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UK Live Music Industry                 September 2011
About InklingInkling is a creative marketing agency thatspecialises in idea generation, brand strategy, socialmedia, digit...
Contents           Contents...           1. Music Business           2. Who Attends Concerts           3. Media Consumptio...
Music Business
Power Shift“For years record companies have had itall their own way but that’s changing andwe have to change with it”Ged D...
CommoditisationThe average hard drive contains over8,000 tracks(approximately 17 days worth of music)95% of music download...
Live Explosion46 million visits to music concerts in2010, up by 29.2% since 200582% increase in number of gigs35% increase...
Festival Fever59% of people attended a festival in last 3years700+ festivals in 201028% of festival are held in July21% of...
Burst Bubble?Top 100 US tours were down 17% to$965.5 million, lowest since 2005.Shows (and in some cases, whole tours)have...
SummaryPower shift from organisations to the consumerPeople are increasingly discerning and adventurousAtmosphere is the o...
Who Attends Concerts?
Youth Audience60% of 16-24 year olds would rather gowithout sex than music for a week.48% of 15-24 year olds have been to ...
TribalismAround two thirds of people who visit musicconcerts and festivals...Visit just one genreSources: Mintel: Music Co...
Festival Goers = HardcoreStrong correlation between festival visitorsand visiting other types of music concertRock/indie c...
Revenue By Region                                                                      4% 2%                              ...
Venue Type                                                                                  21%                           ...
SummaryKey audience = 16-24 affluent malesLittle cross over in terms of genreLeveraging existing fan communities and socia...
Media Consumption
Multi-Taskers  Squeeze 31 hours of activity into one day  26% of their time is spent on multiple media  They consume more ...
Digital Life88.4% of 16-24 year olds deemed as heavyuser of the internet75% go online every dayComputer is their main ente...
Free Loaders‘Access to all areas’ mentalityAnd a real reluctance to pay for mediacontentLess interested in tangible format...
Broadcast16-24 year olds:- watch less television- listen to less radio- read less newspapers and magazinesHowever they sti...
Mobile97% of 15-24 year old consumers own amobile phone.37% of young consumers owning asmartphone71% of smartphone owners ...
SummaryExperts at filtering informationMedia consumption in consumers aged 16-24 is largely dictated by the pace oftechnol...
Social Media
TEMPORARY TIESFriends                         WEAK TIES          Friends of friends and can reach big numbers.          Ho...
CommunicationOne to one. One to some. One to many.Some to some. Some to manyMany people use email for private exchanges4 r...
InfluenceNo such thing as ‘the’ influencerMuch more complicatedDuncan Watts (Yahoo! Research) found thatwhen choosing new ...
The GamePeople care about what they look likeCollect badges, friends, followers and titlesDrive trail/participationEstabli...
SharingContent is kingPhotos, videos etcGroups, likes, retweet, status up datesNews and informationPrivacy is key to build...
SourcesFriendsMark Granovetter, The Strength of Weak TiesBuddy Brain Drain, New York PostConnected, Christakis & FowlerFac...
Key findings‘Friends’ are not one homogenous group and the way they interact can varywildlySocial media key to trial, advo...
Discovery
Where would you say that you usually find outabout new bands/artists that you like?                                       ...
Where would you say that you usually find outabout new bands/artists that you like?                                       ...
Social‘friend’ a band on Facebook and be alertedto their gig, just as you would a birthday56% heard of festivals by word o...
Why People Don’t Go60% of 16-24 year old concert / festivalgoers would go more regularly if ticketswere less expensive“Nea...
Filling The VoidSites such as Songkick exist purely to informmusic fans who register with it offorthcoming concerts and to...
SummaryIronically with so many methods of discovery fans are finding it hard to keep trackof their favourite bandsInvestig...
Ticketing
Buying TicketsOnline accounts for approximately 80% oftotal sales.80% of young consumers would beinterested or very intere...
Why Online?42% to get an online discount                                                              34% because it could...
Attitudes To Booking Online?83% find online more convenient                                                              7...
TrustSecondary operators marketing strategy hasbeen built on promoting its consumerprotection initiatives.51%of online sho...
Secondary Market  Almost 500,000 people have been ripped  off by ticket scams in the last year to the  tune of £30 million...
