A Subscrition Service Study & Musical Talent Acquisition

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A Subscrition Service Study & Musical Talent Acquisition

  1. 1. Allan Cabral de Sa External Researcher in Music Industry MUSIC2ALL PROJECT
  2. 2. MUSIC2ALL PROJECT SUMMARY 1. Self Presentation 2. Goals 3. The Entertainment Industry 3.1 Projected & Real E&M growth in 2010 3.2 E&M Projections & Main Trends 3.3 Key Concerns 3.4 Global Device Sales 3.5 Evolution of Mobile Internet Revenues 3.6 Global Spending on Mobile Apps 3.6.1 Apps... 3.7 Past / Present / Future of E&M Contents 3.8 Risk Yourself 3.9 Collaborate 4. The Music Industry 4.1 Subscrition Business Model 4.1.1 Definition 4.1.2 Ownership vs Streaming 4.1.3 What do the consumers want? 4.1.4 What do Content Providers seems to want? 4.1.5 Consumers vs Content Providers 4.2 Music Talent Presentation 4.2.1 Unfulfilled Questions 4.3.1 Brainstorming Allan Cabral de Sa External Researcher in Music Industry
  3. 3. Allan Cabral de Sa Federal University of Santa Catarina Age: 21 City: Florianopolis Country: Brazil • Business Administration Student • Music Industry Researcher • Independent Musician • Activist Allan Cabral de Sa External Researcher in Music Industry
  4. 4. Goals (Why am I here?) • Study; • Getting in touch with the reality of a Record Label; • Listen to view points of Record Label managers; • Research to write a Thesis. Allan Cabral de Sa External Researcher in Music Industry
  5. 5. The Entertainment Industry • EXHIBITION ENTERTAINMENT INDUSTRY • MASS MEDIA ENTERTAINMENT INDUSTRY • FILM INDUSTRY • BROADCASTING INDUSTRY • PRINT MEDIA • MUSIC INDUSTRY • ANIMATION & VFX INDUSTRY • ADVERTISING INDUSTRY • FASHION INDUSTRY • THEME PARKS • NIGHTCLUBS • ELECTRONIC ENTERTAINMENT INDUSTRY • ETC, ETC, ETC “Global entertainment industry to be worth $2 trillion by 2011” Source: PricewaterhouseCoopers “More than 700 million people in China will be watching online video content in four years” Allan Cabral de Sa External Researcher in Music Industry
  6. 6. Projected & Real E&M growth in 2010 (%) Advertisers want more information and more verifiable returns on their ad expendtitures. They are also listening to – and engaging directly with – their consumers to a greater extent than ever before. TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  7. 7. E&M Projections & Main Trends "I think that we have created a new kind of person in a way. We have created a child who will be so exposed to the media that he will be lost to his parents by the time he is 12." , David Bowie Main Trends: Digital Mobility Collaborative Innovation Empowered Consumer Convenience Quality Experience Participation Privilege “In order for me to pay for content, it needs to be exclusive. With music, when I can’t find a free version of an album, I download a paid one. Same goes for movies.” , Moscow, 30-year-old TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  8. 8. Key Concerns • Convenience – The ability to offer a service anytime, anywhere, “whenever I want to”, making it an easier process than it was before. • Quality – Quality means....Quality! • Experience – Uniqueness. Interation. Consumer = Happy, satisfied, justified, cared for, served, respected. • Participation – Consumers love playing an active role in shaping their content. • Privilege – “Jump the Queue, please.”. Consumers are happy to pay for added value services such as earlier content, special offers, etc... TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  9. 9. Global Device Sales (US$ billions) Smartphone growth is a key driver of mobile spending on E&M content and mobile Internet acess. TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  10. 10. Evolution of Mobile Internet Revenues (US$ billions) TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  11. 