musicHUB is a web platform that aims to bring together independent bands with their fans by giving them all the tools necessary to promote themselves including an profitable way to sell their digital content online. So why a music band will like or need to sign up for musicHUB?
It’s easy. To achieve their dream of success, having a worldwide fan base to fill concerts and spread their music and ideals. Sounds a bit like a fairy tale, knowing that only few bands succeed, that you have to have amazing skill or just luck that a big label put their trust in you. But if bands really wanted to dedicate fully on their artistic career, what are the problems keeping them from succeeding?
See, bands are a lot like start-ups. They have a unique skill (unfair advantage) that aims the lack of new music (problem) of a certain style to people (market). For that they need to create a valuable product (music) in order to sell it. And as many start-up they need both money plus fame in order to expand themselves from a couple of friends that play in pubs, to international artists. The achievement of these goals can create a virtuous cycle that could launch their careers to new frontiers. So how can we help bands enter this virtuous cycle?
By joining two massively effective tools the web can offer us. One is social media, in which a big fan base can be created by means of comments that people made and hopefully a viral phenomenon. Not only bands must expand your market but also be able to sell their product. This will enable the bands to create more and better music, increasing their fans and thus making more money.
That’s from the customers point of view. Now we’ll look upon what makes musicHUB a valuable business. This top-down estimations of the market size based on digital music sales, considering profits for muscHUB as 10% of the music sales. It was done in a very conservative approach. What can be observed is that Chile isn’t a valuable market for this project, unless the customers dynamics in the adquisition of music is varied. But still is a good market to test the model and get a big user databse in order expand to more profitable markets such us the US. And the reach is to be able to include mainstream musicians that like our model (itunes charge 30%) and so to reach to the number on top of the funnel.
So binding it all up, the business model for initial stages will look like this. Prove the the model in Chile focusing in expanding the number of users. With them attract investors and media in order to expand to other markets that can be both the US and/or the UK where music sales provide more profit.
So what will include this marvelous tool for bands Interface Webpage Smartphone App Paying Method Paypal Artists owes musicHUB Special Features (Social) Filtered News Feed Event Searcher Song Rater Facebook/Myspace sync
It’s essential at first to talk directly with bands, explaining to them the advantages of following the musicHUB model. They have their own fan base, that should be encourage by the band to participate. Once there, the same platform should encourage, by means of games and social interaction that fans from certain bands become fans of similar ones. Having a cool and functional product, where users get to know new bands is useful so they can spread the word. In another stage or lines marketing, it’s important to first spread the word in specialized web sites, so to incur in the least amount of costs. Then it will be able to broadcast the concept in massive media, to then narrowcast it in different concerts and events where a more incisive type of advertisement can be able to achieve.
The competition in the music business presents two different approaches. One is social media, as facebook and myspace offer with their bandpages. The other is the sale of digital content, just as record store is. But now imagine that in the same record store, instead of being a random sales person, your artist is the one that sell to you the music, giving their total feedback for their product. It changes the experience, and that’s what musicHUB is aiming to. Providing the space for a direct connection between bands and fans.