SummaryOnline is perceived to offer a better deal and convenienceBut has issues with trust, especially for a new platformT...
Insiders View
Game Changer“… social networking has changed the termsof how we and artists can engage with theirfans/ticket buyers. Annou...
Get To The Point“Make it as simple as possible, one clicksolution... Give incentives. If done properly,they do the work fo...
Create Noise“If there is no buzz - create it - be innovativeand make people think there is a buzz even ifthere isn’t - tea...
Loyalty“Bands like Mumford and Son do all theirown direct to fan gig promotion and onlyrelease tickets to the general publ...
Spend Prioritisation“Online ads, Facebook ads, national andregional press, in that order”           Ed Millett, Hear No Ev...
SMS Marketing“Not really too expensive and intrusive”                 Oli Issacs, This Is Music, Artist Manager   (Simian ...
SummarySocial media has allowed fans to engage with the acts they loveArtists and promoters can interact with fans and bui...
Ticketing
Ticketmaster                                                                       Number 1 ticketing site in UK with a st...
Ticketmaster4.58 million visitors PCM2.3 million unique visitors PCM30% market Share7.7 average minutes per visit2010 turn...
See Tickets                                                                       See Tickets claims to currently be selli...
See Tickets1.9 million visitors PCM1 million unique visitors PCM12.7% market Share7.7 average minutes per visit2010 turnov...
Get Me In!                                                                       UK-based secondary seat exchange allowing...
Get Me In!565,000 visitors PCM411,000 unique visitors PCM3.7% market Share2.3 average minutes per visit2010 turnover      ...
Viagogo                                                                       Viagogo is a secondary ticket exchange      ...
Viagogo624,000 visitors PCM428,000 unique visitors PCM4.1% market Share2.4 average minutes per visitReview Centre Av. Rati...
Seatwave                                                                       Claims to be “Europe’s largest online fan-t...
Seatwave584,000 visitors PCM379,000 unique visitors PCM3.8% market Share2.6 average minutes per visit2010     €5.2 million...
Songkick At its heart SongKick aggregates ticket prices. Tracking every venue, including small ones, for all types of musi...
SummaryTwo strategic approaches:1. Exclusivity2. Trust
Platforms
Overview: The premier European audio streaming platform. Soon hoping to launch in the USA.                   Strapline: Al...
Overview: Last.FM is a personalised music recommendation service based on the                                music they pl...
Overview: Apple’s opening shot into social networking in conjunction with their iTunes. Initially              lacking man...
Overview: Tracking handpicked music blog sites and then distilling the trending of                             new music, ...
Overview: A website that connects fans to the tours of their favourite artists.                                Strapline: ...
Overview: Nokia‘s “Comes With Music” was a short lived unlimited download service offered for              selected Nokia ...
SummaryClosed systems don’t thriveInterface is everythingUnique if possible, extra special if notOnline doesn’t mean virtu...
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Uk live music industry 2011

  1. 1. UK Live Music Industry September 2011
  2. 2. About InklingInkling is a creative marketing agency thatspecialises in idea generation, brand strategy, socialmedia, digital production, PR, experiential, eventproduction and content creation.If you would like to talk to us about how we can helpyour brand please email info@thisisinkling.comVisit our site for more information and to sign up toour weekly round up of the latest trends, must seeevents & outstanding creativity, Fried Gold.www.thisisinkling.com
  3. 3. Contents Contents... 1. Music Business 2. Who Attends Concerts 3. Media Consumption 4. Social Media 5. Discovery 6. Insiders View 7. Ticketing 8. Platforms
  4. 4. Music Business
  5. 5. Power Shift“For years record companies have had itall their own way but that’s changing andwe have to change with it”Ged Doherty, Head of Sony BMG“Now it’s a more balanced business whereyou have records, TV shows, merchandise,touring revenues and so on”Jean-Bernard Levy, CEO of Vivendi (parent company of Universal MusicGroup)
  6. 6. CommoditisationThe average hard drive contains over8,000 tracks(approximately 17 days worth of music)95% of music downloads are illegal35-40% would rather put up with free, ad-interrupted streaming services than payfor ad-freeTop 100 selling albums in 90’s accountedfor 30% of sales, today its closer to 5%Sources: IFPI, Digital Music Report, Mintel Digital Trends Report, Wired
