The live online music streaming service and go-to site for anyone attending music events. Fandom by Team Marconi for Google Squared.

1. Live Concert Streaming
Fan-to-fan services for those attending gigs
Fully interactive with up to date info from your
favourite artists, fan forums and exclusive extras
– MARCONI TEAM –
SHAHZAD AKHTAR / MARTIN COOK / ELENA D‘AMECOURT / SUSANNAH HOWARD
BEN NEWTON / CHARLIE SIVELL / ANDREW STRANGE / VIJAY TENNETI
WE ARE SQUARED – MODULE 2 ASSIGNMENT – OCT 25, 2013

2. TEAM MARCONI
Broad range of digital marketing, planning, financial and general business acumen. This
experience, together with such diverse backgrounds and international expertise, makes Team
Marconi an exciting and innovative group to do business with.
With shared passions for music, tourism, consumerism and digital progress, we believe that Fandom
answers the need of the consumer whilst allowing artists, producers and venues to increase
revenue from the limited audience of a live show.
Charlie Sivell
Ben Newton
CEO
Communications Manager
Shahzad Akhtar
Susannah Howard
Brand Manager
Senior Business Analyst
Martin Cook
Elena D’Amecourt
Chief Web Designer
Management Controller
Andrew Strange
Vijay Tenneti
Digital Marketing Manager
Corporate Strategy / Risk Management Leader

3. FANDOM – A BREAKDOWN
•
Fandom allows fans that can’t attend their favourite artist‘s
concerts, because of geographical or economical reasons or limited ticket
availability, the chance to watch live high quality streaming of the
gigs, interact with artists and fellow fans and purchase official merchandise or
music instantly
•
For fans that are lucky enough to be attending the events, the ‗Are You
Going?‘ section offers specially targeted information, services and
offers, some of which are offered by fellow fans in the area, such as
accommodation and car sharing
•
The European market lacks a reliable, interactive, high quality streaming
service and general ‗one stop shop‘ for fans of all genres of music
•
For artists, Fandom is an opportunity to open up sold out or in demand
concerts to the masses, creating increased exposure, interest and additional
revenue through merchandise and downloads
•
For advertisers, the ability to know their audience and target accordingly
(through the membership profile questionnaire) and an un-rivalled
knowledge that the audience being served ads on certain sections of the
sight will be in a particular location on set dates, requiring certain products
and in a spending mind-set as they travel and attend the events
•
This opens the site up to international, national and local companies

4. HUGE DEMAND FOR LIVE MUSIC
7.7 million
Visits to major music concerts & festivals in the UK each year
(1)
£1.4 billion
Spent at these events (1)
UK Music
Attendances
International audiences means global demand
(1)
$27 billion
The global live music industry worth in 2013, according to
PwC
$30.9 billion
Tickets and sponsorship of live events will generate in 2017
Secondary economic
effects of music events
On related services (tourism, restaurants, transports).
Ancillary items is a source of additional revenue: +12,6% to
tickets price (2)
(1)
(2)
ukmusic.org
livemusicexchange.org (data for Germany

5. MUSIC IS AN INCREASINGLY ONLINE BUSINESS
189,000,000
Sales of singles in 2012, 99.6% of which were digital (1)
938,000,000 +
Digital tracks sold in UK in 2012 (1)
3,700,000,000
Audio streams in UK in 2012 (1)
£49,000,000
Value of streaming to British record labels (2)
80%
Proportion of people who are aware of streaming services (3)
1 million
Number of people that watched the live streaming of
California‘s Coachella festival.
7 Of Top 10
Most followed people on Twitter are pop stars
(1) Official Charts Company
(2) BPI
(3) Kantar
twittercounter.com

