HowtoDesignTest
andBuildBusinessModels
andValuePropositions
“I	
  just	
  want	
  to	
  sing	
  and	
  
perform.”	
  
?So how does one come
up with successful
business models?
How does the music
industry create,
deliver and capture
value?	
  
BUSINESS	
  MODEL	
  	
  
CANVAS	
  
THE	
  
Business
Model Canvas
to describe, challenge,
design, and invent
business models more
systematically
74
!innovative business models may
unlock new opportunities or enable
things that were just not possible
with the traditional...
OFFER
DISTRIBUTION
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEY
ACTIVITIES
PARTNER
...
building
block
building
block
building
block
building
block
building
block
building
block
building
block
building
block
bu...
The	
  
Music	
  
Industry	
  
The	
  
Music	
  
Industry	
  
A	
  dynamic	
  market	
  
a	
  global	
  industry	
  	
  
characterized	
  by	
  
many	
  players	
  and	
  
fierce	
  com...
!
Companies are quick to adopt
technologies that support their
business model but are slow to
adopt technologies that disr...
iTunes
The “traditional” music
industry gave us the choice
of buying singles, albums or
compilations. The digital
service ...
Change in 10 years
2007
2008
2006
2006
2006
2013
If something is going
to happen in the end,
you may as well do it
in the beginning.
- Henry Kissinger
“
Consumer trends, s...
The total number of streams (UK) in 2013 (3.7bn) is
more than the total number of singles sold in 60
years.
26% of all entertainment revenue is now access to
content
Millions of consumers are showing
entertainment industries the w...
BrandAmp	
  study,	
  Millward	
  Brown,	
  2007	
  
“Music is something most people love,
that no one dislikes and that t...
Who	
  is	
  my	
  customer?	
  
What	
  does	
  he	
  or	
  she	
  wants?	
  
What	
  is	
  he	
  or	
  she	
  willing	
  to	
  pay	
  for?	
  
Different	
  needs	
  
CUSTOMER SEGMENTS
images by JAM
Customer	
  in	
  charge	
  
VALUE PROPOSITIONS
images by JAM
Firms	
  that	
  record,	
  
produce,	
  publish,	
  
distribute,	
  and	
  market	
  
music.	
  
Shift	
  from	
  ownership	
  
to	
  access	
  
?what is your main target
customer trying to get done?
CUSTOMER RELATIONSHIPS
images by JAM
GoalsofCustomerRelationshipManagement
1)Identify,attractandwinnewcustomers
2)Retainexistingcustomers
3)Re-invigoraterelati...
1.Identify,attractandwinnewfansandsupporters
Mostindependentartistsdon’thavemoneytospendon
‘push’advertisingorPRtoreachama...
2.Successfullyretainexistingfansandsupporters
Onsocialmedia:Sometimesit’simportanttoremindyourself
whyyouaregrowingafanbas...
Withmailinglists:Mailinglistsareanotherkeytoolfor
retainingfans,butonlyifyouusethem inasmartway.
Lazymail-outscontainingas...
Alwaysbecriticalofthecommunicationyousend.
Ifitdoesn’tgenuinelyinterestorexciteyou,whywould
anyoneelsecare?
Youdon’tbuildr...
Also,youshouldbeabletopersonallynameyourbiggest
fans.
Whoarethepeoplethatengagewithyouthemoston
Facebook?
Whoarethepeoplet...
Alwaysbecriticalofthecommunicationyousend.
Ifitdoesn’tgenuinelyinterestorexciteyou,whywould
anyoneelsecare?
Youdon’tbuildr...
3.Reinvigoraterelationshipswithformerfansandsupporters
MakefulluseoftheanalyticsprovidedtoyoubyFacebook
andYouTube.
Ifyoud...
Whatareyourmostengaging(basedon%ofvideowatched)
videosonYouTube?
Next,notedownthecommonalitiestoidentifywhatan
engagingpos...
Bonustip:Getorganised.
CreateabasicExceldatabase,tocollectandmanageyour
relationships.Startwithaseparatetabfor:
Artists
Bl...
Don’tbeafraidtofollowup.Ifsomeonereallyhasnointeresttheywilltellyouso.
Don’tassumeanon-replyisano;itisoftenjustasigntheyar...
RECURRING	
  
