It’s hard to get excited about an unproven, untested start-up which declares that it will “Make music free for the people, prosecute no-one, pay the artists full price, share the love.” After all, the 2000s were full of unsuccessful start-ups that striven to do this. It even took Pandora some 10 years to break a profit, with it being the first Web 2.0 start-up to do so. Nonetheless, Guvera is seemingly making trend followers antsy to see if this start-up’s business model have struck gold.
Guvera claims that it will offer free downloads, ranging from tracks hailing from some top-selling labels. This advertising-revenue-generated company seeks to offer free downloads to users without force-feeding advertisements to users. Guvera announced that it already has deals with Universal Music Group, EMI and other labels, and that the company is discussing licensing deals with Sony, Warner Music, other music labels, television studios, and movie studios.
Guvera will allow advertisers to design custom branded channels, selecting a demographic that the advertisers seeks to attract. Each time a user in that demographic selects the particular download, the advertisers will pay a minimum fee to Guvera, which will then be shared between Guvera and rights owners. Already attracting the appeal of big name advertisers, current advertisers include Johnson & Johnson and McDonalds.
Looking to attract p2p users, Guvera is now open to a small test market. It’s rumored to open to US testers before March 2010. So far, Guvera CEO Claes Loberg announced that the company has secured $10 million in financing in 2009, and is expecting to collect $20 million from AMMA Private Investment. It’s only a matter of time to see if Guvera will be music’s bane or boon.