Music Start Ups Break Records in March

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A record number of music companies were formed in March 2012, according to new research by Duport Associates Ltd.

At a time when we hear a lot of negative feedback from the big players in the music industry, it’s great to hear how new companies are finding positive ways to turn their love of music into a good business opportunity

Whilst big companies in the music industries struggle with the new challenges brought by the internet, new start-ups see opportunities according to data from Companies House. A record 99 new companies were formed in March 2012 using the term “music”, and another all-time high of 53 company formations were made including the word “studios”.

“At a time when we hear a lot of negative feedback from the big players in the music industry, it’s great to hear how new companies are finding positive ways to turn their love of music into a goodbusiness opportunity,” stated Duport Associates’ Managing Director Peter Valaitis.

“As well as production, studio space is an area in which entrepreneurs can flourish,” he added. “Lots of people are turning unused buildings into useful space and making a good living from otherwise wasted assets.”

The rise of the internet has caused big problems for the music industry, with copyright infringement made much simpler through file-sharing. But alongside these issues, the internet has also given musicians, independent labels and production studios the opportunity to find new audiences and create interest in bands without the need for the advertising and marketing budgets of a big studio.

The new interest in forming music-related companies could reflect the difference between the attitudes of big businesses and small entrepreneurs.

Whilst the media industry is continually asking for new and more robust laws regarding copyright and file sharing, smaller industries tend to embrace the internet and its opportunities to level the playing field for less well-known and well backed bands.

The data collated by formations agents Duport Associates using the official register from Companies House, shows that the number of “music” companies formed in March has not been this high since March 2003.

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Peter Valaitis