  7. 7. Live Explosion46 million visits to music concerts in2010, up by 29.2% since 200582% increase in number of gigs35% increase in attendance59% are more excited about seeing aband live than listening to albums70% attend for the atmosphere as muchas the music“We talk more about music experiencesrather than music itself”David, 24Sources: TGI, Mintel Music Concerts & Festivals, EMR, Digital Music Survey,Carling Music Survey
  8. 8. Festival Fever59% of people attended a festival in last 3years700+ festivals in 201028% of festival are held in July21% of these are located in the South West.Increase in size of festivals:Bestival - 55k up from 10k in 2004Glastonbury - 180k up from 100k in 2000More than half of Benicassim tickets soldto BritsSources: Mintel Music Concerts & Festivals, Your Music Entertainment, BBC
  9. 9. Burst Bubble?Top 100 US tours were down 17% to$965.5 million, lowest since 2005.Shows (and in some cases, whole tours)have been cancelled by acts such asChristina Aguilera, The Eagles and LimpBizkitLive Nation has discounted more than700 shows by up to 25%.The average cost of a ticket for a musicconcert at NAA venues in 2009 was£44.59, an increase of 11.9% on 2008.Sources: Pollstar, Mintel Music Concerts & Festivals, National ArenasAssociation, PRS: Adding Up The UK Music Industry
  10. 10. SummaryPower shift from organisations to the consumerPeople are increasingly discerning and adventurousAtmosphere is the one thing you can’t replicate for free but it is a verycrowded market placeFans are looking beyond UK, possible new revenue streams and potentialpartnerships outside of music e.g. airline ticketsA perfect storm of reliance on live revenues, increased ticket prices andrecession may be about to burst the live music industryPossible messaging opportunity, facilitating fans attending concerts evenwhen money is tight
  11. 11. Who Attends Concerts?
  12. 12. Youth Audience60% of 16-24 year olds would rather gowithout sex than music for a week.48% of 15-24 year olds have been to afestival or concert in last 12 monthsPeople from the pre-/no family life-stageare the most likely to visit all types ofmusic concerts except classicalMuch more likely to:Come from ABC1 backgroundRead broadsheetHave reached higher educationSources: Mintel Music Concerts & Festivals, TGI
  13. 13. TribalismAround two thirds of people who visit musicconcerts and festivals...Visit just one genreSources: Mintel: Music Concerts & Festivals
  14. 14. Festival Goers = HardcoreStrong correlation between festival visitorsand visiting other types of music concertRock/indie concert-goers correlate mosthighly with festival goersAlso more open to different types of concerte.g. pop, dance, rap etcHeavily concentrated amongst 15-24-year-old malesSources: Mintel: Music Concerts & Festivals
  15. 15. Revenue By Region 4% 2% 6% 8% 21% 11% London South East North West Midlands Scotland South West North East Wales 14% Northern Ireland 19% 15%Sources: Mintel: Music Concerts & Festivals, PRS
  16. 16. Venue Type 21% 37% Arenas Mid-level Festivals Stadia Clubs Parks 19% 1% 11% 11%Club Regularly vs Gig Regularly- 35% vs 9% go weekly- 5% vs 32% go less than monthlySources: PRS, Mintel Music Concerts & Festivals, EMR Digital Music Survey
  17. 17. SummaryKey audience = 16-24 affluent malesLittle cross over in terms of genreLeveraging existing fan communities and social networks will be key as difficultto draw in casual fansFestival and rock/indie fans offer widest reach in terms of attendance andnumber of genresFocus marketing activity around London, North and Festivals
  18. 18. Media Consumption
  19. 19. Multi-Taskers Squeeze 31 hours of activity into one day 26% of their time is spent on multiple media They consume more hours of media a week than they get sleep Over a third of consumers aged 16-24 are classified as Early Adopters of technology, compared to 12% of the total populationSources: Channel 4: Youth Marketing Just Got Useful, Mintel iPhone Generation
  20. 20. Digital Life88.4% of 16-24 year olds deemed as heavyuser of the internet75% go online every dayComputer is their main entertainment hubMost popular internet activities (last 3 months)88% Email80% Social Network78% Watch video content77% Listen to music for free74% News sitesYoutube has greater reach than Facebook77.8% vs 65.2% over 3 month periodSources: TGl, Mintel: Digital Trends Report
  21. 21. Free Loaders‘Access to all areas’ mentalityAnd a real reluctance to pay for mediacontentLess interested in tangible formats(music, news, magazines, TV, video,podcasts and mobile apps)More likely to be male than femaleSources: Mintel Digital Trends Report
