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How Beyoncé
disrupts the Music
Industry

Insights in how Beyoncé disrupts the Music
Industry by introducing a traditional ...
TH
13

ON DECEMBER
2013 BEYONCÉ
LAUNCHES HER NEW
ALBUM ON ITUNES
AN ALBUM ON ITUNES?
AN ALBUM ON
ITUNES!
HER FULL ALBUM
WHY WOULD SHE DO
THAT?
WHAT CAN WE
LEARN FROM
BEYONCÉ?
FIRST TAKE A LOOK
AT THE MUSIC
INDUSTRY
A DETAILED ANALYSIS
SEVERAL
QUESTIONS…
WHAT

DOES THE
MARKET LOOK
LIKE?
A DYNAMIC MARKET
A GLOBAL INDUSTRY
CHARACTERIZED BY
MANY PLAYERS AND
FIERCE COMPETITION
A PRODUCT OR SERVICE
WITH A MASS MARKET
POTENTIAL
THE ROLE OF MUSIC IN PEOPLE’S LIVES
“Music is something most people
love, that no one dislikes and that
touches everyone t...
A GLOBAL INDUSTRY
SOMETHING FOR
EVERYONE…
REMEMBER THEM?
THE CREATIVE
GENIUS
LOT’S OF GOOD
ADVISORS
ENOUGH PLAYERS
TECHNOLOGY
ADVANCEMENTS
MORE MUSIC THAN A SINGLE STORE
UNDERSTAND THE
CONTEXT…
DECLINING SALES IN
2009
GLOBAL MUSIC SALES

Global&music&sales&&
(physical)and)digital))
excluding)VAT)
1997:)38)billion)USD)
2009:)17)billion)USD...
WHO

ARE THE
PLAYERS?
WHO CREATES
VALUE IN THE
MUSIC INDUSTRY?
WE NEED TO
UNDERSTAND THE
VALUE CHAIN
RECORD
COMPANIES?
WHO RECORD, PRODUCE, PUBLISH,
DISTRIBUTE AND MARKET MUSIC?
SHOPS?
WHO AGGREGATE AND SELL MUSIC?
DESIGNING BETTER BUSINESSES
PLAYERS?
WHO AGGREGATE AND STREAM
MUSIC?
ARTISTS?
WHO WRITE AND SING?
OR FANS?
WHO LISTEN AND EXPERIENCE
MUSIC?
SO LET’S SEE…
HOW

THEY EACH
ADD VALUE?
WHAT DIFFERENT
BUSINESS MODELS
EXIST IN THE
INDUSTRY?
LET’S LOOK AT 5
PLAYERS AND THEIR
MODELS…
A RECORD COMPANY
THE BIG FOUR
1 MAIN ACTIVITY
THE RECORD
COMPANY BUSINESS
MODEL
THE RECORD COMPANY
DISTRIBUTION
CHANNELS

MARKETING AND
PROMOTION

MANUFACTURERS

DETECTING AND
BUILDING TALENT

HITS AND
...
IN COSTS YOU MISSED:
‘OVERPAID EXECUTIVES’…’
MICHAEL SMELLIE, FORMER COO SONY MUSIC
MICHAEL SMELLIE
RECORD COMPANIES
DID NOT KNOW
THEIR CUSTOMERS
COMMERCIAL BREAK
We help companies innovate like start-ups
Consulting and Training

DESIGNING BETTER BUSINESSES
<advertising>

WE HELP COMPANIES INNOVATE LIKE
START-ups
through consulting and training
PIRACY
THE DOMINATING PHENOMENON
SORRY, NOT THESE GUYS
THIS IS WHAT WE BELIEVED…
THE BIG DISCUSSION
THE PIRACY
BUSINESS MODEL
THE PIRACY MODEL
ILLEGAL
DEVELOPERS