REVENUES
Is	
  every	
  sales	
  a	
  new	
  effort	
  or	
  will	
  it	
  result	
  in	
  
follow-­‐up	
  re...
CHANNELS
images by JAM
Channel
1.Awareness
2.Evaluation-Howdowehelpcustomersevaluate
ourvalueproposition
3.Purchase-Howdoweallowcustomerstopurcha...
REVENUE STREAMS
images by JAM
44SONGWRITERANDCOMPOSERREVENUESTREAMS
1.PublisherAdvance
Bulkpaymenttosongwriter/composeraspartofapublishingdeal.
Paidtoso...
5.StreamingMechanicalRoyalties
Revenuegeneratedwhenyoursongsarestreamedonon-demandservices
(Rhapsody,Spotify,Rdio).Paidtop...
9.LyricDisplay
Revenuegeneratedbythelicenseddisplayofsonglyrics.
Onlinelyricsitespaypublishers,whichthenpay
songwriter/com...
PERFORMERANDRECORDINGARTISTREVENUE
13.RecordLabelAdvance
Paidtoartistaspartofsigningadeal.
14.RecordLabelSupport
Moneyfrom...
18.InteractiveServicePayments
Revenuegeneratedwhenyourmusicisstreamedonon-demandservices
(Rhapsody,Spotify,Rdio).Paidtoper...
PERFORMERSESSIONMUSICIANREVENUE
26.SalaryasMemberofOrchestraorEnsemble
Incomeearnedasasalariedmemberofanorchestra,bandoren...
KNOWLEDGEOFCRAFT:TEACHINGANDPRODUCING
31.MusicTeacher
Revenuegeneratedfrom teachingyourmusicalcraft.
32.Producer
Paymentfo...
BRAND-RELATEDREVENUE
40.Acting
PaymentsforappearancesinTV,commercials,movies.
FAN,CORPORATEANDFOUNDATIONFUNDING
41.FanFund...
What	
  do	
  customers	
  
want	
  (tomorrow)?	
  
Spotify	
  
Spotify	
  aggregates	
  content	
  
from	
  right	
  holders,	
  distributes	
  it	
  
to	
  consumers	
  through	
  the	...
The	
  business	
  model	
  of	
  
Spotify	
  
The	
  Business	
  Model	
  of	
  Spotify	
  
OFFER
DISTRIBUTION
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE...
OFFER
DISTRIBUTION
CHANNELS
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEY
ACTIVITIES
PARTNER
...
www.londonfusion.org.uk
Checkoutanewplatform
comingsoontohelpperformers
createnewrevenuestreams
www.performanceroom.com
@p...
THANK YOU!
BusinessModelGeneration.com
Twitter: @andrelecointe
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)
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Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)

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Andre Lecointe-Gayle - Revenue Streams In The Music Industry (Darker Music Talks August '14)