  22. 22. Broadcast16-24 year olds:- watch less television- listen to less radio- read less newspapers and magazinesHowever they still reach big numbersCinema is experiencing something of arevival90% have visited the cinema38% going at least once every monthSources: TGl, Mintel Digital Trends Report, ABCe, Ofcom
  23. 23. Mobile97% of 15-24 year old consumers own amobile phone.37% of young consumers owning asmartphone71% of smartphone owners in the UK havedownloaded an app20% 16-24s listen to music online through asmart phoneThe mobile internet has becomesynonymous with Facebook accessSources: Ofcom, Youth TGl, Mintel Digital Trends Report
  24. 24. SummaryExperts at filtering informationMedia consumption in consumers aged 16-24 is largely dictated by the pace oftechnological innovation itself, so need to be ahead of the game not merelyreacting to itDigital channels, mobile and cinema offer best route to audienceMobile integration will be key to any success as lowers the boundaries fromrecommendation to purchase
  25. 25. Social Media
  26. 26. TEMPORARY TIESFriends WEAK TIES Friends of friends and can reach big numbers. However, we can only keep up with 150 people STRONG TIES 4-6 independent groups of 2-10 Communication is concentrated around 5 strongest ties. Only regularly interact with 4 to 6 Facebook friends 80% of phone calls to the same 4 people 80% of Skype calls to the same 2 people Online gamers usually play with strong ties 150 - Dunbars Number When social groups begin to break down Seen in ancient villages Roman armies And even social networks
  27. 27. CommunicationOne to one. One to some. One to many.Some to some. Some to manyMany people use email for private exchanges4 reasons people update status- shape how others perceive them- maintain and grow relationships- share content- source information
  28. 28. InfluenceNo such thing as ‘the’ influencerMuch more complicatedDuncan Watts (Yahoo! Research) found thatwhen choosing new music, knowing whatmusic other people listened to was far moreinfluential than whether the music was ofhigh quality. He found that the music peopledownloaded was the music that other peoplehad downloaded before them.
  29. 29. The GamePeople care about what they look likeCollect badges, friends, followers and titlesDrive trail/participationEstablish advocacyMaintain loyaltyHelp me build trust in someone
  30. 30. SharingContent is kingPhotos, videos etcGroups, likes, retweet, status up datesNews and informationPrivacy is key to build trust
  31. 31. SourcesFriendsMark Granovetter, The Strength of Weak TiesBuddy Brain Drain, New York PostConnected, Christakis & FowlerFacebookusagewatch.orgCommunicationProfiles as Conversation, BoydAddressing Constraints, GrossMintel Digital Trends ReportInfluenceConnected, Christakis & Fowler6 Degrees, WattsThe Tipping Point, GladwellIdentifying Influential Spreaders in Complex Networks, Researchers at Universities in the USA, Sweden and IsrealEffects of Word of Mouth Versus Traditional Marketing, Trusov, Bucklin, PauwelsThe GameI rate you, you rate me. Should we do it publicly?, University of MichiganTrust and Nuanced Profile Similarity in Online Social Networks, GolbeckStrategies and Struggles with Privacy in an Online Social Networking Community, Strater and Lipford
  32. 32. Key findings‘Friends’ are not one homogenous group and the way they interact can varywildlySocial media key to trial, advocacy and loyaltyGo beyond the cash incentive to earn it e.g. reviews, recommendation,photography, video and social competitiveness/rewards
  33. 33. Discovery
  34. 34. Where would you say that you usually find outabout new bands/artists that you like? 100 80 67 63 60 49 40 21 Radio 18 20 Friends 17 Music TV Print Media 14 TV Shows 0 Music Mags BlogsSources: Human Capital: Youth and Music Survey
  35. 35. Where would you say that you usually find outabout new bands/artists that you like? 100 80 60 38 40 15 15 Youtube 20 Myspace 8 Band Site Facebook 4 NME 4 0 Last.fm 1 BlogsSources: Human Capital: Youth and Music Survey
  36. 36. Social‘friend’ a band on Facebook and be alertedto their gig, just as you would a birthday56% heard of festivals by word of mouth48% used community websitesSources: Association of Independent Festivals
  37. 37. Why People Don’t Go60% of 16-24 year old concert / festivalgoers would go more regularly if ticketswere less expensive“Nearly 35% of [ticket] inventory goesunsold and if you ask fans why they didn’tgo to shows, one of the more popularreasons is ‘I didn’t know about it.’” Sean Moriarty, former CEO of TicketmasterSources: Mintel Music Concerts and Festivals
  38. 38. Filling The VoidSites such as Songkick exist purely to informmusic fans who register with it offorthcoming concerts and tours.