6. STREAMING BUSINESS MODELS ARE NOT YET
ESTABLISHED
Streaming music revenues up
40% globally in 2012
70%
of paid
streaming
revenue
Streaming is thus the fastest growing sector in music industry
(1)
20 million (+44%) paying
streaming subscribers in 2012
globally
is spent by Spotify for content acquisition alone
Streaming platforms must create
added value for their paid
offerings
> Subscription rates to digital music streaming services were
initially slow to take off.
> 20% of Spotify users are converted to paid users.
In France 25% of streaming users
already used paid streaming
> France is a second European market for streaming after Sweden
> 100 000 are Spotify subscribers
> 300 000 are Deezer subscribers
Otherwise the subscription rates are low
Spotify spends 70% for content acquisition alone and experienced
net losses due to these costly operating expenses
“Oligopoly” Majors Vs
Independents
90% of the market is controlled by Universal, Sony and
Warner but the new digital business models challenge them
(1)
(2)
(3)
(4)
(5)
http://www.bbc.co.uk/news/entertainment-arts-19270362 (3 March 2013)
International Federation of Phonograph Industry, Digital Music Report 2013
Houghton, Bruce. ―Spotify Asks Labels To Pay Less, Expand Free Mobile,‖
hypebot, 2013, http://www.hypebot.com/hypebot/2013/02/spotify-asks-labels-to-pay-less-expand-freemobile-report- .html (12 March 2013).
Nielsen, 2012, http://www.nielsen.com/us/en/press-room/2012/music-discovery-still-dominated-by-radio-says-nielsen- music-360.html (12 February 2013)
presse-citron.net

7. GRASPING OPPORTUNITY
Rise in popularity and
globalisation of music
festivals
Forbes: Global
increase in live
music streaming
US festival Coachella added a second weekend to its
lineup, pulling in a record breaking $47 million gross
Need to be step ahead and offer original content
Many festivals have expanded outside of their home
region, such as Lollapalooza and nar (Spain)
In UK a demand of new festival experience as there is market
oversaturation and many festivals closed lately (1)
(1) New business models in the music industry
http://blog.midem.com/2013/06/new-business-models-inthe-music-industry-rethink-music-white-paper/
www.forbes.com/sites/ericaswallow/2013/07/21/livestream-concerts/
‗Producers quickly adopting… in effort to increase social
media engagement, attract advertisers, strengthen brands
and ultimately grow revenue‘

13. BUSINESS MODEL
Key
activities
Revenue
streams
Platform development and
maintenance
Live events streaming
Community management
E-commerce
Partnerships/negotiations with local
trades
(restaurants, accommodation, transp
ort) and gigs promoters
Value
proposition
Opportunity to watch the events
one can‘t attend with flexible
streaming options
Tips and discounts allowing the
best gigs experience for low prices
Customer
segments
Paid option for Premium streaming
Commission from local trades
(average of 5% on performance
basis for successful bookings)
Non excusive gigs tickets and
ancillary items sales
People who can‘t attend the live
event but want to watch it
Local trades looking for customers
Advertisers
Advertising on the platform
Customer
relationships
Cost
structure
Content buying, providers payment
for streaming
Self service on site with the
possibility to contact the customer
service
Human Resources and other
operational costs
Newsletters
Platform maintenance, IT
Marketing
Access to a community sharing the
same interest
People attending gigs
(4 core target groups) and looking
for the best prices to organize their
trip
International payment solutions
Channels
Online - Site, Mobile, Blog, partners
websites
Offline - gigs and local trades
physical sites
Growth drivers: user acquisition, existing users average basket increase, international development

14. COMPETITOR LANDSCAPE
irocke.com
Venue-specific sites
Apple iTunes festival
streaming original content e.g. BlueFrog
Player (India), Moshcan (Australia),
Gigviz (Utah)
(Spotify have similar festival)
Overview:
Broker site & database of live internet
concerts
Aggregates live music streams & lets
consumers subscribe / be notified when
favourite artists are streaming.
Focused on events in the U.S.
Advertising on site
Original content from specific venues
Generally professionally-filmed, free to
users
Revenue from venue (e.g. Gigviz offers
additional revenue stream) and/or targeted
advertising
Annual music festival at Roundhouse
venue in London, sponsored by Apple
to support brand
Free tickets via lottery for iTunes
customers, & performances streamed
live for free on iTunes, App & Apple
TV
USP:
Single site for most streamed music
events (US)
Fully integrated – own events, content,
venue, distribution. Exclusive to them.
Own events / content, and major
bands. Exclusive to them
Offer free gig tickets by lottery
TV stations
Concerttv
Vevo
Air BnB
Overview:
Promoters sell rights to
concert footage to TV
companies
•Broadcasts recordings of live & ondemand gigs
Distribution contracts with major
cable, satellite & IP TV operators
(‗close to 30m American households‘);
partnerships with MTV & BBC.
―The definitive concert destination on
TV!‖;
High quality streaming
service & database of ondemand music videos
No original content;
partners with contentcreators & sponsors Part-owned by Sony
Music & Universal
marketplace for people to list, &
book accommodation directly with
each other — online & mobile
USP:
Upfront revenue stream
for artists / promoters
Contracts in place with major TV
channels (incl internet TV)
Relationship with labels
Database of reviews & trusted
safeguards – hosts & guests