11. Global Spending on Mobile Apps (US$ billions) TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  12. 12. Apps... E&M is a pricipally a tablet application. Book publishers, video game developers, television channels and film companies are now making all their content available to tablets. SMARTPHONE EARLY 2011: Nearly 11 billion apps were downloaded in 2010. TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  13. 13. Past / Present / Future of E&M Contents “Recent PwC research among US consumers aged 18 to 59 years suggests that pirating behavior will contiue.” 0% 20% 40% 60% 80% 100% Say they will CONTINUE pirating TV, movies and video content. When they get the chance to obtain pirate content on mobile in future, they WILL do so. "Somewhat willing" to pay for content if it can be acessed EARLIER to its release date. Users who acknowledge their participation in online piracy TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  14. 14. Risk Yourself E&M companies seems to be taking risks so much more than they used to do in the past. Today, instead of conducting a detailed research before lauching a product, companies just put something out there to see whether consumers will pick it up. BRANDED DIGITAL ENTERTAINMENT IS A FURTHER STRONG FOCUS “71% of 16-18 years old are more likely to buy a brand that tries to entertain them.” TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  15. 15. Collaborate! Source: PricewaterhouseCoopers THE KEY IS A COLLABORATIVE BUSINESS MODEL STRONG BRAND EXPERIENCE INTERACTION DIRECT MARKETING DATA MINING PERFECT ADVERTISEMENT CHANNEL AUDIENCE MEASUREMENT INTERMEDIATOR CONTENT CHANNELS TECHNOLOGY + SKILLS EXCLUSIVITY TheEntertainmentIndustry Allan Cabral de Sa External Researcher in Music Industry
  16. 16. The Music Industry Key challenges: • Evaluating the effectiveness of the current SUBSCRIPTION service’s business model; • Talent Presentation: How can everyone be seen in a large demand of people who want to work in the Music Industry? Allan Cabral de Sa External Researcher in Music Industry
  17. 17. Subscription Business Model Definition TheMusicIndustry • The consumer must pay a Subscription Service in order to have ACCESS to the product/service. It is an agreement which the consumers pay for content access for a specified period of time or performances. Allan Cabral de Sa External Researcher in Music Industry
  18. 18. Ownership Streaming Allan Cabral de Sa External Researcher in Music Industry Source: http://music-download-review.toptenreviews.com/ Source: http://mashable.com/2011/07/20/spotify-infographic/
  19. 19. Allan Cabral de Sa External Researcher in Music Industry INDICATORS A B C D E RESTRICTIONS PER USERS NO DOWNLOADING; ONLY ONLINE STREAM ONLY X LIMITED DOWNLOADS UNLIMITED DOWNLOADS X LIMITED DOWNLOADS ; ONLINE STREAM UNLIMITED DOWNLOADS; ONLINE STREAM SHAREABLE CONTENT NO SHARABLE CONTENT SHAREABLE ONLY WITH SERVICE’S SUBSCRIBED USERS SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS SHAERABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA AND OFFLINE DEVICES VIDEO INTEGRATION NO VIDEOS INTEGRATED INTEGRATED MUSIC VIDEOS INTEGRATED MUSIC VIDEOS AND FILMS INTEGRATED MUSIC VIDEOS, FILMS AND TELEVISION SHOWS “ALL-U-CAN-EAT” VIDEO INTEGRATED (+ PPV, ETC) ADDITIONAL CONTENTS NO OTHER CONTENT BESIDES THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; SERVICE’S/PARTNER’S ADS RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; ADVERTISEMENT; SERVICE’S/PARTNER’S ADS; “POST YOUR ADS HERE” PORTABILITY WEB WEB; DESKTOP WEB; DESKTOP MOBILE DEVICES WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA; OTHER EMERGING POSSIBILITIES (CAR, ETC) PAYMENT FREE PAY FOR INDIVIDUAL SONG LISTENED ON ONLINE STREAM OR DOWNLOADED TRACK BUY X SONGS TO LISTEN ON ONLINE STREAM OR TO DOWNLOAD PAY FOR PREDEFINED USAGE TIME OF THE DOWNLOAD SERVICE/ONLINE STREAM SERVICE FREEMIUM (FREE + PREMIUM SERVICE OPTION) EMPOWERED CONSUMER’S BEHAVIOR INTEROPERABILITY & OWNERSHIP SEEKERS “CONTENT ACESS” SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS
