The document discusses various business models in the music industry. It begins by defining a business model and outlining the key components of the business model canvas. It then summarizes several business models including record companies, piracy, iTunes, Spotify, and independent artists. Record companies focus on marketing and promoting artists to mass markets through retail and digital channels. Piracy relies on uploading and downloading music for free through peer-to-peer networks. iTunes revolutionized the industry with its seamless digital music experience on iPods and in the iTunes store. Spotify aggregates music from rightsholders and distributes it for free with ads or through subscriptions on mobile and online. Independent artists are increasingly turning to crowd-funding to finance their
29. A
dynamic
market
a
global
industry
characterized
by
many
players
and
fierce
competition
30. A
product
or
service
with
a
mass-‐market
potential
31. The
role
of
music
in
peoples’
lives
“Music is something most people love,
that no one dislikes and that touches
everyone throughout their lives”
BrandAmp
study,
Millward
Brown,
2007
59. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
Marke:ng
&
promo:on
Distribu:on
channels
Detec:ng
&
Mass
market
building
talent
Hits
and
wannabee
hits
KEY DISTRIBUTION
RESOURCES CHANNELS
Manufacturers
Por@olio
of
star
TV
Retailers
ar:sts
Copyrighted
Radio
Digital
content
COST STRUCTURE REVENUE STREAMS
Marke:ng
&
Royalty
Tours
and
Merchandising
promo:on
Subsidizing
payments
concerts
Huge
sales
unsuccessful
from
a
few
ar:sts
ar:sts’
albums
70. PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
Upload
Peer-‐to-‐peer
Developers
of
illegal
Download
All
the
worlds
applica:ons
and
soGware
music
Mass
market
KEY DISTRIBUTION
RESOURCES CHANNELS
A
network
of
commiLed
users
User
skills,
interest
and
Digital
commitment
COST STRUCTURE REVENUE STREAMS
84. “We
are
going
to
provide
music
to
everyone
(any
time,
any
place)
for
free
in
a
legal
way”
85.
86. “Our
dream
is
to
collect
all
the
world’s
music
and
make
it
accessible
to
everyone.”
87. Spotify
aggregates
content
from
right
holders,
distributes
it
to
consumers
through
the
technical
platform
and
monetizes
both
through
a
free,
ad
funded
service,
and
a
subscription
service.
89. The
Business
Model
of
Spotify
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS
Pla@orm
Automated
development
online
and
rela:onship
Adver:sing
Adver:sers
maintenance
Rightholders
3rd
party
APIs
Communi:es
(labels
and
publishers)
KEY Access
to
DISTRIBUTION
RESOURCES music
via
CHANNELS
streaming
and
Global
music
Licensing
download
Internet
+
fans
agreements
services
PC
SoGware
and
Internet
+
Pla@orm
and
network
mobile
brand
engineers
COST STRUCTURE REVENUE STREAMS
Subscrip:on
Royal:es
to
Bandwith
costs
Ad
fees
fees
PC
+
rightholders
Subscrip:on
mobile
Salaries
fees
PC