atans1

Bowie: Pioneer on internet and in finance

In Financial competency, Internet on 14/01/2016 at 4:22 am

David Bowie was also groundbreaking in his use of technology, not least his internet service, BowieNet, which launched in September 1998.

In a time before Instagram, YouTube, Twitter or even MySpace, most artists provided little if any online material to their followers.

But Bowie’s platform not only offered a wide variety of exclusive content, but also several ways to interact with the singer himself.

“In my view, BowieNet had to be the most groundbreaking reachout to fans that I have ever seen any artist ever do,” Craig Carrington, one of its users, says.

“He just had the attitude that if he was going to do it, he was going to do it right.”

BowieNet also operated as a full internet service provider (ISP) in the US and UK, competing with AOL, Claranet and others.

http://www.bbc.com/news/technology-35279234

And NYT’s dealbook trports

HOW DAVID BOWIE INSPIRED CHANGES ON WALL STREETDavid Bowie was known for his ability to reinvent himself, but he also inspired a pocket of Wall Street that tries to create money from weird things like billboard rental income and film libraries, Liz Moyer writes in DealBook.

In 1997, Mr. Bowie bundled up nearly 300 of his existing recordings and copyrights into a $55 million security that paid the buyer, Prudential Insurance Company of America, an annual rate of 7.9 percent over 10 years. It was backed by income from royalties, record sales and the licensing of songs.

The Bowie bonds were among the first in a wave of esoteric asset-backed securities deals based on intellectual property. The buyers in these deals tend to be specialized hedge funds or big institutions. Individual investors never got their hands on a Bowie bond because Prudential never sold any of its stake.

It was a good deal for Mr. Bowie at the time. He received upfront cash without having to give up ownership of his songs.

Originally rated A3 by Moody’s Investors Service, the bonds were later downgraded to just above junk status as Internet file-sharing cut into income from album sales.

But others followed in his steps with similar deals. James Brown and Rod Stewart made deals and DreamWorks SKG entered a $1 billion deal involving its film catalog.

Deals backed by unusual assets now make up about a tenth of the asset-backed security market, appealing to investors who want higher yields and are willing to take on more risk.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: