Magnatune presentation for traditional business people (bankers, industry executives, marketing folks) in traditional positioning and market segment terms.
8. Leveraging consumer anger at the Music Industry
Limited musical diversity,
poor quality
CD prices too high
Ripped-off musicians speaking out
DRM
Symptom: using P2P is acting
as a just-cause revolutionary
9. How music demand is typically created
Traditional command-
and-control marketing
Grass-roots uprising
quot;Customers also boughtquot;
Try-before-you-buy
(Magnatune’s focus)
11. Try-before-you-buy: many new ways
30-second snippets (iTunes/Amazon)
quot;Conceptquot; compilations (quot;Buddha Barquot;)
Recommendation web sites
P2P used for previewing
Mix CDs from friends
Social MP3 sharing
DJ culture & raves
Internet radio
12. Music Biz isn't just CDs
Most music heard is not at home, but in
a business/commercial setting
Consumer shopping experience is
increasingly staged, with music
in a key role
Music is branding
TV commercials make hits
Tie-ins are increasing
Music biz becoming
like book publishing