  20. 20. Subscription: Consumer WHAT DO CONSUMERS WANT? TheMusicIndustry Consumers want high advantages for low price. Allan Cabral de Sa External Researcher in Music Industry
  21. 21. Allan Cabral de Sa External Researcher in Music Industry The Music IndustryINDICATORS A B C D E RESTRICTIONS PER USERS NO DOWNLOADING; ONLY ONLINE STREAM ONLY X LIMITED DOWNLOADS UNLIMITED DOWNLOADS X LIMITED DOWNLOADS ; ONLINE STREAM UNLIMITED DOWNLOADS; ONLINE STREAM SHAREABLE CONTENT NO SHARABLE CONTENT SHAREABLE ONLY WITH SERVICE’S SUBSCRIBED USERS SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS SHAERABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA AND OFFLINE DEVICES VIDEO INTEGRATION NO VIDEOS INTEGRATED INTEGRATED MUSIC VIDEOS INTEGRATED MUSIC VIDEOS AND FILMS INTEGRATED MUSIC VIDEOS, FILMS AND TELEVISION SHOWS “ALL-U-CAN-EAT” VIDEO INTEGRATED (+ PPV, ETC) ADDITIONAL CONTENTS NO OTHER CONTENT BESIDES THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; SERVICE’S/PARTNER’S ADS RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; ADVERTISEMENT; SERVICE’S/PARTNER’S ADS; “POST YOUR ADS HERE” PORTABILITY WEB WEB; DESKTOP WEB; DESKTOP MOBILE DEVICES WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA; OTHER EMERGING POSSIBILITIES (CAR, ETC) PAYMENT FREE PAY FOR INDIVIDUAL SONG LISTENED ON ONLINE STREAM OR DOWNLOADED TRACK BUY X SONGS TO LISTEN ON ONLINE STREAM OR TO DOWNLOAD PAY FOR PREDEFINED USAGE TIME OF THE DOWNLOAD SERVICE/ONLINE STREAM SERVICE FREEMIUM (FREE + PREMIUM SERVICE OPTION) EMPOWERED CONSUMER’S BEHAVIOR INTEROPERABILITY & OWNERSHIP SEEKERS “CONTENT ACESS” SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS
  22. 22. Subscription: Content Provider WHAT DO ONTENT PROVIDERS SEEM TO WANT? TheMusicIndustry Allan Cabral de Sa External Researcher in Music Industry
  23. 23. Allan Cabral de Sa External Researcher in Music Industry INDICATORS A B C D E RESTRICTIONS PER USERS NO DOWNLOADING; ONLY ONLINE STREAM ONLY X LIMITED DOWNLOADS UNLIMITED DOWNLOADS X LIMITED DOWNLOADS ; ONLINE STREAM UNLIMITED DOWNLOADS; ONLINE STREAM SHAREABLE CONTENT NO SHARABLE CONTENT SHAREABLE ONLY WITH SERVICE’S SUBSCRIBED USERS SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS SHAERABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA AND OFFLINE DEVICES VIDEO INTEGRATION NO VIDEOS INTEGRATED INTEGRATED MUSIC VIDEOS INTEGRATED MUSIC VIDEOS AND FILMS INTEGRATED MUSIC VIDEOS, FILMS AND TELEVISION SHOWS “ALL-U-CAN-EAT” VIDEO INTEGRATED (+ PPV, ETC) ADDITIONAL CONTENTS NO OTHER CONTENT BESIDES THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; SERVICE’S/PARTNER’S ADS RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; ADVERTISEMENT; SERVICE’S/PARTNER’S ADS; “POST YOUR ADS HERE” PORTABILITY WEB WEB; DESKTOP WEB; DESKTOP MOBILE DEVICES WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA; OTHER EMERGING POSSIBILITIES (CAR, ETC) PAYMENT FREE PAY FOR INDIVIDUAL SONG LISTENED ON ONLINE STREAM OR DOWNLOADED TRACK BUY X SONGS TO LISTEN ON ONLINE STREAM OR TO DOWNLOAD PAY FOR PREDEFINED USAGE TIME OF THE DOWNLOAD SERVICE/ONLINE STREAM SERVICE FREEMIUM (FREE + PREMIUM SERVICE OPTION) EMPOWERED CONSUMER’S BEHAVIOR INTEROPERABILITY & OWNERSHIP SEEKERS “CONTENT ACESS” SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS
  24. 24. Comparison of needs CONSUMERS VS CONTENT PROVIDERS TheMusicIndustry ON WHICH PARTS DO THEY AGREE? Allan Cabral de Sa External Researcher in Music Industry