15. TARGET AUDIENCE
FUN LOVERS
Aged 16-35.
Consumed by music.
Digitally savvy.
Disposable income
Pop and rock fans
Regularly attend gigs.
May want budget
accommodation.
GUITAR HEROES
Aged 35+.
Prefer older bands.
Less digitally savvy.
Attend gigs less
frequently.
Limited finances. Want
cheaper
accommodation.
SOPHISTICATES
Aged 25-40.
Affluent.
Attend rock and pop
gigs but may also
enjoy jazz and opera.
Like good food and
nice hotels.
OLD TIMERS
Aged 40+.
Financially well off.
Not digitally savvy.
May go to the biggest
concerts by older rock
and pop bands.
Infrequent attenders at
gigs.

16. USER ACQUISITION STRATEGY
YEAR 2 vs YEAR 1
+14 039 users
>>11 801 USERS = MAINLY ONLINE ACQUISITION
>>2 238 = MAINLY OFFLINE ACQUISITION
YEAR 3 vs YEAR 2
+17 443 users
SEO
>>15 728 USERS = MAINLY ONLINE ACQUISITION
>>1 716 = MAINLY OFFLINE ACQUISITION
Promotion via local trade
partners
Emailing to existing users: invite a friend
and get a Premium streaming test for free
fandom
Traffic acquisition and lead
generation online games
Banner ads on gigs tickets distributors
websites
Promotional actions in the gigs area
(demo and data collecting on the
iPads)

17. REVENUE & EXPENSES, £

18. EXIT STRATEGY – POTENTIAL BUYERS
Big (Universal, Sony, Warner)
•
Live streaming distribution integration
•
European streaming market development
•
Diversification, competitive advantage vs
other majors
•
Spotify
Potential platform for live gigs ticket sales
•
Is planning to extend its presence
in Europe
•
Is planning to enter the European
live streaming market (e.g festival
streaming in France)
MTV
•
•
•
•
Looking for the new opportunities in
order to adapt itself to the
development of the digital in the
music industry
Is trying to position itself on the
digital content creation
The streaming of live events is a
logical compliment to recorded
music broadcasting
Community/new users
acquisition

19. IN CONCLUSION
STRENGTHS (internal to Fandom)
• Experienced founding team:
-Led several businesses and projects to profitability
-Proven technical, marketing, sales & financial
management skills
WEAKNESSES (internal to Fandom)
• Gaps in teams experience to be filled by Advisory Board:
- Direct industry experience (e.g. Nick Watt / Spotify
experience)
-Legal
-High quality streaming infrastructure
• Community needs critical mass – need fast growth, to
generate press interest with initial gigs
• No existing database of reviews (host / guest) on Fan
BnB site – need safeguarding measures to generate trust
quickly
OPPORTUNITIES (external e.g. customer, market)
• No existing company profitable from streaming alone
• Artists / promoters need new ways to monetise music (as
recording sales decline)
• Artists who want to be innovative (e.g. Radiohead / Prince
free download or donation for new album, creates
exposure)
• Music fans looking for convenient & interactive experience
e.g. exclusive video content, select views, merchandise
purchase
• Music fans used to online communities; familiar with
concept of peer accommodation matching
• Local businesses not maximising value of sold-out gigs;
music fans looking for local deals when travelling to a gig
THREATS (external e.g. customer, market)
• Low barriers to entry
• Competitors already in space could replicate USP (fan
community / local business promotion)
• Artists may prefer guaranteed upfront revenue (selling
rights to TV) vs. variable revenue from streaming at low
cost to potentially massive online & mobile audience –
focus initially on innovative artists seeking press attention
• Sony / Universal control % of industry & have stake in
competitor Vevo

20. – MARCONI TEAM –
SHAHZAD AKHTAR / MARTIN COOK / ELENA D‘AMECOURT / SUSANNAH HOWARD
BEN NEWTON / CHARLIE SIVELL / ANDREW STRANGE / VIJAY TENNETI
WE ARE SQUARED – MODULE 2 ASSIGNMENT – OCT 25, 2013