  1. 1. HowtoDesignTest andBuildBusinessModels andValuePropositions
  2. 2. “I  just  want  to  sing  and   perform.”  
  3. 3. ?So how does one come up with successful business models?
  4. 4. How does the music industry create, deliver and capture value?  
  5. 5. BUSINESS  MODEL     CANVAS   THE  
  6. 6. Business Model Canvas
  7. 7. to describe, challenge, design, and invent business models more systematically
  8. 8. 74
  9. 9. !innovative business models may unlock new opportunities or enable things that were just not possible with the traditional models
  10. 10. OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
  11. 11. building block building block building block building block building block building block building block building block building block building block building block building block
  12. 12. The   Music   Industry   The   Music   Industry  
  13. 13. A  dynamic  market   a  global  industry     characterized  by   many  players  and   fierce  competition  
  14. 14. ! Companies are quick to adopt technologies that support their business model but are slow to adopt technologies that disrupt it. - Clayton M. Christensen,The Innovators Dilemma “
  15. 15. iTunes The “traditional” music industry gave us the choice of buying singles, albums or compilations. The digital service most favoured by the music industry gives us the choice of buying…. singles, albums or compilations. In other words, the music industry has offered consumers a ‘solution’ that is most like the one that went before.
  16. 16. Change in 10 years 2007 2008 2006 2006 2006 2013
  17. 17. If something is going to happen in the end, you may as well do it in the beginning. - Henry Kissinger “ Consumer trends, such as streaming and mobile phones should be seen and acted upon. Too often companies look to the past and say, “Well, that has worked well for us” rather than in to the future and make the changes that may be necessary to their business.
  18. 18. The total number of streams (UK) in 2013 (3.7bn) is more than the total number of singles sold in 60 years.
  19. 19. 26% of all entertainment revenue is now access to content Millions of consumers are showing entertainment industries the way they want to consume their products by signing up with ‘on-demand’ services.
  20. 20. BrandAmp  study,  Millward  Brown,  2007   “Music is something most people love, that no one dislikes and that touches everyone throughout their lives” The  role  of  music  in  peoples’  lives  
  21. 21. Who  is  my  customer?  
  22. 22. What  does  he  or  she  wants?  
  23. 23. What  is  he  or  she  willing  to  pay  for?  
  24. 24. Different  needs  
  25. 25. CUSTOMER SEGMENTS images by JAM
  26. 26. Customer  in  charge  
  27. 27. VALUE PROPOSITIONS images by JAM
  28. 28. Firms  that  record,   produce,  publish,   distribute,  and  market   music.  
  29. 29. Shift  from  ownership   to  access  
  30. 30. ?what is your main target customer trying to get done?
  31. 31. CUSTOMER RELATIONSHIPS images by JAM
  32. 32. GoalsofCustomerRelationshipManagement 1)Identify,attractandwinnewcustomers 2)Retainexistingcustomers 3)Re-invigoraterelationshipswithformercustomers Itdoesn’ttakeageniustorealisethereareclearparallels betweenthevalueofCRMforabrandorbusinessand CRMCRMforabandorartist. Inordertohaveasuccessfulmusiccareer(“business”) youneedtohavefans(“customers”). Andthosefanswon’tcomeunlessyouworkhardforit.
  33. 33. 1.Identify,attractandwinnewfansandsupporters Mostindependentartistsdon’thavemoneytospendon ‘push’advertisingorPRtoreachamassaudience. Yourbestchanceofsuccessliesin‘pull’marketingwhere yousupplyyourfanswithcompellingcontentandthey promoteyoutotheirnetworks. YYourultimateaudienceisnotyour‘Friends;’ it’sthe‘Friendsofyourfriends.’ Ifyoucanburstoutofyournetworkintoeachoftheirs, yourpotentialaudiencewillsuddenlyrocket. Soencourageandincentivisethem toshareyourposts.
