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OHDIOO.COM:
MUSIC SERVICE PROPOSAL
INTRODUCTION
We want to think of a fresher way in approaching digital music – creating
a valuable music experience for consumers.
LOOKING AT MUSIC LISTENERS
MUSIC CONSUMPTION:
AN EVOLUTION
Vinyl records
Compact Disc
iPod, for playing
digital music
files
MC/Cassette
??
Purely digital
music: MP3, RBT,
ringtone, etc
THE MUSIC CONSUMER
...THEN...
Music Discovery | music listeners discovered music through
centralized media outlets; radio, TV, and magazines.
THE MUSIC CONSUMER
...THEN...
Music Access | music listeners received their music though
curated radio & TV programs, or had to buy the vinyl, cassette or
CD.
THE MUSIC CONSUMER
...NOW.
Music Discovery | information channels are much more
fragmented, bringing up the need of search engines and
discovery optimization techniques to sort through all the
information. Social networks also play a major role.
THE MUSIC CONSUMER
...NOW.
Music Access | access to music is not centralized to products
like cassettes or CDs anymore; 1 music file can be spread around
the world – free – with one click. Multiple music store options with
multiple services and payment options compete for the music
consumer's attention.
THE MUSIC CONSUMER
TOMORROW?
Music's Future? | music locker services? Music bundled with
other media and services? Hardware + media ecosystems?
Purchase access to 360 music experiences? Time will tell.
FORMING THE MUSIC SERVICE
MARKET ISSUES
Ownership
Copy Control
Multiple Music
Services
Digital Piracy
Copyright
Rental
Access Control
Market
Fragmentation
Content Sharing
Ignorance Of
Copyright
VS
EXISTING SERVICES
Arena Musik Indosat
Ringtones, RBT, wallpaper
(Paid)
Flexi Generation
Music download (Paid)
EXISTING SERVICES
IM:port Music Store
RBT, music download
Kapanlagi Music Store
Music download
EXISTING SERVICES
Langitmusik Telkomsel
Music download (Paid)
Melon
Music streaming, music
download (Paid)
EXISTING SERVICES
Arena Musik Indosat
Flexi Generation
Ovi Music
Music download (Paid)
Popmaya
music download (Ad-funded)
EXISTING SERVICES
Smartmusik
Music download (paid)
Souniq Music
Music streaming (free)
EXISTING SERVICES
Streamsation
Music streaming (paid)
Kongkoow
Music download (paid)
Question: how much revenue or
value have these services brought to
the market?
iTunes
INTERNATIONAL MARKETS
Success Stories
Industry Quotes
Pandora
Spotify
Amazon
Universal Music
boss: 'Streaming is
the future' (Wired UK)
Free music can pay as
well as paid music,
YouTube says
(Wired UK)
Where have all the
music pirates gone? -
music piracy decreasing
due to free streaming
services
(Ars Technica)
Business Matters: Why
2011 Is the Year Digital
Music Broke, by the
Numbers
(Billboard.biz)
THE FREEMIUM MODEL
Free Content - 95%
Free price,moderate servce,
can be advertising-funded
Paid Content - 5%
Premium price, premium
service
Potential Revenue Drivers
WHAT DO MUSIC CONSUMERS
ACTUALLY WANT?
listen to music
discover new (and old) music
easy access, anywhere, anytime
minimum or free cost
share songs
tie songs to identity (status update, badge, etc)
But do we really
know our
customers?
MAKING WAY FOR OHDIOO
KEY THOUGHTS
Enable comprehensive search
Simplify the experience
Recommend rather than curate
Enhance the larger ecosystem
Social sharing and listening
Create Brand + Music interaction
Appeal to
customer's
perceptions about
consuming music!
OBJECTIVES
become first point to find and listen to music
offer large library of music
enable a better music experience
music user analytics: listening habits, genres and songs
connection, purchase conversions to other sites
capture music lovers who do not ‘purchase’ music
CORE TARGET MARKETS
teenagers
office workers
SERVICE FEATURES
Music search
Listen to music via streaming, based on search results
Create and save playlists
Receive music recommendations
Share to social networks
Listen via web & mobile
Pay for premium service (streaming)
Connect with digital music download services (as 'buy'
links)
SERVICE ROLLOUT PHASES
Phase I | music search and custom playlists. Share results to
social networks. Sponsored playlists. Links to music download
services. Some mobile apps available.
Phase III | Import playlists from music programs (iTunes/WMP
etc) to keep playlists on the service (music locker). Partnerships
with 3rd
parties.
Phase II | premium membership for unlimited playlists. More
mobile apps available.
REVENUE STREAMS

