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From Artist to CEO - New Biz Model for Talent

A new business model is sprouting for ARTISTS, actors, writers, etc.

Hollywood talent agencies are quickly moving away from their old business model and embracing the ways of Silicon Valley. The agencies, such as United Talent Agency and William Morris, are becoming more like venture capitalists as they move toward an ownership model and further away from the representation model, said Chris Pappas, head of digital media practice for United Talent Agency.

"We find the right artist (and) we create a company around his/her intellectual property," he said. As for the artist, "they'll have a substantial ownership position," he added. "The idea is that they'll be the owner of that content and not just workers for hire."

Funny or Die, WeMix.com

Will Farrell appears to be proving (though it's still early) that he can bypass talent agencies and own a big chunk of his creation. Last year, he co-founded Funny or Die, and received funding from Sequoia Capital. Chaka, who manages rap artist Ludacris, was at the OnHollywood event last week to be on a panel but to also find investors for his startup - WeMix.com - a social network for musicians.

60Frames

Last July, 60Frames, a company incubated inside UTA and ad network startup SpotRunner raised $3.5 million from investors. (See paidContent.org)

60Frames is an online content and video producer. In March, talent agency William Morris announced that it's partnered with Silicon Valley VCs Accel Partners and Venrock to fund digital media properties in Southern California.

READ MORE at: AlwaysOn.com


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