  34. 34. 2.Successfullyretainexistingfansandsupporters Onsocialmedia:Sometimesit’simportanttoremindyourself whyyouaregrowingafanbaseonFacebookorTwitter. Manybandsseem tospendalltheirwakinghourscollecting new‘Likes’and‘Followers’butneverinteractwithanyof them. FFacebookusesasystem calledEdgeranktoprioritisethe newsinyourfeed.Ifyoudon’tinteractwithyoufansyou’ll becomeinvisibleveryquickly. Sowhenanew‘Like’or‘Follower’arrives,youhavework todo. Thisisimportant:socialmediaquantityshouldalwaysgo handinhandwithquality. WithoWithoutengagementthose‘Likes’quicklybecome meaningless.
  35. 35. Withmailinglists:Mailinglistsareanotherkeytoolfor retainingfans,butonlyifyouusethem inasmartway. Lazymail-outscontainingasummaryofoldnewsare pointless. Setrulesforyourmail-outs: “IwillonlyevercontactfanswhenIcanrewardthem, oorofferthem somethingexclusive.” “IwillneverjustrepeatnewsI’vepostedonFacebook.” Tip:ThetoolFanReachhasmadeitveryeasyforemerging artiststogrowtheirfanbasethroughnewsletters.
  36. 36. Alwaysbecriticalofthecommunicationyousend. Ifitdoesn’tgenuinelyinterestorexciteyou,whywould anyoneelsecare? Youdon’tbuildrelationshipsbyspammingpeople. Finally,don’tforgetto‘Surprise’&‘Delight’yourfans; it’saprovenbrandtactictoretaininterest. HHowaboutyousurprisethenextthreefansthatcontactyou onTwitterwithafreet-shirtorfreeremix?
  37. 37. Also,youshouldbeabletopersonallynameyourbiggest fans. Whoarethepeoplethatengagewithyouthemoston Facebook? Whoarethepeoplethatcometoallofyourshows? Whobuysyourmusic? BByidentifyingtheseadvocatesyoucanstarttocreate tailoredrewardstoencouragecontinuedsupport. Youcouldofferexclusivepreviewstoaselectgroupof Topfans.
  38. 38. Alwaysbecriticalofthecommunicationyousend. Ifitdoesn’tgenuinelyinterestorexciteyou,whywould anyoneelsecare? Youdon’tbuildrelationshipsbyspammingpeople. Finally,don’tforgetto‘Surprise’&‘Delight’yourfans; it’saprovenbrandtactictoretaininterest. HHowaboutyousurprisethenextthreefansthatcontactyou onTwitterwithafreet-shirtorfreeremix?
  39. 39. 3.Reinvigoraterelationshipswithformerfansandsupporters MakefulluseoftheanalyticsprovidedtoyoubyFacebook andYouTube. Ifyoudon’talreadyknow,taketimetofindout (learnmoreaboutFacebookInsightsandYouTubeAnalytics): Findoutwhich10Facebookpostshad: Thegreatest‘Reach’inthepastthreemonths Themost‘EngagedUsers’ Werethe‘Mosttalkedabout’ Thehighestlevelsof‘Virality’
  40. 40. Whatareyourmostengaging(basedon%ofvideowatched) videosonYouTube? Next,notedownthecommonalitiestoidentifywhatan engagingpostlookslike.E.g., PostedonaMondaymorning Personal,warm friendlystyle Containaquestion Includeagoodqualityphoto Containsavideo Onceyouunderstandtherulesofengagementyoucan repeatthetrick,andhopefullywinbacksomeofthepeople whohaveswitchedoffinresponsetoyourlessengaging posts.
  41. 41. Bonustip:Getorganised. CreateabasicExceldatabase,tocollectandmanageyour relationships.Startwithaseparatetabfor: Artists Blogs Labels PPromoters Publishers Radiostations Thenwheneveryoucomeacrossanewcontact,addtheir keydetails:Name,Company,JobTitle,Email,Phone. These3additionaldetailstakethisfrom beingaflatdatabaseintoanactive, usefulCRMtool: When:Datelastcontacted Why:Reasonforlastcontact What:Outcomeoflastcontact Keepingatrackofwhen,whyandwhatensuresyoucantailoryourresponse andfollowupinthemostappropriateway,onlysharinginformationwhichis relevanttothem.
  42. 42. Don’tbeafraidtofollowup.Ifsomeonereallyhasnointeresttheywilltellyouso. Don’tassumeanon-replyisano;itisoftenjustasigntheyarebusyor disorganized.AsabloggerIwelcomereminders “Haveyouhadachancetocheckoutourtrackyet?” Oftenareminderwillbeenoughtoguaranteeyouareview(ifthemusicisgreat). Alittlethoughtandplanningcanreallyhelpimprovetheeffectivenessofyour ffancommunication,sodon’tbeinarushtopromoteuntilyouareready.
