iapploud Music Platform - Concept & Business Model


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iapploud is a global integrated ecommerce and marketing platform for independent arts (music, books & films). iapploud brings together artists, buyers and brands under one umbrella to create an ecosystem where everyone wins!
Being Independent PAYS! http://www.iapploud.com

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iapploud Music Platform - Concept & Business Model

  1. 1. Web Properties | Technology Solutions | Digital Marketing | Creative Services iapploud Business Plan
  2. 2. iapploud is a global integrated ecommerce and marketing platform for independent arts (music, books & films). iapploud brings together artists, buyers and brands under one umbrella to create an ecosystem where everyone wins! iapploud is an online property of Adya Mindworks and is a Start-up based out of Mumbai and Pune Being Independent PAYS! www.iapploud.com
  3. 3. iapploud is a revolutionary cloud based sales and marketing platform that helps Independent Artists market and sell their music and to a targeted fanbase. iapploud’s business model sidesteps middlemen such as record labels, agents and promoters, thereby empowering the artists and ensuring they gain most from their craft iapploud’s unique marketing tools leverage its biggest strength, the listener base, to provide artists exponential online reach that goes beyond “likes” and “followers”. Artists will be able to build a fan- base that listens to, buys and popularizes their music. To a listener, iapploud is a platform where they can listen, buy and help their favored artists gain popularity in exchange for some amazing rewards. They get rewarded for marketing actions, listening and buying music, with the ability to encash these rewards for a variety of lucrative offers. iapploud will generate revenues through artist subscriptions, music sales, streaming, advertising and commercial partnerships. Copyright 2012 ADYA Mindworks Phase One - iapploud music
  4. 4. Problem Definition Record Label Cartel: Big Four Major record labels represent the majority of the music sold, making up as much as 75% of the music market or more. - Record Labels exercise control over digital platforms such as iTunes, Spotify and Deezer - Record labels influence global music trends. Valuable genres are facing oblivion Piracy: More than 76% of all music downloads globally are illegal.* Apart from revenue losses, piracy focused on popular tracks leads to negligence of independent talent Middlemen: Too many middle men like record label, promoter, agent. Artist earns 10% of marked up price ($1.60 on a single album priced at $15.99) * Music Marketing: The digital revolution has forced independent musicians to turn into marketers, which is huge shift. There is lack of integrated sales and marketing platforms. It’s a game of “likes” and “followers” The Online Distribution Myth: Having your music on multiple music stores does not guarantee sales. More than 10 million tracks lying unsold on iTunes. *Sources: IFPI report 2012, Business Insider Copyright 2012 ADYA Mindworks
  5. 5. Solution An integrated sales and marketing platform that provides: Artists - Integrates music sales and marketing - Superior user experience and Robust Technology - Easy to use and intuitive marketing tools enabling exponential online reach - A Listener base that genuinely listens, buys and promotes their music - Opportunity to earn lion’s share of revenues through sales and licensing opportunities by eliminating middlemen Listeners - Top notch Global music catalogue across genres and styles - Provide high quality music through rigorous quality control process - A social network dedicated to music - Incentive to listen, buy and promote Independent Music; discourage piracy - Superior user experience and choices of download and streaming across devices and operating systems Brands - Access to a targeted global audience - A platform that rewards its customers - An innovative business model that delivers ROI Copyright 2012 ADYA Mindworks
  6. 6. Market Validation 2011 Global Figures Online Music Revenue $5.2 bn (8% growth) Subscription Services $241 mn (13.5% growth) Music Services - Paying subscribers 3.4 mn (65 % growth) Digital Album Sales Volume 23% growth Over 500 Online Music Services in 78 countries. Only 7 in India Copyright 2012 ADYA Mindworks
  7. 7. Revenue Sources • $25 Annual Subscription for Artists – 12 tracks limit • 15% of music sales revenue • 10% of “rewards” value • Advertising revenues (Artists & Brands) – Advertising programs for Artists and Brands. Copyright 2012 ADYA Mindworks
  8. 8. Competitive Landscape Walmart Music Download - Online Record store - Pay-per-song/Subscription ovi Spotify Deezer grooveshark Music beta iTunes Windows Live SkyDrive Music Streaming - Access to large library - Subscription Music Locker - Cloud Hard-Drive - Backup and access anywhere Amazon mp3 Cloud based Integrated Music Sales & Marketing Copyright 2012 ADYA Mindworks
  9. 9. Competitive positioning iTunes Amazon Spotify CD Baby TuneCore iapploud Sales P P P P P P Integrated Marketing Tools P Quality Control P P P P P P Streaming P P P Distribution P P Cost/album/year $55 $45 35 Euros $49 $9.99 $25 Royalty 70% 70% 0.003 EUR/play 75% 100% 85% Rewards P Social networking P Targeted promotions P Independent Music focus P P P
  10. 10. Competitive Advantage • India’s only Global Cloud based Integrated Sales & Marketing platform focused on Independent Music • Strong global online community of over 6500 artists • Engage directly with artists to keep the middlemen out and offer a lucrative remuneration structure. • Affordable and transparent pricing model • Unique customer reward model that encourages users to listen, buy and promote good music • Offers artist the ability to build a targeted fan-base that goes beyond likes and followers • Superior user experience and easy to use tools and functionalities • Business model and technology platform that is scalable to include other Independent Arts such as books and films Copyright 2012 ADYA Mindworks