3. THE DIGITAL MUSIC INDUSTRY
Physical Sales Decreasing
2001-20011: US Records sales plummet from $14.6 Billion to $6.3 Billion
2015: Digital Music rose 6.9% to $6.9 billion, representing 46% World Market Sales
Streaming Growing
Streaming Growth: Revenues increased by 39% to $1.57 billion
Spotify: $.005 / stream
Consumer Priorities Shifting
Fans value online interactions, personalized content, and being in the loop.
Macro trend towards decentralization and independence in entertainment sector.
4. RISE OF THE
INDEPENDENT ARTIST
Direct-to-Fan
A business model used by independent musicians, independent music labels, comedians,
and many others in the entertainment industry that bypasses the major record label
model.
- Release music online and grow Fanbase.
- Engage them via social media.
- Monetize relationship.
Selling Experiences
Pioneered by the platform Bandpage: “It’s no longer just about selling t-shirts and tote
bags, it’s about selling experiences fans crave”.
7. Music needed a new model.
We built it.
Artists
Unable to monetize the content they publish on social media.
Fans
Crave exclusive and in depth access to their favorite Artists and Icons.
PAIN POINTS:
MONETIZATION & EXCLUSIVITY
8. Music needed a new model.
We built it.
Music Fans could spend up to $2.6 billion annually for behind-the-
scenes access to artists and exclusive content.
Nielsen SXSW Report
Buyers and the Beats
2014
UNTAPPED OPPORTUNITY
9. THE AZUMI SOLUTION
Privatizing Social Media
On Azumi anyone with a following can provide core fans
exclusive content and interaction for a subscription fee.
10. THE AZUMI SOLUTION
Social Network of Exclusive Content
Members subscribe to their favorite Artists’ “Tribes” receiving early access to
music, exclusive interactions and perks.
Flexible Commerce Model
Tribes are naturally free to join. Artists are in complete control of price, perks, and
brand sponsorships.
Connecting Culture
Azumi is a full scale social network for music and culture. Members’
contributions are rewarded with subscriptions, merchandise, and concert tickets.
Fans are able to follow Artist’s feeds for free and consume the same content and
music as their favorite Artists.
12. REASONS TO JOIN AZUMI
(Artists)
Sophisticated WebApp
Great design. Great execution. All in one place.
Fans like having hubs to access content. Azumi helps you control and monetize
yours through a secure stream.
Independence
Tribes are naturally free to join. Artists are in complete control of price, perks, and
brand sponsorships.
13. REASONS TO JOIN AZUMI
(Fans)
Exclusive Content
Access: Exclusive access to music, concert presales, behind the scenes
videos, and more.
Convenience: Access to musicians all in one platform.
14. REVENE MODEL
Micro Subscriptions [One Artist or Label]
Suggested Price: $10-$60/year.
Azumi cut: 3%-10%
Azumi Subscription [All Participating Artists]
$100/year
Revenue Projections:
Bassnectar: 6,006 subscribers: $120,120/year. Azumi cut of $15,015.00
Skrillex: 56,814 subscribers: $1,138197/year. Azumi cut of $142,274.63
Rihanna: 405,000 subscribers: $8,100,000/year. Azumi cut of $648,000.00
.05% adoption rate from Facebook followers at a rate price of $20/year.
15. COMPETITION
DRIP.FM
Similar subscription model
Focused on Labels instead of Artists
Heavily reliant on Email
High Price Points
BANDPAGE
Widget based Music Profiles
Marketplace for “Experiences” – e.g. selling
a livestream concert
PATREON
Patreon enables fans to give ongoing
support to their favorite creators.
Crowdfunding model where fans pledge a $
amount per creative update.
FAN CLUBS
Dave Matthews Band’s Fan Club amassed
$2.8M in revenue in one year.
16. CUSTOMER ACQUISITION
Artists Partnerships:
– Private Alpha Launch with 10 Artists
500 Test Users selected via Facebook &
Twitter for discounted trial.
Arranged releases of music, promoted
through artist’s social media channels.
Festival Partnerships:
- Sponsor a Festival Ticket Giveaway
Organize Festival Ticket giveaway to
Outsidelands, Snowglobe, and Lightning in a
Bottle. Azumi sign up required to be eligible.
Leverage Music Industry 2.0 Platforms:
- ProductHunt, Reddit, and music blogs
19. STATUS & GOALS
Alpha Prototype of Site Complete
www.azumi.io
Revise Summer, 2016
Trim fat and improve UX
Approach previously contacted artists
Confirm launch partners Launch Winter, 2016
Hit Critical Mass, Raise Seed, Earn Revenue
Expand to comedians, athletes,
and youtube stars
2016 - 2021
20. Risks & Considerations
Will fans pay for this? Research says yes
When to go to market? Bandcamp’s entry concerning
Entrepreneurship vs Employment Shorts vs. Long Term Gain
22. CONTACT US FOR
Artist Inquiries
Mentorship/Investment
Employment Opportunities
To Say Hello!
23. SOURCES
Nielsen/SXSW: The Buyer and the Beats
Money.CNN: Music’s Lost Decade
New York Times: Downloads in Decline
TechDirt:
The Future of Music Business Models
Dave Matthews Band: a Case Study of Fan Clubs
24. Music needed a new model.
We built it.
Music needed a new model.
We built it.
CULTURE’S PLAYGROUND
AZUMI
Max Lawrence
max@azumi.io