  43. 43. RECURRING   REVENUES Is  every  sales  a  new  effort  or  will  it  result  in   follow-­‐up  revenues  and  purchases?  How   evenly  distributed  are  your  revenues   through  the  year?
  44. 44. CHANNELS images by JAM
  45. 45. Channel 1.Awareness 2.Evaluation-Howdowehelpcustomersevaluate ourvalueproposition 3.Purchase-Howdoweallowcustomerstopurchase specificproductsandservices 4.Delivery-Howdowedeliveravaluepropositionto customers 5.Aftersales-Howdoweprovidepostpurchase customersupport
  46. 46. REVENUE STREAMS images by JAM
  47. 47. 44SONGWRITERANDCOMPOSERREVENUESTREAMS 1.PublisherAdvance Bulkpaymenttosongwriter/composeraspartofapublishingdeal. Paidtosongwriter/composerbypublishingcompany. 2.MechanicalRoyalties Royaltiesgeneratedthroughthelicensedreproductionofrecordingsofyour songssongs— eitherphysicalordigital.Paidtosongwriter/composerbypublisher, label,HarryFox,ordigitalaggregatorlikeCDBabyorTunecore. 3.Commissions Typicallyarequestfrom anensemble,presenter,orchestraorotherentityfora composertocreateanoriginalworkforthem. 4.PublicPerformance(PRO)Royalties Revenuegeneratedwhenyoursongsareplayedonradio,TV,inclubsand rerestaurants.Paidtosongwriter/composer/publisherbyASCAP/BMI/SESAC.
  48. 48. 5.StreamingMechanicalRoyalties Revenuegeneratedwhenyoursongsarestreamedonon-demandservices (Rhapsody,Spotify,Rdio).PaidtopublisherbyHarryFoxorothermechanical licensingagent.Publisherthenpayssongwriter/composer. 6.ComposingOriginalWorksforBroadcast Typicallyacommercialrequesttocomposeanoriginaljingle,soundtrack,score, oorothermusicalworkforafilm,TVorcableshow,oranadagency. Paidtosongwriter/composerbyagencyrequestingthework. 7.SynchLicenses Typicallyinvolveslicensinganexistingworkforuseinamovie,documentary, TV,videogames,internet,oracommercial.Paidtosongwriters/composers eitherviapublisherorrecordlabel,orviaadirectlicensingdealwiththe licensee(moviestudio,adagency,etc)ifyouareself-published. 8.8.SheetMusicSales Revenuegeneratedbythesaleorlicensedreproductionofsongs/compositions assheetmusic.Paidtosongwriter/composerbypublisher,ordirectlyfrom purchasersifyouaresellingitonyourwebsiteoratperformances.
  49. 49. 9.LyricDisplay Revenuegeneratedbythelicenseddisplayofsonglyrics. Onlinelyricsitespaypublishers,whichthenpay songwriter/composer. 10.RingtonesRevenue Generatedfrom licensingyoursongs/compositionsforuseasringtones. PPaidtosongwriter/composerviayourpublisher,yourlabelorHarryFox. 11.ASCAPLUSAwardsProgram AwardedbyASCAPtowritermembersofanygenrewhoseperformancesare primarilyinvenuesoutsideofbroadcastmedia. 12.PublisherSettlement Paymentfrom publisherstowritersforlitigationsettlements.
  50. 50. PERFORMERANDRECORDINGARTISTREVENUE 13.RecordLabelAdvance Paidtoartistaspartofsigningadeal. 14.RecordLabelSupport Moneyfrom labelforrecordingortoursupport. 15.RetailSales RRevenuegeneratedfrom sellingphysicalmusicinretailstoresorviamailorder. Paidtoartist/performerbyyourlabel,orserviceslikeCDBabyorBandcamp thathelpmusicianssellphysicalproduct. 16.DigitalSales Revenuegeneratedfrom sellingmusicdigitally/online.Paidtoartist/performer byyourlabel,ordigitalaggregatorslikeCDBabyorTuneCore,ordirectlyfrom fansviaserviceslikeBandcamp. 117.SalesatShows Revenuegeneratedfrom sellingrecordingsofmusicat shows/liveperformances.Paidtoartist/performerdirectlybyfans.
  51. 51. 18.InteractiveServicePayments Revenuegeneratedwhenyourmusicisstreamedonon-demandservices (Rhapsody,Spotify,Rdio).Paidtoperformerbyyourlabel,ordigitalaggregator likeCDBabyorTuneCore. 19.DigitalPerformanceRoyalties Revenuegeneratedwhenyoursoundrecordingsareplayedoninternetradio, SSiriusXM,Pandora.PaidtoperformersbySoundExchange. 20.AARCRoyalties Collectedfordigitalrecordingofyoursongs,foreignprivatecopyinglevies, andforeignrecordrentalroyalties,distributedtoUSartistsbyAARC. 21.NeighboringRightsRoyalties Collectedfortheforeignperformanceofyourrecordings. 22.Film MusiciansSecondaryMarketsFund PPaidtoperformersonrecordingsusedinfilm,TVandothersecondaryusesby theFilm Musicians’SecondaryMarketsFund.