UPLOAD

NETWORK OF
COMMITTED USERS

DOWNLOAD

PEER TO PEER

MASS
MARKET

ALL THE
WORL...
IS PIRACY A
SUSTAINABLE
MODEL?
ITUNES
ONE BIG BELIEVER
“Rock)and)Roll)will)
never)die.)It)is,)
however,)being)
reborn.”)
A NEW SUCCESFUL
BUSINESS MODEL
Very)successful)
STEVE JOBS ANNOUNCED IN HIS
"IT'S SHOWTIME" KEYNOTE
THAT APPLE HAD
88% OF THE LEGAL
U.S. MUSIC DOWNLOAD MARKET
ON SEPTEMBE...
THE ITUNES
BUSINESS MODEL
THE ITUNES MODEL
RECORD LABELS

HARDWARE/
SOFTWARE DESIGN

OEM

MARKETING & SALES
SUPPLY CHAIN
MANAGEMENT

ITUNES SOFTWARE...
UNBUNDLING THE
ALBUM OR CD
COMBINING
SOFTWARE AND
HARDWARE
SPOTIFY
THEIR VISION WAS
PUT ON PAPER
DESIGNING BETTER BUSINESSES
“We)are)going)to))
provide)music)to)everyone))
(any)time,)any)place))
for)free)
in)a)legal)way”)
THE SPOTIFY
BUSINESS MODEL
THE SPOTIFY MODEL
DISTRIBUTION
CHANNELS

MARKETING AND
PROMOTION

MANUFACTURERS

DETECTING AND
BUILDING TALENT

AUTOMATED ...
THE MODEL VISUALIZED
WILL THEY SURVIVE
BY CHARGING TOO
FEW MONEY FOR
MUSIC?
THE ARTIST
THIS IS THE DUTCH SINGER HIND
“I just want to sing and
perform.”
Crowd-funding paves the
way for the independent
artist
€ 40.000
11 days
THE ARTIST
BUSINESS MODEL
(INDEPENDENT)
THE ARTIST MODEL
MUSICIANS

SONGWRITING

SONGWRITERS

SINGING &
PERFORMING

PRODUCERS

PROMOTION

CD PRODUCTION

MUSIC, VI...
A TOUGH MODEL
WHEN ‘EVERYBODY’
CAN BE A SINGER
NOWADAYS…
A FEW MAJOR
SHIFTS IN THE
MUSIC INDUSTRY
COPYRIGHT
A FRAGMENTED
COPYRIGHT INDUSTRY
MADE IT IMPOSSIBLE
TO SET UP LEGAL,
SUSTAINABLE
BUSINESS MODELS.
RISE OF
PIRACY
THE GAP OF
LEGITIMATE
BUSINESS MODELS
FOR CUSTOMERS
PAVED THE WAY FOR
THE RISE OF PIRACY.
UNBUNDLING
OF THE
ALBUM
THE UNBUNDLING OF
THE ALBUM KILLED
SIGNIFICANT REVENUE
STREAMS IMPACTING
THE WHOLE MUSIC
INDUSTRY.
MUSIC
DISTRIBUTION
FROM YOUR LOCAL SHOP
TO ‘FREE’ PLAYERS
RESULTING IN A
BUSINESS MODEL
PATTERN…
FROM
OWNERSHIP
TO ACCESS
FROM OWNERSHIP
TO ACCESS
TECHNOLOGY
DEVELOP
MENT
FROM HERE
TO HERE
SO WHAT DID
BEYONCÉ LEARN?
VERY SIMPLE
UNDER
STAND
SHE UNDERSTANDS
THE CURRENT
FRAGMENTED
INDUSTRY
HOW ARTISTS
STRUGGLE TO MAKE
MONEY
LEARNING
SHE LEARNED ALL
ABOUT OTHER
BUSINESS MODELS
AND
RE-INTRODUCED
THE ALBUM!
SO…
WILLING
NESS
TO PAY
BEYONCÉ
KNOW(LE)S…
WHAT HER FANS
ARE WILLING TO PAY
FOR…
15,99
USD
I AM A BIG FAN OF
BEYONCÉ NOW ALSO
FOR HER BUSINESS
MODEL SKILLS!
BEYONCÉ THANKS
HERE FANS…
WARNING!
WE WORK ON GLOBAL BUSINESS MODEL CASE STUDIES FOR OUR TRAINING COURSES AND STRATEGY
WORK. IN THE COMING YEAR WE W...
<advertising>

WE HELP COMPANIES INNOVATE LIKE
START-ups
through consulting and training
By patrick@businessmodelsinc.com
CEO Business Models Inc.

