Business models in the music industry. A dynamic market, a global industry, characterized by many players and fierce competition. How does the music industry create, deliver and capture value? What different business models exist in the music industry?
PARTNER KEY OFFER CUSTOMER CUSTOMER NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS Marke:ng & promo:on Distribu:on channels Detec:ng & Mass market building talent Hits and wannabee hits KEY DISTRIBUTION RESOURCES CHANNELSManufacturers Por@olio of star TV Retailers ar:sts Copyrighted Radio Digital content COST STRUCTURE REVENUE STREAMSMarke:ng & Royalty Tours and Merchandising promo:on Subsidizing payments concerts Huge sales unsuccessful from a few ar:sts ar:sts’ albums
PARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS Upload Peer-‐to-‐peer Developers of illegal Download All the worlds applica:ons and soGware music Mass market KEY DISTRIBUTION RESOURCES CHANNELSA network of commiLed users User skills, interest and Digital commitment COST STRUCTURE REVENUE STREAMS
The Business Model of Spotify PARTNER KEY OFFER CUSTOMER CUSTOMERNETWORK ACTIVITIES RELATIONSHIPS SEGMENTS Pla@orm Automated development online and rela:onship Adver:sing Adver:sers maintenance Rightholders 3rd party APIs Communi:es (labels and publishers) KEY Access to DISTRIBUTION RESOURCES music via CHANNELS streaming and Global music Licensing download Internet + fans agreements services PC SoGware and Internet + Pla@orm and network mobile brand engineers COST STRUCTURE REVENUE STREAMS Subscrip:on Royal:es to Bandwith costs Ad fees fees PC + rightholders Subscrip:on mobile Salaries fees PC