Pitch Teaser


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  1. 1. Contact Us for More Details at:<br /> <br />The Pitch(Teaser)<br />
  2. 2. The Next Market Leader of Independent Hip Hop Music<br />2<br />Company Overview<br /> is more than an online Mp3 store and we are certainly not a record company; we will be the destination that independent Hip Hop and Rap artists will come to build their professional music careers. We are a Web 2.0 company that virtualizes key services of major record labels, like marketing and distribution, in a single technical platform.<br />Whether our customer wants to pitch to Warner Music or stay the voice of the underground forever, we will be the medium by which Hip Hop artists reach their listeners from around the world, and still maintain control of their music as if they were still only pushing CDs out “Tha Trunk” of a car. <br />
  3. 3. Problem StatementImprove Success through Ease-of-Use and Access and Lower Risk to Develop New Artists<br />Independent Artists<br />Record Labels<br />Many independent artists have developed a strong brand name and following in their local market by leveraging their local distribution networks, also known as Selling Out “Tha Trunk” of their cars, which can net anywhere from thousands to millions of dollars in revenue for a single artist<br />These artists currently have access to digital distribution channels, most of which is through iTunes; however, it is extremely difficult to breakthrough and reach your first listeners when competing against the likes of Taylor Swift and Lil Wayne and they do not see equal success online<br />While record companies have taken less risk , due to the dramatic market shift in demand from CDs to Mp3s, independent Hip Hop artists have aggressively sought success through independent means. MySpace alone has over 5 Million registered Hip Hop, Rap and Reggaeton artists(Hip Hop and Rap are the two largest genres on MySpace)<br />Today, major labels are attempting to regain their original ability to attract new talent; however, they still need low-cost solutions to determine the success of new Hip Hop artists and lower the risk of new investment in new talented Hip Hop artists<br />3<br />Company Overview<br />Due to digital disruption, which has caused a 31% drop in revenue for the US Music Industry from 2004-2008, Independent Hip Hop artists are having a difficult time breaking into the major record labels and major labels are tentative to make large upfront investments for unproven Independent Hip Hop artists<br />
  4. 4. Services are the SolutionVirtualize Services Traditionally Provided by Record Companies<br />4<br />Company Overview<br />Record Company Services<br /> Virtual Services<br /><ul><li>Global Distribution (Retail/Digital)
  5. 5. Royalties and Revenue
  6. 6. A&R Department
  7. 7. Adverting Budget
  8. 8. Marketing Analytics
  9. 9. Access to Focus Groups or Listening Panels</li></ul>Other Services<br /><ul><li>Tour Development & Representation
  10. 10. Video Services (Access through Affiliates)
  11. 11. Access to Producers (Access Only)
  12. 12. Global Distribution (Digital Only)
  13. 13. Download Revenue Sharing
  14. 14. Virtual A&R Services
  15. 15. Variable Cost Advertising
  16. 16. Digital Marketing Analytics
  17. 17. Listener Feedback through Web 2.0 Technology</li></ul>Other and Non Virtual Services<br /><ul><li>Tour Development and Representation
  18. 18. Video Services (Access through Affiliates Ads)
  19. 19. Beat Exchange (Future Service Extension)</li></ul>Often Costly, Slow and Listener Feedback is delayed<br />Low Cost, Fast and Listener Feedback is integrated and immediate<br />Drake leveraged Web 2.0 platforms like Blogs and Myspace to generate a fan base by providing his music for free as a marketing tool. After building up demand he then distributed his album through Tunecore and sold over 300,000 singles. Shortly after, Universal signed him to a +$1 Million deal and then followed up by inking a deal with Tunecore to sell services, like mastering and album art development, through their platform. Mark Rosoff, analyst for calls his story “instructive”<br />A Case Study:Drake<br />
  20. 20. Target Customer Analysis<br />5<br />Company Overview<br />The <br />Listener<br />The <br />Artist<br />The <br />A&R<br />
  21. 21. Historical Data and Trends<br />6<br />Industry Analysis<br />“In the past, the E&M industry was characterized by a handful of generic, tried-and-trusted revenue models that had proved their worth in each segment. In the industry landscape of 2013, the models for generating revenues will be more diverse, more targeted, and developed on a bespoke basis to suit specific user experiences, customer segments and geographical markets. “<br />“This shift will reflect several the themes highlighted in the Outlook – including the advance of consumers’ “digital” behaviors, and the emergence of new ad-funded business models underpinned by more targeted, relevant and personalized messages tailored to the individual recipient. A revenue model that works with one particular type of consumer, one particular form of content, or one particular national marketplace may not work with others. “<br />-PWC 2008-2013 Entertainment and Media Forecast<br />
  22. 22. SWOT Analysis<br />7<br />Strategic Value<br />
  23. 23. Exit Strategy<br />8<br />Investment Opportunity<br />3-5 Year Expected Buyout: <br />Contact us for this Info and other Financials Information<br />If successful, we will have developed a platform that effectively tests the viability of independent and innovative hip hop artists and grows the digital music market by increasing access to independent hip hop artists and new Hip Hop music across the USA.<br />
  24. 24. Project Timeline and Status<br />9<br />
  25. 25. Contact Information<br />For More Information Please Contact Us At:<br /><br />10<br />