DESIGNING BETTER BUSINESSES
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
How Beyonce Disrupts The Music Industry
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How Beyonce Disrupts The Music Industry

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Beyonce is not only an artist & entertainer, she is also a strategist. Through analyzing business models in the music industry like iTunes, record company, piracy, spotify, artists we show how Beyonce re-introduced the business model of the classic album. A classic. Beyonce rocks.

How Beyonce Disrupts The Music Industry

  1. How Beyoncé disrupts the Music Industry Insights in how Beyoncé disrupts the Music Industry by introducing a traditional business model in a new fashion. Amsterdam, January 2014
  2. TH 13 ON DECEMBER 2013 BEYONCÉ LAUNCHES HER NEW ALBUM ON ITUNES
  3. AN ALBUM ON ITUNES?
  4. AN ALBUM ON ITUNES!
  5. HER FULL ALBUM
  6. WHY WOULD SHE DO THAT?
  7. WHAT CAN WE LEARN FROM BEYONCÉ?
  8. FIRST TAKE A LOOK AT THE MUSIC INDUSTRY
  9. A DETAILED ANALYSIS
  10. SEVERAL QUESTIONS…
  11. WHAT DOES THE MARKET LOOK LIKE?
  12. A DYNAMIC MARKET A GLOBAL INDUSTRY CHARACTERIZED BY MANY PLAYERS AND FIERCE COMPETITION
  13. A PRODUCT OR SERVICE WITH A MASS MARKET POTENTIAL
  14. THE ROLE OF MUSIC IN PEOPLE’S LIVES “Music is something most people love, that no one dislikes and that touches everyone throughout their lives” BrandAmp)study,)Millward)Brown,)2007)
  15. A GLOBAL INDUSTRY
  16. SOMETHING FOR EVERYONE…
  17. REMEMBER THEM?
  18. THE CREATIVE GENIUS
  19. LOT’S OF GOOD ADVISORS
  20. ENOUGH PLAYERS
  21. TECHNOLOGY ADVANCEMENTS
  22. MORE MUSIC THAN A SINGLE STORE
  23. UNDERSTAND THE CONTEXT…
  24. DECLINING SALES IN 2009
  25. GLOBAL MUSIC SALES Global&music&sales&& (physical)and)digital)) excluding)VAT) 1997:)38)billion)USD) 2009:)17)billion)USD)
  26. WHO ARE THE PLAYERS?
  27. WHO CREATES VALUE IN THE MUSIC INDUSTRY?
  28. WE NEED TO UNDERSTAND THE VALUE CHAIN
  29. RECORD COMPANIES? WHO RECORD, PRODUCE, PUBLISH, DISTRIBUTE AND MARKET MUSIC?
  30. SHOPS? WHO AGGREGATE AND SELL MUSIC?
  31. DESIGNING BETTER BUSINESSES
  32. PLAYERS? WHO AGGREGATE AND STREAM MUSIC?
  33. ARTISTS? WHO WRITE AND SING?
  34. OR FANS? WHO LISTEN AND EXPERIENCE MUSIC?
  35. SO LET’S SEE…
  36. HOW THEY EACH ADD VALUE?
  37. WHAT DIFFERENT BUSINESS MODELS EXIST IN THE INDUSTRY?
  38. LET’S LOOK AT 5 PLAYERS AND THEIR MODELS…
  39. A RECORD COMPANY
  40. THE BIG FOUR
  41. 1 MAIN ACTIVITY
  42. THE RECORD COMPANY BUSINESS MODEL
