On Friday 13 January 2012 we were on stage at one of the biggest European Music Conferences in Europe; Eurosonic Noorderslag in Groningen, The Netherlands. We hosted an event; a Business Model Interrogation with bands and music tech start-ups. We were truly inspired by their music Business Models. I would like to share it with you. I hope you will be inspired too!

1. Eurosonic-­‐Noorderslag
2012
Groningen
The
Netherlands
Business
Model
Explorer
THE
INTERACTIVE
INTERROGATION
–
January
13,
2012

2. 6
NOMINEES

3. 2
WINNERS

4. 1
COMPANY

5. 1
ARTIST
/
BAND

6. 1
GRAPHIC
JOURNEY

8. Don’t
worry.
We
also
have
the
full
story,
right
here.

9. The
awards
go
to
the
best
interactive
concept
or
campaign:
1
for
an
artist/band
1
for
a
company

10. Before
we
take
a
look
@
business
models
of
the
nominees…

11. Let
us
introduce…

12. Welcome

14. Who
are
they?!

15. They
are
the
band
that
did
everything
wrong.

16. They
found
out
that
it’s
hard
to
break
into
the
Music
Business.

17. It
is
a
big
challenge
for
every…

18. ARTIST

19. And…

20. COMPANY

21. To
really
get
to
know
their
customers…

22. So,
how
about
you?

23. Do
you
know
your
fans?

25. Do
you
REALLY
know
who
they
are?

27. And
what
about
your…

28. Business
Model?

29. Everybody
has
one.

30. Let
us
look
at
the
business
models
of
the
nominees…

31. …using
the
Business
Model
Canvas.

32. The Business Model Canvas
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS
COST STRUCTURE REVENUE STREAMS
(you
can
read
everything
about
the
canvas
on
www.businessmodelgenera:on.com)

33. We
asked
them…

34. 3
Questions

35. 1.
Why
did
you
start?

36. 2.
What
is
the
X-­‐Factor
in
your
model?

37. 3.
Show
me
the
money!

38. Nominees
Artist
Awards

39. 1
The
Black
Atlantic

41. “We
fully
financed
the
recording
of
our
album
by
pre-­‐selling
music
packages
tailored
to
our
audience
on
our
own
website.”

42. Why?
We
wanted
control
over
our
music
so
we
can
make
it
a
free
download.
We
needed
cash
for
that,
so
we
did
pre-­‐sales.

43. X-­‐Factor?
We
manage
to
be
in
control
by
handling
our
own
pre-­‐
sales.

44. Show
me
the
Money?
We
already
have
the
cash
before
we
spend
it.
We
combine
free
with
paid.

45. PRE-­‐

46. Venues
&
Music
Performing
Free
Music
Digital
Fes:vals
Fans
License
Pre-­‐
order
Composing
On
Stage
Company
Music
Record
Marke:ng
&
Company
Sales
Project
Publisher
Network
Website
Companies
/
Composi:ons
Brands
Manager
Talent
Peer-­‐2-­‐peer
Marke:ng
&
Tour
Music
Sales
E-­‐mail
adresses
Sync
Fees
Distribu:on

47. 2
Only
Seven
Left

49. “Get
personal
with
your
fans
and
let
them
help
you
find
your
new
lead
singer!”

50. Why?
Our
Lead
Singer
left.
We
turned
a
disaster
into
an
opportunity.

51. X-­‐Factor?
A
personal
relationship
with
our
fans
got
even
more
intimate
–
and
we
know
they
like
our
new
singer!

52. Show
me
the
Money?
The
attention
we
received
landed
us
a
commercial
deal
and
a
TV
appearance.

54. Radio
Personal
&
Music
Performing
Music
we
love
Promotor
Digital
Fans
You
Tube
Composing
Merchandise
On
Stage
Collec:ng
Marke:ng
&
Socie:es
Sales
Publisher
Time
Concerts
Exclusive
Content
Sponsors
Manager
Talent
Fanmail
Audio
Marke:ng
&
Sponsorship
Music
Sales
Merchandise
Produc:on
Distribu:on
Fees