  39. 39. SummaryIronically with so many methods of discovery fans are finding it hard to keep trackof their favourite bandsInvestigate partnerships / integration with: - Recommendation services - Youtube - Radio stations - Social networks
  40. 40. Ticketing
  41. 41. Buying TicketsOnline accounts for approximately 80% oftotal sales.80% of young consumers would beinterested or very interested in using theirmobile phone to pay for products.Sources: Mintel Online Booking and Ticket Purchasing, Alcatel-Lucent
  42. 42. Why Online?42% to get an online discount 34% because it could only be booked online20% were already online comparing prices 14% clicked through from email newsletter12% were sent a link by a friend or family member 11% read a review, then clicked through to book3% saw a post or photo on friends social network profileSources: IPSOS, Mintel Online Booking and Ticket Purchasing
  43. 43. Attitudes To Booking Online?83% find online more convenient 79% only trust well-known sites for buying tickets72% are confident that online transactions are secure 64% say a poor website would put them off a venue58% are more confident about getting popular tickets 50% are more likely to book if there are photos30% are more likely to book if there are videosSources: IPSOS, Mintel Online Booking and Ticket Purchasing
  44. 44. TrustSecondary operators marketing strategy hasbeen built on promoting its consumerprotection initiatives.51%of online shoppers said social mediahad influenced their online purchasingactivities in the past.74% of these people said reading a negativecomment influences their likelihood to dobusiness with the company with56% said they avoided a particular vendorafter reading bad reviews.52% saying they used a particular vendorafter reading good reviews.Sources: Mintel Online Booking and Ticket Purchasing, Tealeaf
  45. 45. Secondary Market Almost 500,000 people have been ripped off by ticket scams in the last year to the tune of £30 million. One in seven people who buy a ticket to a live event is ripped off by a fake website. 70% of scams relate to live music events.Sources: Viagogo, Metro, Mintel Music Concerts and Festivals
  46. 46. SummaryOnline is perceived to offer a better deal and convenienceBut has issues with trust, especially for a new platformTrust can be built through design, user experience, peer recommendation,partnerships and leveraging background of credibility of boards
  47. 47. Insiders View
  48. 48. Game Changer“… social networking has changed the termsof how we and artists can engage with theirfans/ticket buyers. Announcements can beinstant and we can run specific pre sales justto facebook fans. People can also ‘complain/engage’ with us directly and for certainevents such as festivals we can find outopinions on line up/artists.” Julie Morgan, Marketing Manager, SJM Concert Promotion
  49. 49. Get To The Point“Make it as simple as possible, one clicksolution... Give incentives. If done properly,they do the work for you.” Toby Peacock, Head of Global Project Management, [PIAS] Entertainment (Seasick Steve, Grace Jones, Royksopp, Vitalic)
  50. 50. Create Noise“If there is no buzz - create it - be innovativeand make people think there is a buzz even ifthere isn’t - tease people - make people go -what the fuck is that? People like to thinkthey know everything and when they don’t itfucks with them.” Caroline Reason, CAA UK, Booking Agent (Blur, Beck, Radiohead, 50 Cent, Yeah Yeah Yeahs)
  51. 51. Loyalty“Bands like Mumford and Son do all theirown direct to fan gig promotion and onlyrelease tickets to the general public if theycan’t sell all their tickets in house first.” Jon Slade, CEO, Elastic Artists, Booking Agent (Animal Collective, Diplo, Black Lips, Flying Lotus)
  52. 52. Spend Prioritisation“Online ads, Facebook ads, national andregional press, in that order” Ed Millett, Hear No Evil, Artist Manager (Guillemots, Ray Davies, Penguin Prison, Fyfe Dangerfield, Sparkadia)
  53. 53. SMS Marketing“Not really too expensive and intrusive” Oli Issacs, This Is Music, Artist Manager (Simian Mobile Disco, A-Trak, Little Boots, Annie Mac)