  43. THE RECORD COMPANY DISTRIBUTION CHANNELS MARKETING AND PROMOTION MANUFACTURERS DETECTING AND BUILDING TALENT HITS AND WANNABE HITS PORTFOLIO OF STAR ARTISTS MASS MARKET RETAILERS TV COPYRIGHT CONTENT RADIO DIGITAL MARKETING AND PROMOTION SUBSIDIZING UNSUCCESFUL ARTISTS ROYALTIES HUGE SALE FROM FEW ARTISTS TOURS AND CONCERTS MERCHAND ISING
  44. IN COSTS YOU MISSED: ‘OVERPAID EXECUTIVES’…’ MICHAEL SMELLIE, FORMER COO SONY MUSIC
  45. MICHAEL SMELLIE
  46. RECORD COMPANIES DID NOT KNOW THEIR CUSTOMERS
  47. COMMERCIAL BREAK
  48. We help companies innovate like start-ups Consulting and Training DESIGNING BETTER BUSINESSES
  49. <advertising> WE HELP COMPANIES INNOVATE LIKE START-ups through consulting and training
  50. PIRACY
  51. THE DOMINATING PHENOMENON
  52. SORRY, NOT THESE GUYS
  53. THIS IS WHAT WE BELIEVED…
  54. THE BIG DISCUSSION
  55. THE PIRACY BUSINESS MODEL
  56. THE PIRACY MODEL ILLEGAL DEVELOPERS UPLOAD NETWORK OF COMMITTED USERS DOWNLOAD PEER TO PEER MASS MARKET ALL THE WORLDS MUSIC USERSKILLS DIGITAL COMMITMENT HOSTING ADVERTISING TRAFFIC
  57. IS PIRACY A SUSTAINABLE MODEL?
  58. ITUNES
  59. ONE BIG BELIEVER
  60. “Rock)and)Roll)will) never)die.)It)is,) however,)being) reborn.”)
  61. A NEW SUCCESFUL BUSINESS MODEL
  62. Very)successful)
  63. STEVE JOBS ANNOUNCED IN HIS "IT'S SHOWTIME" KEYNOTE THAT APPLE HAD 88% OF THE LEGAL U.S. MUSIC DOWNLOAD MARKET ON SEPTEMBER 12, 2006
  64. THE ITUNES BUSINESS MODEL
  65. THE ITUNES MODEL RECORD LABELS HARDWARE/ SOFTWARE DESIGN OEM MARKETING & SALES SUPPLY CHAIN MANAGEMENT ITUNES SOFTWARE SEAMLESS MUSIC EXPERIENCE AND COOL DESIGN (MUSIC AND SOFTWARE) IPOD HARDWARE APPLE STORE APPLE BRAND APPLE.COM DESIGNERS SUBSIDIZING UNSUCCESFUL ARTISTS ITUNES STORE RETAIL STORE CONTENT & AGREEMENTS MARKETING AND PROMOTION MASS MARKET ROYALTIES HUGE SALE FROM FEW ARTISTS TOURS AND CONCERTS MERCHAND ISING
  66. UNBUNDLING THE ALBUM OR CD
  67. COMBINING SOFTWARE AND HARDWARE
  68. SPOTIFY
  69. THEIR VISION WAS PUT ON PAPER
  70. DESIGNING BETTER BUSINESSES
  71. “We)are)going)to)) provide)music)to)everyone)) (any)time,)any)place)) for)free) in)a)legal)way”)
  72. THE SPOTIFY BUSINESS MODEL
  73. THE SPOTIFY MODEL DISTRIBUTION CHANNELS MARKETING AND PROMOTION MANUFACTURERS DETECTING AND BUILDING TALENT AUTOMATED ONLINE ADVERTISING 3RD PARTIES API ADVERTISERS COMMUNITIES PORTFOLIO OF STAR ARTISTS COPYRIGHT CONTENT MARKETING AND PROMOTION SUBSIDIZING UNSUCCESFUL ARTISTS ACCESS TO MUSIC VIA DOWNLOADING AND STREAMING ROYALTIES ADVERTISING INTERNET + MOBILE GLOBAL MUSIC FANS INTERNET + PC FREE SUBSCRIPTION
