2. Current Status of Music Industry
Transformation in the music / entertainment community due to the
advancement of technology.
To unlock the enormous potential of digital music, there is also a need to
address piracy both in P2P networks and other forms. Education and
legislation are both needed to prevent piracy and the effects.
Factors impacting the current business models
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3. Past
The "old" recorded music distribution system was simple:
• label to distributor,
• distributor to record store,
• record store to consumer,
Effects on music industry – Tower Records
Effects on movie industry - Blockbuster
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5. Present
The music industry is desperately trying to maintain its multi-tiered
distribution model, and the associated revenue / cost structures.
• These revenue / cost structures no longer pertain to distribution of digital
objects and typically provide compensation to the artist in the 6% or less
range per song sold.
• The current model also perpetuates outdated charges and fees and passes
these irrelevant costs on to the artist i.e. 10% breakage charges.
• The New 360 deal current in the online environment introduced by the
Record Labels.
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7. Digital Music – Summary of Statistics
1000% - the increase in the value of the digital music market 2004 – 2010
13 million – tracks licensed by record companies to digital music services
6% growth of global digital music in 2010
29% - the proportion of record companies global revenues from digital
channels
€240 billion – estimated cumulative lost retail revenues to the European
creative industries due to piracy 2008 – 2015
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8. Piracy and the Effects
Figures indicate piracy is hitting investment in New Music on a global scale,
with the sales volume of best selling debut titles falling precipitously in
recent years.
Large numbers of jobs are disappearing, approx of 12M and many more
under threat.
Great new legitimate music offerings exist all over the world, but they will
not survive if the market continues to be massively rigged by piracy.
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9. Future
The future of the music industry that was reported by the IFPI Report 2011
is a fragmented industry that unless dealt with will continue on a slippery
slope downward.
The creative arts will no longer have a platform to distribute their work.
Lack of tools and legislation to prevent piracy. If left to continue it will erode
the industry.
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10. Attatunes Online Distribution
ATTATUNES
will focus on aggregating musicians, singers & songwriters in an
online, social networking domain to provide a simple, easy to use set of tools
and services enabling any artist to quickly establish a direct artist to
consumer online presence and relationship
will shift the focus of the distribution model away from the publisher/ label
and it will reside with the artist.
will establish an online domain that will support direct artist to consumer
sales.
• The key is the Copyright which will remain in the hands of the artist.
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11. Attatunes Focus
Taking advantage of the move away from the brick and mortar music stores
to online distribution.
Seize upon the consumer traffic for the estimated increase in digital music
sales that was US$4.6 Billion Dollars in 2011
Place the artist in a better financial position by allowing them to keep all
their sales and copyrights.
Advocate for preventing digital piracy by educating the public.
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12. How will Attatunes do it?
A Content management database system that will enable artists to upload
and manage their content online.
E-commerce capabilities that will enable fans to purchase a members
products & services online i.e. “direct to the consumer” .
Customizable home pages for musicians - professionals with the ability to
add video, audio, photo and digital content, blog, wiki’s, forums, events and
an online store.
Homepages for “fans” with the ability to “link” fans to a musician’s home
page or other fans.
The ability to post sections of songs for review by fans & casual users.
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