus Universal shared in Fabchannel’s revenue, while Fabchannel received a share of Universal’s revenue from the sale of video content around the world.

After the Universal deal was signed, Kniest expected other record companies would follow suit. They did not — instead holding out for larger shares of FabChannel’s ad income. That income has not grown much for lack of a growing audience. In addition the economic crisis has led to a downturn in online advertising. Kniest believes the next few years will be getting even more difficult as companies are forced to decrease their spendings on advertising and sponsoring.

In a post at the company’s website, he explains:

In 2007 we managed to attract investors that believed in our businessmodel. In 2008 we landed a worldwide recording and distribution contract with Universal Music Group. It showed that the model worked. It would not be long before all the other labels would see the light and start a similar partnership with us, we thought ……….

But they did not. Although a lot of labels are facing serious problems these days, they seem to be incapable of starting meaningful partnerships with more than a few worldwide players. You would think that when the end nears they would come out of their shells and start creating new formats and platforms themselves and with others. But the opposite seems to be true. Their focus is getting even shorter and cash is the only king. That really did it for me. After 9 years of trying we still do not have the fuel to keep our service alive: rights to record the majority of concerts in our venues.

As we do not bring in enough money to keep our service going we had to make very hard decisions. Of course we wanted to keep the archive online for you, but the cost of running the service is just too high and our money runs out. Even without us around, the money we have to pay collective rights agencies for showing the archive is way too much.

Says Kniest in Amsterdam news daily Het Parool, “In recent weeks we realized we had become a jet engine without kerosine. In order to fend off bankruptcy we are therefore liquidating the venture.”

The company’s 30 employees will get paid through the end of April, but the website is closing down on Friday, March 13.

Original content © Copyright DutchAmsterdam.nl
    Do not republish or repost.

Share | Email | Print | Bookmark

Read More About Amsterdam

Amsterdam draws up new rules for growing fleet of pleasure crafts
Reprieve for some Amsterdam brothels and coffeeshops

More About This Topic

Subscribe (free) for more Amsterdam news and info

DutchAmsterdam.nl's Twitter Stream
Get the goods on Amsterdam via email
Get Amsterdam News & Information via 'RSS' News Readers
Subscribe to this topic only: About Amsterdam, Amsterdam News

What else would you like to know about Amsterdam?