  54. 54. SummarySocial media has allowed fans to engage with the acts they loveArtists and promoters can interact with fans and build stronger relationshipsPeople want ‘one-click’ solutionsIncentives can help pull people over the lineCan’t just rely on the music / artist to get people talkingThere are different ‘levels’ of fan and they need different approachesA trend for artist going straight to their fans to sell tickets has started organically
  55. 55. Ticketing
  56. 56. Ticketmaster Number 1 ticketing site in UK with a strategy built around exclusive deals with venues January 2008 purchased of Get Me In! for a fee in the region of £50 million. January 2010 merged with Live Nation to create Live Nation Entertainment. Established an 83% market share in US ticket sales by acquiring seven of its rivals and whose biggest client was Live Nation. Sunday Times investigation found that attempts to buy tickets for Lady Gaga and Kylie Minogue tours on Ticketmaster were directed to Get Me In!Sources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  57. 57. Ticketmaster4.58 million visitors PCM2.3 million unique visitors PCM30% market Share7.7 average minutes per visit2010 turnover £77.8 million10% growth vs 2009Review Centre Av. Rating - 1.8(out of 5) from 115 reviewsSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  58. 58. See Tickets See Tickets claims to currently be selling in excess of 9 million tickets per annum in the UK with gross sales exceeding £240m per annum. In 2007, it famously sold 137,500 tickets for the Glastonbury Festival in 1 hour 45 minutes. Four strands: 1. Traditional ‘pure play’ agent 2. Web-based self-service offering 3. Provision of box office systems 4. Ticket management facilities to venues and promoters who prefer to do their own selling.Sources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  59. 59. See Tickets1.9 million visitors PCM1 million unique visitors PCM12.7% market Share7.7 average minutes per visit2010 turnover £7.4 million11% growth vs 2009Review Centre Av. Rating - 1.7(out of 5) from 115 reviewsSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  60. 60. Get Me In! UK-based secondary seat exchange allowing fans to buy and sell tickets amongst each other for live sport, concert, theatre, opera and other events. ‘Tickets for true fans. Guaranteed’ FanGuard Guarantee - a pledge that buyers will receive the tickets ordered (comparable or better) in time for the event, with a refund if the event is cancelled. In the event that these terms cannot be met, buyers receive a 100% refund plus a 50% credit towards any future purchase. Prices being charged for tickets on Get Me In! attract criticismSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  61. 61. Get Me In!565,000 visitors PCM411,000 unique visitors PCM3.7% market Share2.3 average minutes per visit2010 turnover £4.3 million11% growth vs 2009Review Centre Av. Rating - 3.6(out of 5) from 115 reviewsSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  62. 62. Viagogo Viagogo is a secondary ticket exchange offering buyers and sellers a trusted and secure platform for trading of tickets supported by a guarantee. Adopted a strategy of becoming the official secondary ticketing partner with major names in the entertainment field; such deals have been done with Manchester United, Madonna, Isle of Wight Festival, Festival Republic and IPC Media (NME) Signed a deal with the Nectar loyalty programme whereby Nectar customers buying tickets on Viagogo earn pointsSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  63. 63. Viagogo624,000 visitors PCM428,000 unique visitors PCM4.1% market Share2.4 average minutes per visitReview Centre Av. Rating - 3.6(out of 5) from 482 reviewsSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  64. 64. Seatwave Claims to be “Europe’s largest online fan-to- fan ticket exchange” with more than 1 million tickets on sale at any one time. TicketIntegrity, which guarantees that buyers will receive the tickets they ordered in good time for the event or, failing that, they receive a 100% refund TicketCover, which provides a full refund if an event is cancelled White label arrangements, providing exchange site which is then rebranded by its client e.g. hmvtickets Signed a revenue-sharing promotional deal with MTV under the terms of which MTV.co.uk promotes tickets for gigs and festivals from within news and features throughout its site First ever ATL campaign in 2010Sources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  65. 65. Seatwave584,000 visitors PCM379,000 unique visitors PCM3.8% market Share2.6 average minutes per visit2010 €5.2 millionReview Centre Av. Rating - 4.1(out of 5) from 115 reviewsSources: Mintel Online Booking and Ticket Purchasing, Review Centre,Company Accounts, ComScore
