Download to read offline
Uploaded byGREE Ventures
OAP-Team Grayscale
TommyJams is a platform that connects artists, venues, fans and promoters in the Indian live music scene. It aims to address issues such as high costs of hosting gigs that limit venues, and difficulties artists face in finding gigs. The business model involves the website facilitating gig bookings and marketing, with revenue from fees, advertising and premium listings. Market research estimates the initial annual market size at 36,300 transactions worth $720,000. Industry experts express optimism about the growth of live music in India. Risks include venues' reluctance and lack of contracts between parties.
OAP-Team Grayscale
- 1.
- 2. Promoters Venues Tommy Jams Artists Fans
- 3. Business Model Website Promoters & Marketing Marketing Venues launch Campus Events Venues Advertising gigs Host Gigs Event Managers Promoters Artists find Gigs Advertisers Artists Fans follow Tour Managers Artist Fans Web-Dev Team Cash Live Shows Website Graphics Designers Advertisers explosion Marketing Subscription Fees Web Development Advertising
- 4. Old Hypothesis Given a chance, Venues would like to host more gigs. Hard Rock Café Hyderabad, India Venues would want to go and book bands for live shows. Findings HRC books bands via OML, an Event Management Company. This makes it convenient and hassle-free, but they have to pay the event managers. Turnout for the gig depends on the popularity of the artist in the city. New Hypothesis Costs are the limiting factor for hosting We interviewed Mr. Wasim, more gigs. Operations Manager, Hard Rock Café, regarding the live music Venues can also share turnout fees with scene in India, and the the band: Include this in the gig booking. problems that they are facing. There should be a way to restrict the Hard Rock Café currently hosts incoming applications to good artists for a live band every Thursday. premium venues: Introduce the concept of premium gigs.
- 5. Old Hypothesis Venues currently not hosting gigs, but having the potential, will want to do it N-Convention through our solution. Hyderabad, India Findings Venues like N Convention would host a gig only if they see money in it, since their main business is not on the food and beverage side, but in providing the event space. N-Convention does not generally search for artists. Artists approach them. The money earned would be decent. The promotion of the venue for future bookings would be better. New Hypothesis We interviewed Mr. Arjun, Manager, N-Convention, Venues to host artists: Get them good regarding the live music scene bands at smaller fees. in India and whether they’ll want to enter the market. Venues are calling the shots right now: Allow venues to book a particular band. N-Convention currently hosts weddings and corporate events. They have also hosted a few big artists like Parikrama.
- 6. Old Hypothesis Venues that are currently not hosting gigs, but have the potential to do so, will T.G.I. Friday’s want to do it through our solution. Hyderabad, India The people coming to the venue want to see a live act. Findings T.G.I.Friday’s is a little reluctant to foray into live events space because it is an unknown territory. For nationwide changes, the corporate office needs to be contacted for such changes. The guests of the venue would like to see live events. New Hypothesis We interviewed Mr. Jai, Operations Manager, Some Sales-Pitch is required to convince T.G.I.Friday’s, regarding the live the venues of the benefits of live events. music scene in India and whether they’ll want to enter The inconvenience of bookings needs to the market. be removed. T.G.I. Friday’s currently hosts gigs in countries like US, but does not in India.
- 7. Old Hypothesis Venues approach bands to perform for them Jason Zachariah and book them for a certain amount. Director, Nathaniel Music School, India Bands have Band-Managers to find gigs for Band Member: Bhoomi, Allegro them. Fudge, Ceasar’s Palace Findings Bands are paid in two ways: Share of ticket sales or Fixed Amount. Most of the bands book gigs by: a) Contacting the venues (networking) b) Trying to register for a music festival Venues approach artists only when they are sure of recovering their costs. New Hypothesis Bands are booked at either fixed amounts or We interviewed Mr. Jason, for sharing of cover charges: Add this in the insights into the live music booking criteria. scene in India and his take on the growth opportunities both Venues rarely encourage normal bands as as a band member and as a they are apprehensive of crowd turnout: director of an acclaimed music Requires reduction of band booking costs for school. Venues Jason performs regularly in Bangalore along with teaching It is difficult for bands to contact and book students in his music school. gigs.
- 8. Old Hypothesis Campus Festivals are generally organized by Chaman Singh the student body. President, Student Council, Delhi College of Engineering (DCE), The festivals are budget crunched. University of Delhi Findings Both student council and faculty council are involved. Generally, an event manager is hired for the whole package and arranges for DJs, Artists, Bands and equipment. Artists are chosen more out of budget constraints than choice. The event management agencies cost a lot of extra money and require more time. New Hypothesis We interviewed Mr. Chaman, for learning how colleges choose If we provide better bands at the same the artists performing in their budget as that of an event management campus festivals and how do company, huge demand would be created. they currently book these artists. Users would like help on which artist to choose: Editor Rating + Helpline (to suggest Chaman, is the head of the student committee that the right choice based on requirement). organized Engifest 2012, an Both students and faculty are involved, so annual cultural festival of DCE. our marketing should touch both sectors.
- 9. Modified Business Model Marketing Website Venues launch Campus Events Gigs or book Host Gigs Venues Event Managers Marketing Brand-Sponsored Advertising Artists Events Helpline Promoters Advertisers Artists find Gigs Artists Tour Managers Fans follow Artists Fans Brand Sponsors Web-Dev Team Cash Live Shows Website Advertisers Graphics Designers Explosion Transaction Fees Marketing Advertising Web Development Premium Gigs
- 10. Market Research DJ Performances Band Peformances Music Festivals Campus Festivals Others 9,600 27,900 36,300 25,300 900 Initial Expected Market Size Market Size * Major Metropolitans of India, starting from Bangalore ** Assuming Value per Transaction = $20
- 11. Industry Quotes Brand Sponsors "Live music is a great way to build our engagement with our customers" - Bacardi India "Red Bull strongly believes in working in playgrounds where talent needs support, India has a huge pool of live acts.” - Red Bull Promoters "Our aim is to make India the hottest destination on the global music tourism scene." - Percept Ltd., hosts Sunburn Festival "Last November, there were 16 non-classical music concerts over one single weekend in Chennai alone.” - Unwind Centre Artists "When we started playing in the early '90s, there were hardly a couple of fests. Today there's been a mushrooming of these" - Subir Malik of Parikrama "What we are seeing is just the beginning." - Ashvin Mani Sharma of Jalebi Cartel "The talent is there, so is the audience. The time is right. All we need is the right place." - Anup Kutty of Menwhopause Industry Experts "India's music market could take the next big step in 2012 as live music goes mainstream, the internet gives more new artists a platform to strut their stuff and global artistes make a beeline to a country", Rahul Sachitanand, ET Bureau "Live music could grow at over 30% annually" - Sony Music “Internet plays a central role in the music industry's evolution" - Times Music
- 12. Risks and Competition Venues need more exposure to artists and live music. Venues restricting themselves to great artists only. No binding contract being formed between the two parties. Implications of cancellation of gigs. Availability of equipment and space in smaller venues.
- 13. Credits We wouldlike to thank Dr. Chuck Eesley, Venture-Lab Team & Stanford University for providing a world-class platform and an opportunity to learn the intricacies of Entrepreneurship. We would like to thank John Shapiro for his valuable guidance, tips and feedback.
Editor's Notes
- #4 Business Model