How Sony MusicHardwired Fans& Followers IntoIts Businessad:tech / September 2012
Million
“We onlyrealised wehad anaudiencewhen theystartedstealingfrom us”
“First weopen a bottle   of tequilathen we light   a doobie”
The digital revolution       has turned our      business model      upside-down…   …and forced us to    think about our
The first step was creating a segmentationHardwiring Fans & Followers | slide 6
The Sony Music SegmentationHardwiring Fans & Followers | slide 7
But the audiencestill didn’t feelalive in theorganisation
…so we createdSony Music Backstage
Sony Music Backstage supports 3 business objectives Better products &                       More effective    More audienc...
How we have created better products and servicesProject Phoenix: how do we sell more back catalogue digitally?Hardwiring F...
How we have created better products and services      Project Phoenix: Music that takes you to a better place      INSIGHT...
How we have created better products and services      Project Phoenix: Music that takes you to a better placeHardwiring Fa...
How we have created better products and services      Project Phoenix: Music that takes you to a better placeHardwiring Fa...
How we have created better products and services                   Other evidence of strategic impact…                    ...
How we have created more effective marketing                         effective marketingHardwiring Fans & Followers | slid...
How we have created more effective marketing                         effective marketingHardwiring Fans & Followers | slid...
How we have created more effective marketingHow we have created more effective marketingHardwiring Fans & Followers | slid...
How we have created more effective marketing                     Sony Music Backstage has                      inputted on...
How we have created more audience focused cultureHow                 a more audience focused cultureHardwiring Fans & Foll...
How we have created more audience focused cultureHow                 a more audience focused cultureHardwiring Fans & Foll...
The digitalrevolution hasbeen a blessing indisguise!
Hardwiring Fans & Followers | slide 23
Benefit 2: Develop ideas iterativelyHardwiring Fans & Followers | slide 24
Hardwiring Fans & Followers | slide 25
Hardwiring Fans & Followers | slide 26
How Sony Music Hardwired Fans And Followers Into Its Business?
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How Sony Music Hardwired Fans And Followers Into Its Business?

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ad:tech London 2012

How Sony Music Hardwired Fans And Followers Into Its Business?

Martin Vovk, Insight Manager, Sony Music
Tom Hoy, Senior Consultant, Promise

Published in: Business
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  • Hello I’m Martin (job title), this is Tom (job title) Hands up game – that’s why it’s important! The digital revolution hit music first….
  • Fred spiel to introduce slide “and that’s why we’re all fucked”
  • 1,000 people representative of the Sony Music Segmentation Made to feel like insiders Invited to make a real contribution Take part in brainstorms, polls and live discussions
  • Creative group offer marketing services to Sony’s labels: Syco, RCA, Columbia, Epic They have three overarching objectives which Sony Music Backstage supports Better products and services: making money from their musical assets in new and innovative ways More effective marketing: increasing the effectiveness of existing marketing practices around new releases More audience focused culture: softer objective to make the whole organisation thinking about the audience in everything they do
  • Sony Music have huge back catalogue of music, from George Micheal, to Michael Jackson and Jimmi Hendrix Sales of this have traditionally been driven by the ‘HMV man’ – the middle aged man who ducks into HMV on whim and buys two or three old albums This accounts for a huge proportion of sales With music retail space under increasing threat this could potentially create a big hole in Sony revenues We were tasked with moving ‘HMV man’ online We conducted a project on Backstage with over-35s to find out what would motivate them to move online Members told us about the drivers and barriers and also came up with their own ideas for new products and services (see George Michael iTunes page) A number of innovations have come from Project Phoenix One that launched recently is a new iTunes-based campaign: Music that takes you to a better place The campaign was created based on 3 insights we uncovered. Can’t go into precise detail, but as an overview: Purchases for catalogue are triggered by a memory from the past Discounts aren’t perceived to exist for catalogue online in the way they do in HMV When you make one music purchase you are likely to enter into a ‘purchase frenzy’ and the likelihood you will buy a second and third hugely increases
  • Sony Music have huge back catalogue of music, from George Micheal, to Michael Jackson and Jimmi Hendrix Sales of this have traditionally been driven by the ‘HMV man’ – the middle aged man who ducks into HMV on whim and buys two or three old albums This accounts for a huge proportion of sales With music retail space under increasing threat this could potentially create a big hole in Sony revenues We were tasked with moving ‘HMV man’ online We conducted a project on Backstage with over-35s to find out what would motivate them to move online Members told us about the drivers and barriers and also came up with their own ideas for new products and services (see George Michael iTunes page) A number of innovations have come from Project Phoenix One that launched recently is a new iTunes-based campaign: Music that takes you to a better place The campaign was created based on 3 insights we uncovered. Can’t go into precise detail, but as an overview: Purchases for catalogue are triggered by a memory from the past Discounts aren’t perceived to exist for catalogue online in the way they do in HMV When you make one music purchase you are likely to enter into a ‘purchase frenzy’ and the likelihood you will buy a second and third hugely increases
  • A new campaign was developed which brought these three insight together YouTube pre-rolls were used to play on discounts and trigger memories
  • Sony Music have huge back catalogue of music, from George Micheal, to Michael Jackson and Jimmi Hendrix Sales of this have traditionally been driven by the ‘HMV man’ – the middle aged man who ducks into HMV on whim and buys two or three old albums This accounts for a huge proportion of sales With music retail space under increasing threat this could potentially create a big hole in Sony revenues We were tasked with moving ‘HMV man’ online We conducted a project on Backstage with over-35s to find out what would motivate them to move online Members told us about the drivers and barriers and also came up with their own ideas for new products and services (see George Michael iTunes page) A number of innovations have come from Project Phoenix One that launched recently is a new iTunes-based campaign: Music that takes you to a better place The campaign was created based on 3 insights we uncovered. Can’t go into precise detail, but as an overview: Purchases for catalogue are triggered by a memory from the past Discounts aren’t perceived to exist for catalogue online in the way they do in HMV When you make one music purchase you are likely to enter into a ‘purchase frenzy’ and the likelihood you will buy a second and third hugely increases
  • “ Every week during the show we would be briefed on how members of the community were reacting to different acts. We knew which segments were saying what so we could quickly form an idea of how each artist should be positioned. By the time the show finished we already had a keen sense for how each artist could be marketed” Mark Hardy
  • 225 Sales
  • Creating an audience focussed culture is a softer objective We have created various initiatives over the last 1.5 years to bring the audience into the room at Sony and change perceptions internally This is the community wall – a live stream of comments from the Backstage community being beamed into the Sony music office Community wall has been of varying success – we’ve had to shut it down due to some upset managers!!
  • Another example is the Sony Music Backstage birthday party: We invited 50 of the best and most committed members of the backstage community into the Sony Music offices They met members of the Sony Music team, played games and we provided them with feedback on the impact they’d been having internally This is quite an unprecedented occurrence in the Music Industry!!
  • How Sony Music Hardwired Fans And Followers Into Its Business?