  66. 66. Songkick At its heart SongKick aggregates ticket prices. Tracking every venue, including small ones, for all types of music except classical. Recently raised $1.8 million in its 4th round of funding. This latest round of funding puts SongKicks fundraising total at just under $7.5 million. SongKick have not released any official traffic figures but claim expansion of 20% a month, which they say will make them larger than Ticketmaster in about a year. Believing they can easily become a high traffic site with more than 60 million unique visitors per month. The site also collects reviews of concerts and has an archive section which carries details of concerts 20 or thirty years ago. People upload photos, video, and setlists. Deals include Youtube and Vevo links to corresponding pages on SongKick as well as with Yahoo search where they add value to its music searches.Sources: Wired, Paid Content, Mashable, Silicon Valley Watcher, Read Write Web, Social Beat
  67. 67. SummaryTwo strategic approaches:1. Exclusivity2. Trust
  68. 68. Platforms
  69. 69. Overview: The premier European audio streaming platform. Soon hoping to launch in the USA. Strapline: All the music, all the time. Paid Subscribers: 1 millionPR and Partnerships • July 2009 – iPhone and Android app released • October 2009 – 3UK/HTC partnership starts mobile UK offering • November 2009 – Symbian app released for Nokia, Samsung, Sony phones • April 2010 – Facebook connectivity, music sharing between friends and music management improved. • May 2010 – Ad free, paid subscriber service launched • September 2010 - Sonos partnership brings Spotify access to home hi-fi • October 2010 - Windows Phone app launch • January 2011 – Logitech partnership for more home hi-fi access • January 2011 – Shazam partnership delivers ability to play and buy track after tagging in Shazam apps.History1) Company started in 2006. No labels on board until 2008.2) 2009 less than 10% of users were premium subscriber with 50% growth rate, month on month3) February 2011 still not launched in the USA. Signed with EMi and rumoured to be close to deal with Warners.4) Still running at a loss, but valued at $1bn.5) February 2011 – Spotify reaches 1 million paid subscribers.Criticisms • Independent record labels are threatening to leave the platform over lack of royalties vs majors • Royalties negotiations with the majors are covered by NDAs
  70. 70. Overview: Last.FM is a personalised music recommendation service based on the music they play on their PC, mobile device or blog site Strapline: Need New Music? Monthly Unique Visitors: 5 millionFeatures • Creates user profiles using “The Scrobbler”, a small application that tells Last.FM what songs you are playing on your computer or mobile device. • Recommendations are based upon play data collected by the Scrobbler. • 2010 US user base generated about 1,000 pieces of track data per second.PR and Partnerships • Scrobbler written for connectivity with almost every PC based audio player, all major mobile platforms and many blog pages. • February 2008 Hype Machine Scrobbler released and marketed on both websites. Interconnect of user profiles between the sites possible. • December 2008 Scrobbler incorporated into Spotify software.History1) Complete redesign in 2008 after CBS purchase. CBS press release claimed a 20% increase in traffic.2) More than 3.5 million tracks available to stream on-demand 18million tracks scrobbled per day3) Free streaming policy ceased in 2009 in all countries except the UK, USA and Germany. Subscription fee in all other countries in place at €3 per month.4) 2009 financial year saw company move much closer to profit, going from a £17m loss in 2008 to a £2.8m loss, with 55% of revenue generated from the UK market and 33% from the US market.
