10. How people listen to music today
*Base: US online adults who listen to audio at least weekly (multiple responses
accepted)
Source: Forrester Research, 2008
Source: North American Technographics® Media And Marketing Online Survey, Q3 2007
11. Where is music in the iPod coming from?
*Base: US online adults who listen to audio at least weekly
(multiple responses accepted)
Source: North American Technographics® Media And Marketing Online Survey, Q3 2007
18. “The battle over online music is just an
opening skirmish. The recording
industry as we know it is history.”
Kevin Kelly, The New York Times Magazine,
March 2002
19. Some data on music sharing
An estimated 15 million tracks “change” hands every day
35 million people in the US download music
27 million allow other to download from their computers
2/3 of those downloading say they do not care whether the music
is copyrighted or not
Some data indicate that people that download the most are those
still buying more CDs
6 billion songs were sold by iTunes up to January 2009
Sources: Author, RIAA, Pew Internet Project. Financial Times. Billboard, 2009
23. Cost Components of a CD (circa 2000)
US $
Making the disc X
0.60
Making the cover X
0.15
Distribution and sales X
1.40
Marketing and promotion 2.15
Corporate marketing and discounts 0.86
Artist management (search, etc.) 1.08
Royalties to artists 1.29 1.99 go to
Royalties to composer
General and Admon
0.70
1.94
the “artists”
Label's profit 0.59
Price to distributor X 8.66
10.76
Personnel 1.36
X
Distribution costs
X
1.36
Rents in malls, etc.
X
2.55
Distributor's profit X
0.97
Sales price X Digital distribution?
17.00
32. Cost Components of a CD
US $
Making the disc X
0.60
Making the cover X
0.15
Distribution and sales X
1.40
Marketing and promotion 2.15
Corporate marketing and discounts 0.86
Artist management (search, etc.) 1.08
Royalties to artists 1.29 1.99 go to
Royalties to composer 0.70
General and Admon 1.94 the “artists”
Label's profit 0.59
Price to distributor X 8.66
10.76
Personnel X
1.36
Distribution costs X
1.36
Rents in malls, etc. X
2.55
Distributor's profit X
0.97
Sales price X Digital distribution?
17.00
33. Would you like to be part of the
discovering process of a new artist?
Would you fund an emerging artist?
34. Now, you can! www.slicethepie.com
Launched 18 June 2007
35. Slicethepie: Results so far
Has raised £150.000 for 9 artists to produce their first album
Plan for 2008. Securing financing for over 30 artists.
This is more UK artists than EMI, Sony BMG or Warner Music
achieved last year.
Success so far?
Over 7,000 artists have signed up
Over 400,000 independent reviews have been carried out by
users ‘scouting’
Trading in Contracts in the albums of The Alps, The Skies,
Miranda Barber, Scars on 45, Katrina Bello, Tommy Ludgate and
John Tayles is currently live
36. The Problem Is Being “Unbundled”
Adding value doing something and capturing it some other way
can be very dangerous
Advising versus brokerage
Finding and promoting talent versus selling plastic
Providing searches versus advertising?