  25. 25. Allan Cabral de Sa External Researcher in Music Industry INDICATORS A B C D E RESTRICTIONS PER USERS NO DOWNLOADING; ONLY ONLINE STREAM ONLY X LIMITED DOWNLOADS UNLIMITED DOWNLOADS X LIMITED DOWNLOADS ; ONLINE STREAM UNLIMITED DOWNLOADS; ONLINE STREAM SHAREABLE CONTENT NO SHARABLE CONTENT SHAREABLE ONLY WITH SERVICE’S SUBSCRIBED USERS SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS SHAERABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA SHAREABLE WITH SERVICE’S SUBSCRIBED AND UNSUBSCRIBED USERS; SOCIAL MEDIA AND OFFLINE DEVICES VIDEO INTEGRATION NO VIDEOS INTEGRATED INTEGRATED MUSIC VIDEOS INTEGRATED MUSIC VIDEOS AND FILMS INTEGRATED MUSIC VIDEOS, FILMS AND TELEVISION SHOWS “ALL-U-CAN-EAT” VIDEO INTEGRATED (+ PPV, ETC) ADDITIONAL CONTENTS NO OTHER CONTENT BESIDES THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; SERVICE’S/PARTNER’S ADS RELATED GENERAL CONTENT WITH THE SERVICE’S CHANNEL; PARTNERS CONTENT; ADVERTISEMENT; SERVICE’S/PARTNER’S ADS; “POST YOUR ADS HERE” PORTABILITY WEB WEB; DESKTOP WEB; DESKTOP MOBILE DEVICES WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA WEB; DESKTOP; MOBILE DEVICES; SOCIAL MEDIA; OTHER EMERGING POSSIBILITIES (CAR, ETC) PAYMENT FREE PAY FOR INDIVIDUAL SONG LISTENED ON ONLINE STREAM OR DOWNLOADED TRACK BUY X SONGS TO LISTEN ON ONLINE STREAM OR TO DOWNLOAD PAY FOR PREDEFINED USAGE TIME OF THE DOWNLOAD SERVICE/ONLINE STREAM SERVICE FREEMIUM (FREE + PREMIUM SERVICE OPTION) EMPOWERED CONSUMER’S BEHAVIOR INTEROPERABILITY & OWNERSHIP SEEKERS “CONTENT ACESS” SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS “CONTENT ACESS”; INTEROPERABILITY & OWNERSHIP SEEKERS INTERACTIVE EXPERIENCE SEEKERS
  26. 26. Unfulfilled Questions TheMusicIndustry • How many people want to be part of the Music Industry? • Is there a methodology to finding new talent in the Music Industry? • How do we give musicians a chance (better than YOUTUBE) to show their talent to Music Industry people? SOME QUESTIONS WE’LL NEVER KNOW THE ANSWERS TO: Allan Cabral de Sa External Researcher in Music Industry
  27. 27. Music Talent Presentation What about… TheMusicIndustry • Interoperability • Social Network • History matters • Simplicity • Meaning & Experience > Volume • Apps • Originality • Strong Branded • Related Advertisement • Exposure = Prize • Make Sense > Make Noise • High Mass Collaborative • Quality & Participation • Performance Indicators • Opinion Formers • Privilege consumers • Record Label Connection • Cloud • How will you collaborate?” Allan Cabral de Sa External Researcher in Music Industry
  28. 28. Music Talent Presentation What about… TheMusicIndustry • Online Platform • Interoperability • Social Network • History matters • Simplicity: “It just works. • Meaning & Experience > Volume • Apps • Originality • Strong Branded • Related Advertisement • Make Sense > Make Noise • High Mass Collaborative • Quality & Participation • Performance Indicators • Opinion Formers • Privilege consumers • Record Label Connection • Cloud • ˜How will you collaborate?˜ • Exposure = Prize DAVE KUSEK point of views – CEO Berklee College of Music • Promote yourself on existing platforms • “How do you package yourself?” • Creating a brand is just basic • How do artists take themselves to market? • Talent development from music to market • Exposure is a top key-concern in the Music Business • There are too many people to be randomly discovered • Position yourself on the right way: you have to be awesome Allan Cabral de Sa External Researcher in Music Industry
  29. 29. Unfulfilled Questions TheMusicIndustry • How many people want to be part of the Music Industry? • Is there a methodology to finding new talent in the Music Industry? • How do we give musicians a chance (better than YOUTUBE) to show their talent to Music Industry people? SOME QUESTIONS WE’LL NEVER KNOW THE ANSWERS TO: Allan Cabral de Sa External Researcher in Music Industry

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