  71. 71. Overview: Apple’s opening shot into social networking in conjunction with their iTunes. Initially lacking many of the expected features, Ping has improved it’s feature list steadily since it’s launch. Strapline: A Social Network for Music. Monthly Unique Visitors: Official numbers unavailable but some suggest only about 1 millionFeatures • Users can follow favourite artists. • Artist’s recommendations and likes listed in their profile. • Like and Post buttons available at point of sale within the iTunes store. • Artist feed for status updates, photos etc. • Users can see what friends and other fans have been listening to.PR and Partnerships • Permanent presence on the iTunes stores. • Status updates feed Twitter stream. • Concert information provided by Live Nation.Criticisms • Lengthy signup process. • Difficult to connect with friends – no Facebook integration. Initially no contact import facility (eg with Gmail address book) but that has now been rectified. • User’s taste in profile limited to three genres • Flawed recommendation engine • Initially a lack of artist pages even for relatively large artists
  72. 72. Overview: Tracking handpicked music blog sites and then distilling the trending of new music, aggregation of comments and creation of a community Strapline: None Monthly Unique Visitors: 250,000 – 300,000Features • Where possible, all tracks available for preview on the website are also linked to the major digital music retailers – iTunes, Amazon, eMusic. Hype Machine’s commission is their primary revenue source. • Integrated with Twitter, Facebook, Soundcloud, Last.FM, Songkick.com • Re-promotes the blogs that are it’s sources as banner ads on the site. • Users can view their friends listening histories. • Has an annual summary in it’s Zeitgeist section. • Planning iPhone application.PR and Partnerships • Soundcloud partnership to facilitate label and artist to supply pre-release material to bloggers. • Last.FM Scrobbling enabled for registered users. Promoted on banner ads.Criticisms • Some industry players have criticized it for making it easier to download music for free.History • 2007 – Profiled on CNN, Wired, The Guardian • 2009 – On 100 Essential Websites list in The Guardian. • 2010 - Began Soundcloud partnership to allow labels and artists to service bloggers with new and pre-release tracks eg Warpaint, Lykke Li, The Dears.
  73. 73. Overview: A website that connects fans to the tours of their favourite artists. Strapline: None Current Monthly Unique Visitors: 100,000 +Features • Imports favourite artists list from your Last.FM or Pandora profile. • Facebook app for increased social networks integration. • Their API allows connection through iTunes, Last.FM and Pandora. Concert listings can then be filtered by artist, location and date and other recommendations made based upon the user’s artist preferences. • iPhone app – scans users iTunes library and in combination with the phone’s GPS functionality, sends concert notifications and recommendations to them. Not available in the UK (??) • Alerts based around favourite artists, favourite venues, friends gig activity. • Distills Twitter feeds, capturing tweets about local shows of favourite artists so users can “experience” the concert. • Has the largest database of upcoming concerts in the world (Music Week 13 August 2009) • Affiliate program allows 50% of ticketing revenue received by Bandintown from third party users goes to host website. Current partners include HypeMachine, TuneGenie, Pure Volume and Absolute Punk.PR and Partnerships • Facebook, Last.FM partnership links user profiles to tour information. • Partnerships with 60 ticket providers in 140 countries – Ticketmaster, Stubhub et alHistory • March 2009 – launch API for integration into other music sites. • May 2009 – Google Trends traffic listed as approx. 750k Monthly Uniques • August 2009 – iPhone app launched that integrates GPS data for local gig recommendations, and also site redesign and Twitter integration. • August 2009 – 30,000 registered members, 500k+ unique monthly visitors. • September 2009 – Affiliate program launched to share ticketing revenue.
  74. 74. Overview: Nokia‘s “Comes With Music” was a short lived unlimited download service offered for selected Nokia handsets. The service was free for the life of the phone contract. Strapline: Comes With Music Monthly Unique Visitors: N/AFeatures• Major label content contained DRM except in China.• Users were able to keep their downloads after the first year even if they did not continue to pay for the service.• Piracy concerns meant that tracks could only be transferred between the handset and the user’s computer.History• October 2008 – Launch party.• December 2008 – Tunebite software released that strips the Microsoft DRM from downloaded tracks.• July 2009 – Unofficial figures revealed the service only had 107,227 users across the initial nine countries it waslaunched in.• August 2010 – Rebranded as OVI Music Unlimited and folded into the OVI Suite offering.• 2011 – OVI Music Store Unlimited closed in 27 markets (remains in India, China and Indonesia).
  75. 75. SummaryClosed systems don’t thriveInterface is everythingUnique if possible, extra special if notOnline doesn’t mean virtualMusic consumers are mostly not train spotters

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