    1. 1. How Sony MusicHardwired Fans& Followers IntoIts Businessad:tech / September 2012
    2. 2. Million
    3. 3. “We onlyrealised wehad anaudiencewhen theystartedstealingfrom us”
    4. 4. “First weopen a bottle of tequilathen we light a doobie”
    5. 5. The digital revolution has turned our business model upside-down… …and forced us to think about our
    6. 6. The first step was creating a segmentationHardwiring Fans & Followers | slide 6
    7. 7. The Sony Music SegmentationHardwiring Fans & Followers | slide 7
    8. 8. But the audiencestill didn’t feelalive in theorganisation
    9. 9. …so we createdSony Music Backstage
    10. 10. Sony Music Backstage supports 3 business objectives Better products & More effective More audience services marketing focussed cultureHardwiring Fans & Followers | slide 10
    11. 11. How we have created better products and servicesProject Phoenix: how do we sell more back catalogue digitally?Hardwiring Fans & Followers | slide 11
    12. 12. How we have created better products and services Project Phoenix: Music that takes you to a better place INSIGHT 1 INSIGHT 2 INSIGHT 3Catalogue purchases are Once you buy one track, There are no online triggered by fond you’re very likely to buy a discounts to speak of memories secondHardwiring Fans & Followers | slide 12
    13. 13. How we have created better products and services Project Phoenix: Music that takes you to a better placeHardwiring Fans & Followers | slide 13
    14. 14. How we have created better products and services Project Phoenix: Music that takes you to a better placeHardwiring Fans & Followers | slide 14
    15. 15. How we have created better products and services Other evidence of strategic impact… Developed aEstablished new new D2C Created a new 3 creative strategy (selling tier pre-ordering guidelines for directly through strategy music videos artist websites)Hardwiring Fans & Followers | slide 15
    16. 16. How we have created more effective marketing effective marketingHardwiring Fans & Followers | slide 16
    17. 17. How we have created more effective marketing effective marketingHardwiring Fans & Followers | slide 17
    18. 18. How we have created more effective marketingHow we have created more effective marketingHardwiring Fans & Followers | slide 18
    19. 19. How we have created more effective marketing Sony Music Backstage has inputted on more than 100 releases since its launchHardwiring Fans & Followers | slide 19
    20. 20. How we have created more audience focused cultureHow a more audience focused cultureHardwiring Fans & Followers | slide 20
    21. 21. How we have created more audience focused cultureHow a more audience focused cultureHardwiring Fans & Followers | slide 21
    22. 22. The digitalrevolution hasbeen a blessing indisguise!
    23. 23. Hardwiring Fans & Followers | slide 23
    24. 24. Benefit 2: Develop ideas iterativelyHardwiring Fans & Followers | slide 24
    25. 25. Hardwiring Fans & Followers | slide 25
    26. 26. Hardwiring Fans & Followers | slide 26

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