  74. THE MODEL VISUALIZED
  75. WILL THEY SURVIVE BY CHARGING TOO FEW MONEY FOR MUSIC?
  76. THE ARTIST
  77. THIS IS THE DUTCH SINGER HIND
  78. “I just want to sing and perform.”
  79. Crowd-funding paves the way for the independent artist
  80. € 40.000 11 days
  81. THE ARTIST BUSINESS MODEL (INDEPENDENT)
  82. THE ARTIST MODEL MUSICIANS SONGWRITING SONGWRITERS SINGING & PERFORMING PRODUCERS PROMOTION CD PRODUCTION MUSIC, VIDEOS, CONCERTS MUSIC FANS ARTWORK & STUDIO MANAGEMENT TECH & TOUR TEAM RADIO & TV BRAND HIND ONLINE PLATFORMS MUSIC ARCHIVE BAND HIND.COM BRAND EXPERIENCE EVENTS INVESTMENTS SALARIES IT, WEBSITE, TRAVEL ETC. CONCERTS MUSIC SALES MERCHAND ISING
  83. A TOUGH MODEL WHEN ‘EVERYBODY’ CAN BE A SINGER NOWADAYS…
  84. A FEW MAJOR SHIFTS IN THE MUSIC INDUSTRY
  85. COPYRIGHT
  86. A FRAGMENTED COPYRIGHT INDUSTRY MADE IT IMPOSSIBLE TO SET UP LEGAL, SUSTAINABLE BUSINESS MODELS.
  87. RISE OF PIRACY
  88. THE GAP OF LEGITIMATE BUSINESS MODELS FOR CUSTOMERS PAVED THE WAY FOR THE RISE OF PIRACY.
  89. UNBUNDLING OF THE ALBUM
  90. THE UNBUNDLING OF THE ALBUM KILLED SIGNIFICANT REVENUE STREAMS IMPACTING THE WHOLE MUSIC INDUSTRY.
  91. MUSIC DISTRIBUTION
  92. FROM YOUR LOCAL SHOP
  93. TO ‘FREE’ PLAYERS
  94. RESULTING IN A BUSINESS MODEL PATTERN…
  95. FROM OWNERSHIP TO ACCESS
  96. FROM OWNERSHIP
  97. TO ACCESS
  98. TECHNOLOGY DEVELOP MENT
  99. FROM HERE
  100. TO HERE
  101. SO WHAT DID BEYONCÉ LEARN?
  102. VERY SIMPLE
  103. UNDER STAND
  104. SHE UNDERSTANDS THE CURRENT FRAGMENTED INDUSTRY
  105. HOW ARTISTS STRUGGLE TO MAKE MONEY
  106. LEARNING
  107. SHE LEARNED ALL ABOUT OTHER BUSINESS MODELS
  108. AND RE-INTRODUCED THE ALBUM!
  109. SO…
  110. WILLING NESS TO PAY
  111. BEYONCÉ KNOW(LE)S…
  112. WHAT HER FANS ARE WILLING TO PAY FOR…
  113. 15,99 USD
  114. I AM A BIG FAN OF BEYONCÉ NOW ALSO FOR HER BUSINESS MODEL SKILLS!
  115. BEYONCÉ THANKS HERE FANS…
  116. WARNING! WE WORK ON GLOBAL BUSINESS MODEL CASE STUDIES FOR OUR TRAINING COURSES AND STRATEGY WORK. IN THE COMING YEAR WE WILL CONTINUE TO PUBLISH ON THE MUSIC INDUSTRY ESPECIALLY IN THE ELECTRONIC DANCE MUSIC PROJECT ‘OPEN HOUSE’ IN COOPERATION WITH ID&T AND VARIOUS DJ’S.
  117. <advertising> WE HELP COMPANIES INNOVATE LIKE START-ups through consulting and training
  118. By patrick@businessmodelsinc.com CEO Business Models Inc. DESIGNING BETTER BUSINESSES

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