Class project for MVMC 2013 Masters

1. WorkGroup A.2

2. Overview

3. Challenges
Long tail
sharing, niche
FREE
Access
wifi, data, satellite
Devices
desktop, mobile, auto
Ad servers
Identity
community, brand
Royalties
Legislation
Disruptive technology

4. Customers

5. Customers

6. Customers
If you’re a music fan and listen to Spotify two hours each day:
• Each day you listen to about 30 songs
• Each day you distribute over $0.13 to artists
• Each year you listen to about 10,950 songs
• Each year you distribute over $49 to artists
If you played music on Spotify 24/7 for the whole year, you’d play about 131,400 songs

7. New Players
More futures than spotify such as play history, top chart, recommended
music, easy to sync music into the playlist to the apps, comprehensive
website.
Good queue management, easy to add songs into the playing queue,
as well recording, good music library similar to Spotify, easy future
when you want to listen to a specific kind of music. Rhapsody helps
in deciding what song you want to listen to.
Create an account and listen to the music of your choice, paid
account option, good track of the songs, read lyrics, track
activities, sharing on Twitter and Facebook, make friends, good
song recommendation, attractive, & mobile apps.
Social Networking, favorite songs, integrated flash player, free online
internet radio, makes recommendations, easy interface, the songs, albums,
popular list.

8. The Breakdown
Spotify Rdio Rhapsody Pandora GrooveShark
Users Over 20 million active users Not Published Not Published 54.9 million users 35 million users
5 million active subscribers
paying each month
Price Free (ad supported unlimited) Free (no ads), web ($4.99/month) Premier No ads Subscribers 3$/month
($4.99/month) To unlimited (9.99/month) $3.99/month
Premium ($9.99/month) Premier plus
($9.99/month) ($14.99/month)
Free limit 10 hours/month Limited per month 15-30 days free trail None
(version) unlimited up to 6 months
Available in countries 17 countries 17 countries USA USA, New Zealand, Australia
(Australia, Austria, Belgium, (Australia, Belgium, Brazil, Canada,
Denmark, Finland, France, Denmark, Estonia, Finland, France,
Germany, Ireland, Luxembourg, Germany, Netherlands, New
New Zealand, Norway, Spain, Zealand, Norway, Portugal, Spain,
Sweden, Switzerland, The Sweden, UK, USA)
Netherlands, UK, USA)
Custom Playlist YES YES YES YES YES
Future syncing with mobile devices, history, top chart, recommended good queue management, easy to Facebook Applications, Songs, Albums, facebook,
Catalog, playlist, last.fm music, easy to sync music into the add songs into the playing queue, Windows Vista, Playing in Twitter, google
integration, radio, Social media playlist to the apps, comprehensive recording, good music library vechicles
integration: Facebook, twitter, website, Music discovery similar to Spotify, easy future
Applications, Spotify uses this when you want to listen to a
integration to learn which songs specific kind of music Rhapsody
you like best helps in deciding what song you
Sound quality want to listen to.
Languages Over 50 languages English Over 30 Languages
Tracks 20 millions tracks 18 million tracks 16 million tracks 800,000 tracks from 80,000 15 million songs
artist
Listen offline With premium subscription Unlimited subscription With premium subscription No No
Smart phone Blackberry devices Iphone/Ipod Iphone/Ipod Blackberry Blackberry
Iphone/Ipad Android phones Android phones Android Iphone
Android phones Blackberry Blackberry devices Windows mobile Android
Windows Mobile 6x Windows 7 Iphone Palm
Nokia
Revenue $240,000,000

9. The Future is . . . e x p a n d i n g!
World&wide&Music&Industry&Revenue&
80$ 36.5$
70$
36$
60$
35.5$
50$
40$ 35$
30$
34.5$
20$
34$
10$
0$ 33.5$
2006$ 2007$ 2008$ 2009$ 2010$ 2011$
$Concert$Revenue$ Music$Industry$Revenues$ Recorded$Music$Revenues$

10. . . . and restructuring!
Artists
The old way . . . $
Label
$
$
Promotion Platform
$
Listener

11. Label
$
$
$
$
Listener Artists

12. Future
Increase of ...
Consumption of
Live & HQP
Creative Freedom
Social × Sharing

13. Increase of music consumption!
January 28 12:00(CET) January 28 12:00(CET)
January 28 12:00(CET) January 28 12:00(CET)
January 28 12:00(CET) January 28 12:00(CET)

14. EXP × HQP

15. Label
Media Concerts &
High Quality Products...
Listener

16. Creative Freedom!

17. Future
Social × Sharing
×Marketing
○Good Music
Creation Free

18. Beyond...

19. Revolution
of the
Music Industry

20. X