Consumer side

Paid memberships

Premium memberships

Advertising side

Display ads

Text ads

Site sponsorship

Industry side

Music research & analytics

Music + demographics analytics

Marketing side

Music gimmicks & prizes

Access to music events & exclusives

Bands & Brands interactions
MUSIC LICENSING
The core service must emphasize on domestic repertoire to ensure
quick, mass adoption. Securing licensing deals should be a matter
of partnering with a suitable business model and revenue share.
Acquisition of international repertoire should follow, to make sure a
potential international rollout.
A key strategy is to have a dominant position on domestic
repertoire, and ensure a competitive advantage against potential
international competitors entering the market (i.e. Spotify).
MARKETING STRATEGIES
Digital PR campaign and social media features to enhance word-of-
mouth to early adopters
Introducing the service to key music industry figures and celebrities
Lock in artistes with loyal followings to try out the service with their
favorite artist's music
THE PROPOSAL
MUSIC LICENSING
Even though the service is free for the user, OhDioo will pay
standard fees per stream for all users using the service.
OhDioo will obtain revenues from a multitude of business models, but
the service will generally be free for the user.
MUSIC ANALYTICS
We collect user data that covers from age, location down to music
preferences – demographic identifiers crucial for planning marketing and
social media campaigns.
The larger the userbase, the more accurate and detailed the trends and
demographic data is, and the easier it is to construct campaigns
Our data can show more conclusively how to match “bands” to “brands”,
for creating a more mutually beneficial between the music label, the artist and
the brand holder.
With detailed demographics, it is easier to conduct D2C campaigns for a
focused potential audience and measure conversion and activation rates
through music listening and purchasing.
Questions?

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Ohdio Early Presentation Deck