  52. 52. PERFORMERSESSIONMUSICIANREVENUE 26.SalaryasMemberofOrchestraorEnsemble Incomeearnedasasalariedmemberofanorchestra,bandorensemble. 27.Shows/PerformanceFees Revenuegeneratedfrom playinginalivesetting(fornon-salariedplayers). Paidbyconcertpromoter,presenterorvenuetoperformer. 28.SessionMusician28.SessionMusician/SidemanFeesforStudioWork Paymentstostudiomusicians/freelancers/sidemanforworkinrecordingstudio. paidbylabel,producerorartist,dependingonsituation. 29.SessionMusician/SidemanFeesforLiveWork Paymentstostudiomusicians/freelancers/sidemanforworkinalive setting/ontour.Paidbylabel,producerorartist,dependingonsituation. 30.AFM/SAG-AFTRAPayments PPaymentsfrom theAFM/SAG-AFTRAIntellectualPropertyRightsDistribution Fund,whichdistributesrecordingandperformanceroyaltiestonon-featured artists.
  53. 53. KNOWLEDGEOFCRAFT:TEACHINGANDPRODUCING 31.MusicTeacher Revenuegeneratedfrom teachingyourmusicalcraft. 32.Producer Paymentforproducinganotherartists’workinthestudio orinalivesetting.Paidbylabels,featuredartists,studios, presepresenters,orfoundations,dependingonsituation. 33.HonorariaorSpeakersFees Paymentforconductingalecture,workshopormasterclass.Usuallypaidby school,conservatory,orpresentingorganization.
  54. 54. BRAND-RELATEDREVENUE 40.Acting PaymentsforappearancesinTV,commercials,movies. FAN,CORPORATEANDFOUNDATIONFUNDING 41.FanFunding Moneydirectlyfrom fanstosupportorpre-sellanupcoming rerecordingprojectortour(Kickstarter,PledgeMusic,IndieGogo,Patreon). 42.Sponsorship Corporatesupportforatour,orforyourband/ensemble. 43.Grants Foundationorpublicartsgrantstosupportyourwork/projectfrom foundations, stateorfederalagencies. OTHERSOURCESOFREVENUE 44.44.ArtsAdministrator Moneypaidtoyouspecificallyformanagingtheadministrativeaspectsofa groupthatyouareamemberof.
  55. 55. What  do  customers   want  (tomorrow)?  
  56. 56. Spotify  
  57. 57. Spotify  aggregates  content   from  right  holders,  distributes  it   to  consumers  through  the   technical  platform  and   monetizes  both  through  a  free,   ad  funded  service,  and  a   subscription  service.  
  58. 58. The  business  model  of   Spotify  
  59. 59. The  Business  Model  of  Spotify   OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES Access  to   music  via   streaming  and   download   services   Pla@orm   development   and   maintenance   Licensing   agreements   SoGware  and   network   engineers   Rightholders   (labels  and   publishers)   Adver:sers   Internet  +     PC   Ad  fees   Subscrip:on   fees  PC   Subscrip:on   fees  PC  +   mobile   Royal:es  to   rightholders   Salaries   Bandwith  costs   Automated   online   rela:onship   Global  music   fans   Adver:sing   Pla@orm  and   brand   Internet  +   mobile   3rd  party  APIs   Communi:es  
  60. 60. OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES Mass  market   Hits  and   wannabee  hits   Tours  and   concerts   Huge  sales   from  a  few   ar:sts’  albums   Merchandising   Marke:ng  &   promo:on   Detec:ng  &   building  talent   Por@olio  of  star   ar:sts   Copyrighted   content   Distribu:on   channels   Manufacturers   Marke:ng  &   promo:on   Subsidizing   unsuccessful   ar:sts   Royalty   payments   TV   Radio   Retailers   Digital  
  61. 61. www.londonfusion.org.uk Checkoutanewplatform comingsoontohelpperformers createnewrevenuestreams www.performanceroom.com @performanceroom facebook.com/performanceroom
  62. 62. THANK YOU! BusinessModelGeneration.com Twitter: @andrelecointe
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