The Entertainment Ecosystem Lecture Notes

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The Entertainment Ecosystem Lecture Notes John Pisciotta Survey of Music Business MBU 1110.18 MIKE CURB COLLEGE OF ENTERTAINMENT AND MUSIC BUSINESS

Small Business & Entrepreneurship

Survey of Music Business
!
!
!
John Pisciotta Survey of Music Business MBU 1110.18
!
MIKE CURB COLLEGE OF ENTERTAINMENT AND MUSIC BUSINESS
!

Myth # 1:
!
“You are on either the “music side”
or, on the “business side”
!

!
The truth is:
as a professional, you are in “the music business”
!
There is no “music only” side of the business.
You might be more musical than somebody else,
but you are in the music business.

Entertainment Ecosystem
Technicians
!
Scaleable
Innovations
Enthusiasts
!
Asset Collectors

Enthusiasts
• Fan Boys or Hobbyists
• Bleeding Edge Gadgets
• Rarely Build Value
• Rarely Execute

Technicians
!
!
!
Enthusiasts
Asset
Collectors

Technicians
• Focused Knowledge Workers
• Producers, Publicists, Writers, Technologists,
Lawyers
• Hired Guns-Work For Hire
• Often lead a service based business
• Low Risk-Many Competitors
• Usually Create/Don't Own
• Often own a “job” paid per hour/project

Asset Collectors
• Labels, Publishers
• Hit Driven Model
• Monetizes by building a critical mass
•Own or Aggregate/Usually Don't Create
• Lead the previous Era

Technicians
!
Scaleable
Innovations
!
!
!
Enthusiasts
!
!
Asset
Collectors

Scalable Innovations
! • Global Reach
• Team>Talent
• Team Small-User Base Huge
• Focused on a big problem/disruption/innovation
• Build Accretive Value
• Potential Liquidity Event

Enthusiasts Technicians
Asset
Collectors!
Scaleable!
Innovations!
Tell Fanboy
-you get paid
by the project
!
-you can't stop
working, you
only get paid
when you work
you're
collecting a
critical mass of
content that
grows more
valuable
overtime
scalable
company is one
that hundreds
and thousands
of people can
use it at the
same time

Enthusiasts Technicians Asset
Collectors!
Scaleable!
Innovations!
Competition Many Many Few Few
Vision None Little Important Very Important
Startup cost None Very Little Substantial Substantial
Barrier to entry ! None None Low Low/Considerable
Time to market Quick Quick Slow Quick/Slow
Value Low Low significant significant
Risk / Reward Low/Low Low/Med Med/High High/High
Team None Not important important super important
Liquidity event NA NA Potential Potential
Complexity Not Complex Not Complex Somewhat Complex Complex
Innovation Not Needed Helpful Helpful Vital

!
Survey of Music Business
!
!
John Pisciotta Survey of Music Business MBU 1110.18
!
!
MIKE CURB COLLEGE OF ENTERTAINMENT AND MUSIC BUSINESS
!
@johnpisciotta http://www.loud-lab.com http://musicsynk.com

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