Music needed a new model.

We built it.

Music needed a new model.

We built it.

CULTURE’S PLAYGROUND

A Z U M I

Max Lawrence max@azumi. io

THE MUSIC INDUSTRY 2.0

THE DIGITAL MUSIC INDUSTRY

Physical Sales Decreasing2001-20011: US Records sales plummet from $14.6 Billion to $6.3 Billion

2015: Digital Music rose 6.9% to $6.9 billion, representing 46% World Market Sales

Streaming GrowingStreaming Growth: Revenues increased by 39% to $1.57 billion

Spotify: $.005 / stream

Consumer Priorities ShiftingFans value online interactions, personalized content, and being in the loop.

Macro trend towards decentralization and independence in entertainment sector.

RISE OF THE INDEPENDENT ARTIST

Direct-to-FanA business model used by independent musicians, independent music labels, comedians,

and many others in the entertainment industry that bypasses the major record label model.

- Release music online and grow Fanbase. - Engage them via social media.

- Monetize relationship.

Selling Experiences Pioneered by the platform Bandpage: “It’s no longer just about selling t-shirts and tote

bags, it’s about selling experiences fans crave”.

Music needed a new model.

We built it.

DIRECT-TO-FAN

SUBSCRIPTIONS GROWING

Music needed a new model.

We built it.

Artists

Unable to monetize the content they publish on social media.

Fans

Crave exclusive and in depth access to their favorite Artists and Icons.

PAIN POINTS: MONETIZATION & EXCLUSIVITY

Music needed a new model.

We built it.

Music Fans could spend up to $2.6 billion annually for behind-the-scenes access to artists and exclusive content.

Nielsen SXSW ReportBuyers and the Beats

2014

UNTAPPED OPPORTUNITY

THE AZUMI SOLUTION

Privatizing Social Media

On Azumi anyone with a following can provide core fans exclusive content and interaction for a subscription fee.

THE AZUMI SOLUTION

Social Network of Exclusive ContentMembers subscribe to their favorite Artists’ “Tribes” receiving early access to

music, exclusive interactions and perks.

Flexible Commerce ModelTribes are naturally free to join. Artists are in complete control of price, perks, and

brand sponsorships.

Connecting Culture Azumi is a full scale social network for music and culture. Members’

contributions are rewarded with subscriptions, merchandise, and concert tickets. Fans are able to follow Artist’s feeds for free and consume the same content and

music as their favorite Artists.

ELECTRONIC SECTOR

REASONS TO JOIN AZUMI (Art ists)

Sophisticated WebAppGreat design. Great execution. All in one place.

Fans like having hubs to access content. Azumi helps you control and monetize yours through a secure stream.

IndependenceTribes are naturally free to join. Artists are in complete control of price, perks, and

brand sponsorships.

REASONS TO JOIN AZUMI (Fans)

Exclusive Content

Access: Exclusive access to music, concert presales, behind the scenes videos, and more.

Convenience: Access to musicians all in one platform.

REVENE MODELMicro Subscriptions [One Artist or Label]

Suggested Price: $10-$60/year. Azumi cut: 3%-10%

Azumi Subscription [All Participating Artists]

$100/year

Revenue Projections:

Bassnectar: 6,006 subscribers: $120,120/year. Azumi cut of $15,015.00

Skrillex: 56,814 subscribers: $1,138197/year. Azumi cut of $142,274.63

Rihanna: 405,000 subscribers: $8,100,000/year. Azumi cut of $648,000.00

.05% adoption rate from Facebook followers at a rate price of $20/year.

TEAM Martin Hsieh – Design / Web Dev.

Parson New School of Designmartin@azumi.io

Max Lawrence – Co-Founder: Web Design / Dev.Music Entrepreneurship – New York University. Cantora Labsmax@azumi.io

Leonard Truong – Co-Founder: Head EngineerComputer Science – UC Berkeley. Tesla Motors. leonard@azumi.io

Nick Panama – Advisor Co-Founder of Cantora Labsnick@cantora.com

Greg Tokomizo & Forrest Durell – A&R

Music Business – New York University The Confluence & Columbia Records

Johnny Shankman – Engineer Music Technology – New York University. Refinery 29

Arpan Somani - Business Dev. Music Business – New York UniversityThe Fader

Marcie Allen – Advisor CEO of MAC Presents marcie@macpresents.com

COMPETITION

DRIP.FM

Similar subscription model Focused on Labels instead of Artists

Heavily reliant on EmailHigh Price Points

BANDPAGE Widget based Music Profiles

Marketplace for “Experiences” – e.g. selling a livestream concert

PATREON

Patreon enables fans to give ongoingsupport to their favorite creators.

Crowdfunding model where fans pledge a $ amount per creative update.

FAN CLUBS

Dave Matthews Band’s Fan Club amassed $2.8M in revenue in one year.

CUSTOMER ACQUISITION

Artists Partnerships:

– Private Alpha Launch with 10 Artists

500 Test Users selected via Facebook & Twitter for discounted trial.

Arranged releases of music, promoted through artist’s social media channels.

Festival Partnerships:

- Sponsor a Festival Ticket Giveaway

Organize Festival Ticket giveaway to Outsidelands, Snowglobe, and Lightning in a Bottle. Azumi sign up required to be eligible.

Leverage Music Industry 2.0 Platforms:

- ProductHunt, Reddit, and music blogs

Matrix

Projections

STATUS & GOALS

Alpha Prototype of Site Completewww.azumi.io

Revise Summer, 2015 Trim fat and improve UX

Approach previously contacted artistsConfirm launch partners Launch Winter, 2016

Hit Critical Mass, Raise Seed, Earn Revenue Expand to comedians, athletes,

and youtube stars 2016 - 2021

Risks & Considerations

Will fans pay for this? Research says yes

When to go to market? Bandcamp’s entry concerning

Entrepreneurship vs Employment Shorts vs. Long Term Gain

TIMELINE

Alpha LaunchWinter, 2016

MVP Summer, 2015

Launch PublicSummer, 2016

CONTACT US FOR

Artist Inquiries

Mentorship/Investment

Employment Opportunities

To Say Hello!

SOURCES

Nielsen/SXSW: The Buyer and the Beats

Money.CNN: Music’s Lost Decade

New York Times: Downloads in Decline

TechDirt:

The Future of Music Business Models Dave Matthews Band: a Case Study of Fan Clubs

Music needed a new model.

We built it.

Music needed a new model.

We built it.

CULTURE’S PLAYGROUND

A Z U M I

Max Lawrence max@azumi. io