The Music Industry - what's broken (excerpt of a keynote)
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The following slides are a very brief excerpt of a 60 minute keynote I’m giving at Eurosonic Noorderslag, Europe’s most important live music industry conference
the following slides are a very brief
excerpt of a 60 minute keynote Iʼm giving
at Eurosonic Noorderslag, Europeʼs most
important live music industry conference
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
nnabe mass
hits & wa
hits market
KEY CHANNELS
RESOURCES
COST STRUCTURE REVENUE STREAMS
huge sales
from few
artists’ albums
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
nnabe mass
hits & wa
hits market
KEY CHANNELS
RESOURCES
Retailers TV
“new” digital
Radio
channels
COST STRUCTURE REVENUE STREAMS
huge sales
from few
artists’ albums
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
nnabe mass
hits & wa
hits market
KEY CHANNELS
RESOURCES
Retailers TV
“new” digital
Radio
channels
COST STRUCTURE REVENUE STREAMS
huge sales
tours & from few
merch
andisin
g
concerts artists’ albums
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
nnabe mass
building tale hits & wa
nt market
hits
KEY CHANNELS
RESOURCES
Retailers TV
“new” digital
Radio
channels
COST STRUCTURE REVENUE STREAMS
huge sales
tours & from few
merch
andisin
g
concerts artists’ albums
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
nnabe mass
building tale hits & wa
nt market
hits
KEY CHANNELS
RESOURCES
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
huge sales
tours & from few
merch
andisin
g
concerts artists’ albums
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
huge sales
tours & from few
merch
andisin
g
concerts artists’ albums
The “Old” Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
?
assess the business model
building blocks of the “old” model /
where are the weaknesses?
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
piracy
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
unbundling of
COST STRUCTURE price of songs REVENUE STREAMS into single
albums
tending towards songs (iTunes)
royalt
y huge sales
ing & payme ZERO
tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS distribution is a
RESOURCES commodity, attention is
manufacturers the new scarcity
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
talent will be
marketing &
discovered by
promo on
other mechanismsti
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
social
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
networks are what
drive music sales
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
bloated cost content Radio
channels
structure (talent
discovery/marketing)
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
marketing &
promotion
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels
shift of the hits
balance of power
towards artists KEY CHANNELS
RESOURCES
manufacturers
portfolio of Retailers TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
customer
marketing & needs are not
promotion being satisfied
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels hits
KEY CHANNELS
RESOURCES itʼs all about
manufacturers hits AND the Long
portfolio of Retailers
Tail of music TV
star artists
copyrighted “new” digital
content Radio
channels
COST STRUCTURE REVENUE STREAMS
royalt
y huge sales
ing & payme tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists
The Old Record Label Model
KEY KEY OFFER CUSTOMER CUSTOMER
social
PARTNERS ACTIVITIES RELATIONSHIPS SEGMENTS
networks are what
talent will be customer drive music sales
marketing &
discovered by needs are not
promo on
other mechanismsti being satisfied
detecting &
distribution nnabe mass
building tale hits & wa
nt market
channels
shift of the hits
balance of power
towards artists KEY CHANNELS distribution is a
RESOURCES itʼs all about commodity, attention is
manufacturers hits AND the Long the new scarcity
portfolio of Retailers
Tail of music TV
star artists
copyrighted “new” digital
bloated cost content Radio
channels
structure (talent piracy unbundling of
discovery/marketing) price of songs REVENUE STREAMS into single
albums
COST STRUCTURE songs (iTunes)
royalt tending towards
y huge sales
ing & payme ZERO
tours &
market subsidizing nts from few
merch
andisin
ion g
promot unsuccessful concerts artists’ albums
artists