55. 3
Lorrainville

57. “It
all
started
just
for
fun…
A
harmless
facebook
game
to
design
an
album
cover.
But
people
were
so
impressed
that
they
got
inspired
and
created
a
real
album
together.
With
over
80
participants…”

58. Why?
It
started
as
a
joke,
but
then
it
got
serious.
Let’s
enjoy
the
ride
together!

59. X-­‐Factor?
We
don’t
do
anything
alone.

60. Show
me
the
Money?
We
don’t
care
about
cash
(a
lot).

61. S
FR IEND

62. Booking
Music
Performing
Music
Digital
Agency
Fans
Sales
On
Stage
Record
Marke:ng
Company
Project
Network
Website
Volunteers
Par:cipa:on
Volunteers
Social
Media
&
Talent
Online
music
Services
Marke:ng
&
Services
of
Merchandise
Music
Sales
Distribu:on
Volunteers

63. Nominees
Company
Awards

64. 1
Shuffler.fm

66. The
easiest
way
to
discover
new
music.
One
curated
blog
at
a
time.

67. Why?
Online
music
services
look
like
spreadsheets.
But
recommendations
are
based
on
emotions.

68. X-­‐Factor?
We
know
1000’s
of
Bloggers.
They
know
the
music
you
want
to
hear.

69. Show
me
the
Money?
We
create
branded
channels
and
broker
the
advertising.

71. Audio
Magazine
Digital,
on
Music
Ad
Network
Developing
app
made
by
music
blogs
Blogs
Fans
Blog
Award
Conferences
Show
Syndica:on
Connec:ng
Bloggers
/
Marke:ng
Partners
blogs
to
Brands
tastemakers
Developers
Blogs
Connec:ng
with
blogs
Ar:sts
Blog
Network
Designers
Syndica:on
Partner
Marke:ng
&
Adver:sing
&
Pay
per
Development
Brockerage
ads
Travel
Paid
Discovery
transac:on

72. 2
Repudo

74. “What
if
virtual
goods
could
be
scarce,
just
like
famous
artworks?”

75. Why?
We
wanted
to
create
a
digital
market
for
scarce
virtual
goods.
We
think
it
will
create
extra
value.

76. X-­‐Factor?
Nobody
else
is
doing
this.
People
love
to
have
unique
objects.
We
make
that
possible
online.

77. Show
me
the
Money?
We
make
unique
deals.

79. Fes:val
Loca:on
Based
Smartphone
Developing
app
Organizers
App
User
Sales
Digital,
app
Record
Labels
Marke:ng
Developers
Mobile
Phone
App
Brands
Social
Designers
Networks
Development
Personnel
Free
Fees

80. 3
Mobile
Roadie

82. “Every
artist
can
have
a
beautiful,
mobile
App.
At
an
affordable
price.”

83. Why?
We
saw
how
hard
and
expensive
it
is
to
make
a
mobile
app.
We
change
that.

84. X-­‐Factor?
It
is
very
easy
to
customize
your
app,
it
has
everything
you
need,
and
it
is
cheaper
than
making
an
album.

85. Show
me
the
Money?
A
fixed
introduction
fee,
plus
a
monthly
subscription,
and
a
percentage
of
in-­‐app
sales.

87. Fes:val
Music
Developing
app
Music
App
Organizers
Fans
Sales
Digital,
app
Record
Labels
Marke:ng
Developers
Mobile
Phone
Ar:sts
(and
Music
App
their
labels)
Social
iTunes
Designers
Networks
iTunes
Affiliate
Development
Personnel
Free
Sign
up
Fee
fees

88. Our
Conclusions…

89. 1
Everybody
has
a
business
model.

90. 2
Know
your
X-­‐factor!

91. The
crowd
decides
3
who’s
cool.
Not
the
record
company.

92. 4
No
business
plans.
Just
action!

93. 5
It’s
all
about
the
artist-­‐fan
relationship.

94. What
will
you
do
differently
tomorrow
with
this
knowledge?

96. But…
wait
a
minute!
Who
won?!

97. In
the
following
Award
Session,
the
Jury
selected
an
artist/band
and
a
company

98. Winner
Artist
Award:
Only
Seven
Left

99. Winner
Company
Award:
Mobile
Roadie

100. Read
more
about
this
on
www.businessmodelsinc.com/blog