Jonathan Shakhovskoy, the co-founder of the Script, a music and content agency, share their learnings from being one of the first projects funded through the Digital R&D Fund. This presentation was delivered at the Digital R&D in the Arts Annual Forum at Vinopolis on 3 July 2014. For more information, visit: http://www.nesta.org.uk/event/digital-rd-arts-annual-forum

1. The
Album-App
Project

2. Project Overview
Key Question:
Are mobile apps a viable
format for music distribution?
Key areas of investigation:
1. Consumer desire
2. Cost of production
3. Royalty models
4. Chart eligibility
5. Distribution issues
6. Creative opportunities

3. Why This Project?
Addressing falling revenues is a major music industry challenge
Multiple stakeholders and multiple obstacles
It’s a Commercial and a Creative question
Business models, consumer desire, artistic fit, break even point
Royalty Agreements and Distribution Are Factors
Royalty models and points of sale are cited as a major obstacles
Music Artist - App Developer collaboration is newStreamline
development processes and explore creative opportunities
Implications for wider arts sector
Reducing cost of production could open this format to the wider arts sector

4. Why Hasn’t This Been Done Before?
1. Music format innovation was Apple’s job
2. Music industry the first to be hit by digital piracy problems so are risk
averse
3. Multiple stakeholders often at odds with each other
Artists
Music Publishers
Record Labels
Digital Music Distributors Royalty Collection
Societies
It’s complicated, and without a guaranteed positive outcome
Stakeholders

5. Wider Arts Sector Benefit
1. A rich and compelling experience for many art forms, but
are expensive to build with quality.
2. A reduction in production costs could pave the way for
use by musicians, fine artists, photographers etc
3. Less prone to piracy than mobile websites so could offer
a more “privileged” digital experience of an artist’s work.
4. The format could provide a unique consumer experience
driving higher revenues and disrupting existing business
models.

6. Key Challenges
1. Stakeholders with no commercial imperative to innovate
2. Music rights holders beholden to digital distributors for
format innovation
3. Significant amount of music law knowledge required
4. Difference of opinion amongst stakeholders on
interpretation of some points of royalty agreements
5. Music artists generally know nothing about app
development

7. Learnings To Date
1. Consumers desire is definitely there.
2. Music publishers are making full adoption difficult.
3. A music artist with two apps on his phone can produce some
brilliant app concepts.
4. We made the world’s first chart eligible album-app, so chart
eligibility is possible.
5. Cost of production can be reduced, though cross-platform costs
remain a stumbling block.
6. Full adoption will require a concerted effort especially from
technology stakeholders.

8. Please discover
Francois & The Atlas
Mountains
“Piano Ombre”
LP / CD / MP3
&
innovative Album-app for iOS
Available on the Apple App-Store