Latest SoundCloud Market Research on Vertical Expansion


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  • According to Scarborough data, 46.76 million Americans used such services monthly in 2012, on average tuning in for 9 hours 46 minutes every week. eMarketer projects that nearly 54 percent of the entire U.S. population and as much as 67.4 percent of the U.S. internet users will have become online radio users by 2016.
  • Around 70 percent of Americans were aware of the service in September and 25 percent of those used it. In comparison, iHeartRadio could count on an awareness level of around 48 percent, and a 17 percent reach.
  • Radio + Music SoundCloud app
  • The insight is based on the secondary research I have collected and my analysis.
    It can be further prioritized based on the degree/level of implantation and user impact.
  • Latest SoundCloud Market Research on Vertical Expansion

    1. 1. Latest Market Research on Market Expansion Ines Chen
    2. 2. Two types of users Audio Creators Audio creators(artists, bands, podcasters and ordinary people) who provide the content for self- promotion or sharing. (They also act as the audience using the site to interact with others.) Audience Users who listen to the audio files, give comments and share audio files on SoundCloud community or Facebook.
    3. 3. Contents 1. Which vertical should we focus on? 2. How will I test my hypothesis? 3. How can we apply the insights?
    4. 4. Which vertical should we focus on?
    5. 5. The future is already here. It's just not very evenly distributed. - William Gibson
    6. 6. ((The new era of radio)) has already arrived.
    7. 7. Why radio?
    8. 8. U.S. online radio market size In 2013, •Online radio is expected to generate 827 million U.S. dollars in revenue. •67.4 % of the U.S. internet users will have become online radio users by 2016. In 2012, •46.76 million Americans used such services. •Tuned in 9 hours 46 minutes every week. Sources:
    9. 9. Market Share Source:
    10. 10. • 8.5 % of all radio listening time in the U.S. in Feb 2013 • The highest rate of awareness and broadest reach among similar online services in 2012 Mayor Competitor: Pandora Source:
    11. 11. Pandora’s competitive analysis Strength 1. Self tailored music station supported by its algorithm 2. Automated music recommendation based on collective user feedback 1. Unable to create and share your own playlist 2. No social feature: “follow & discover” 3. Limited social media integration. 4. No playlist created by artists and influencers 5. Lukewarm relationship with music industry and artists 6. Service limited in 3 countries Weakness
    12. 12. Pandora’s weakness  SoundCloud’s strength 1. Easily create and share your own playlist 2. Strong social media & social network integration: follow & discover artists 3. Many playlists created by artists and influencers 4. Strong relationship with music industry and artists 5. Global service
    13. 13. Potential market for SoundCloud Steal market share by positioning SoundCloud as a social stream music site Maximize SoundCloud’s advantage: the largest community of creators of music & audio Complement traditional radio station’s weakness
    14. 14. 80/20 Rule Reuse existing features to solve “new” problems & add more value
    15. 15. Radio creators’ problems & needs • Enhance reach and awareness • Get to know their audience and feedbacks  improve the content & target radio ads Source: • High costs to cover the bandwidth and servers • No know-how about setting up a radio Creators: 1. Existing traditional radio stations 2. People who want to set up an online radio station. Problems Needs
    16. 16. Audience’s problems & needs Problems Needs 1. Radio services can’t help them search for new music. 2. Online music sites can’t give expert’s opinion on music and provide info about what others are listening to. 3. Annoying ads or paid subscription services 1. Curiosity about the artist’s and band’s information 2. Curiosity about what friends & others think of songs, talks, and radio content 3. Use mobile phones to listen to radio Source: listening-to-internet-radio-in-the-us/ The Role of Digital Audio in the Evolution of Music Discovery ( Inc_Music- Discovery_WhitePaper_2011.pdf)
    17. 17. Source: The Role of Digital Audio in the Evolution of Music Discovery ( content/uploads/2011/10/TargetSpot-Inc_Music-
    18. 18. Based on TargetSpot Research & my observation… 38-42% of people “discover new music” via online radios Source: The Role of Digital Audio in the Evolution of Music Discovery: Discovery_WhitePaper_2011.pdf
    19. 19. Reuse existing features to solve radio creators’ problems Easily create an online radio program anywhere & anytime. Enhance the interaction between DJs and their audience. Social media & network integration Affordable Pro plan with comprehensive analytics Source:
    20. 20. Adding value to existing creators Act as a radio station sharing knowledge about music via their music radios or radio shows and expand their audience.
    21. 21. Solve audience’s problems: Radio + MusicSoundCloud app [2 in 1]: Radio + Music in SoundCloud app •Convenience: listening to radio, discover, and search for new music at one site •Insights: radio hosts & DJs provide great sharing of music and artists.
    22. 22. People matters. People like to have interactions and a company; time spent on radio program is longer. Source: the-radio-in-the-us-by-age-and-gender/
    23. 23. Listening to radio is a habitual behavior.  Increasing user engagement & connection
    24. 24. Hypothesis Having the online radio vertical, which enables people listen to radio, discover, and search for music at one site, would be popular between radio creators and their audience.
    25. 25. Design the research & Test the hypothesis Get out of the building!
    26. 26. Three ways to test the hypothesis Macro level: – Online survey – Focus group interview Micro level – Interview with a wireframe demo Regarding the research plan to choose, it depends on the budget and timeline.
    27. 27. Five aspects of online survey questions 1. Demographic information 2. User’s existing behaviors and approaches toward using online radio 3. Needs and reasons for using online radio 4. User’s opinion toward our competitor’s sites 5. Factors that influence their decision toward using online radio service.
    28. 28. Gain insights from the focus group interview 1. Identify patterns 1. Identify the user types 2. Address their specific pain points 3. Explore the possible improvement and solutions _______ ________ ______ ____ ________ ____________ Problem Emotions Process Role Contexts Practical Needs
    29. 29. Interview with a wireframe demo 1. Test the understanding of the problem 2. Get customer feedbacks 3. Test the understanding of the solutions 4. Test whether the solution really solves the core problem of customers 5. Learn the minimum viable features from the initial stage Micro Level
    30. 30. Conclusion from the research To answer the five key questions: Who is our target user? What do they care about? When and where will they use our product? What features will differentiate our product?
    31. 31. Product Team Discovery feature Radio waveform inserted each song for users to discover and search for new music Develop radio widgets Develop easily-used widgets by the engineering team or third-party Tag feature DJ’s & host’s names, language, and mood. Local feature Tune Facebook info to identify user’s place to provide local radio recommendation New category Radio category  various subcategories Source: Turn the insights into action
    32. 32. Marketing Team Social media & blog sharing and promotion Connect with the radio community Build up a radio community, e.g. the global radio DJs/ hosts meetup day and meet your local DJs/hosts Press release for promoting radio features to new users Community Team SouncCloud 101 for radio stations Event:radio hackathon Partnership Team Cooperate with global & regional radio companies. Others: car integration Content Team Put radio features at the homepage Source: Turn the insights into action
    33. 33. What kind of impact we have on our users?
    34. 34. From my campus radio to BBC, from any radio to songs it plays, the distance is within “one or two clicks”.
    35. 35. Q&A