  • 2. INTRODUCTION We want to think of a fresher way in approaching digital music – creating a valuable music experience for consumers.
  • 3. LOOKING AT MUSIC LISTENERS
  • 4. MUSIC CONSUMPTION: AN EVOLUTION Vinyl records Compact Disc iPod, for playing digital music files MC/Cassette ?? Purely digital music: MP3, RBT, ringtone, etc
  • 5. THE MUSIC CONSUMER ...THEN... Music Discovery | music listeners discovered music through centralized media outlets; radio, TV, and magazines.
  • 6. THE MUSIC CONSUMER ...THEN... Music Access | music listeners received their music though curated radio & TV programs, or had to buy the vinyl, cassette or CD.
  • 7. THE MUSIC CONSUMER ...NOW. Music Discovery | information channels are much more fragmented, bringing up the need of search engines and discovery optimization techniques to sort through all the information. Social networks also play a major role.
  • 8. THE MUSIC CONSUMER ...NOW. Music Access | access to music is not centralized to products like cassettes or CDs anymore; 1 music file can be spread around the world – free – with one click. Multiple music store options with multiple services and payment options compete for the music consumer's attention.
  • 9. THE MUSIC CONSUMER TOMORROW? Music's Future? | music locker services? Music bundled with other media and services? Hardware + media ecosystems? Purchase access to 360 music experiences? Time will tell.
  • 10. FORMING THE MUSIC SERVICE
  • 11. MARKET ISSUES Ownership Copy Control Multiple Music Services Digital Piracy Copyright Rental Access Control Market Fragmentation Content Sharing Ignorance Of Copyright VS
  • 12. EXISTING SERVICES Arena Musik Indosat Ringtones, RBT, wallpaper (Paid) Flexi Generation Music download (Paid)
  • 13. EXISTING SERVICES IM:port Music Store RBT, music download Kapanlagi Music Store Music download
  • 14. EXISTING SERVICES Langitmusik Telkomsel Music download (Paid) Melon Music streaming, music download (Paid)
  • 15. EXISTING SERVICES Arena Musik Indosat Flexi Generation Ovi Music Music download (Paid) Popmaya music download (Ad-funded)
  • 16. EXISTING SERVICES Smartmusik Music download (paid) Souniq Music Music streaming (free)
  • 17. EXISTING SERVICES Streamsation Music streaming (paid) Kongkoow Music download (paid)
  • 18. Question: how much revenue or value have these services brought to the market?
  • 19. iTunes INTERNATIONAL MARKETS Success Stories Industry Quotes Pandora Spotify Amazon Universal Music boss: 'Streaming is the future' (Wired UK) Free music can pay as well as paid music, YouTube says (Wired UK) Where have all the music pirates gone? - music piracy decreasing due to free streaming services (Ars Technica) Business Matters: Why 2011 Is the Year Digital Music Broke, by the Numbers (Billboard.biz)
  • 20. THE FREEMIUM MODEL Free Content - 95% Free price,moderate servce, can be advertising-funded Paid Content - 5% Premium price, premium service Potential Revenue Drivers
  • 21. WHAT DO MUSIC CONSUMERS ACTUALLY WANT? listen to music discover new (and old) music easy access, anywhere, anytime minimum or free cost share songs tie songs to identity (status update, badge, etc) But do we really know our customers?
  • 22. MAKING WAY FOR OHDIOO
  • 23. KEY THOUGHTS Enable comprehensive search Simplify the experience Recommend rather than curate Enhance the larger ecosystem Social sharing and listening Create Brand + Music interaction Appeal to customer's perceptions about consuming music!
  • 24. OBJECTIVES become first point to find and listen to music offer large library of music enable a better music experience music user analytics: listening habits, genres and songs connection, purchase conversions to other sites capture music lovers who do not ‘purchase’ music
  • 26. SERVICE FEATURES Music search Listen to music via streaming, based on search results Create and save playlists Receive music recommendations Share to social networks Listen via web & mobile Pay for premium service (streaming) Connect with digital music download services (as 'buy' links)
  • 27. SERVICE ROLLOUT PHASES Phase I | music search and custom playlists. Share results to social networks. Sponsored playlists. Links to music download services. Some mobile apps available. Phase III | Import playlists from music programs (iTunes/WMP etc) to keep playlists on the service (music locker). Partnerships with 3rd parties. Phase II | premium membership for unlimited playlists. More mobile apps available.
  • 28. REVENUE STREAMS  Consumer side  Paid memberships  Premium memberships  Advertising side  Display ads  Text ads  Site sponsorship  Industry side  Music research & analytics  Music + demographics analytics  Marketing side  Music gimmicks & prizes  Access to music events & exclusives  Bands & Brands interactions
  • 29. MUSIC LICENSING The core service must emphasize on domestic repertoire to ensure quick, mass adoption. Securing licensing deals should be a matter of partnering with a suitable business model and revenue share. Acquisition of international repertoire should follow, to make sure a potential international rollout. A key strategy is to have a dominant position on domestic repertoire, and ensure a competitive advantage against potential international competitors entering the market (i.e. Spotify).
  • 30. MARKETING STRATEGIES Digital PR campaign and social media features to enhance word-of- mouth to early adopters Introducing the service to key music industry figures and celebrities Lock in artistes with loyal followings to try out the service with their favorite artist's music
  • 32. MUSIC LICENSING Even though the service is free for the user, OhDioo will pay standard fees per stream for all users using the service. OhDioo will obtain revenues from a multitude of business models, but the service will generally be free for the user.
  • 33. MUSIC ANALYTICS We collect user data that covers from age, location down to music preferences – demographic identifiers crucial for planning marketing and social media campaigns. The larger the userbase, the more accurate and detailed the trends and demographic data is, and the easier it is to construct campaigns Our data can show more conclusively how to match “bands” to “brands”, for creating a more mutually beneficial between the music label, the artist and the brand holder. With detailed demographics, it is easier to conduct D2C campaigns for a focused potential audience and measure conversion and activation rates through music listening and purchasing.