How Sony Music Hardwired Fans & Followers Into Its Businessad:tech / September 2012

Mill

ion

““We only We only realised we realised we had an had an audience audience when they when they started started stealing stealing from us”from us”

““First we First we open a open a

bottle of bottle of tequila tequila

then we then we light a light a

doobie”doobie”

The digital revolution has turned our business

model upside-down…

…and forced us to think about our audience

Hardwiring Fans & Followers | slide 6

The first step was creating a segmentation

Hardwiring Fans & Followers | slide 7

The Sony Music Segmentation

But the audience still didn’t feel alive in the organisation

……so we created so we created Sony Music Sony Music BackstageBackstage

Hardwiring Fans & Followers | slide 10

Sony Music Backstage supports 3 business objectives

Better products & services

More effective marketing

More audience focussed culture

Hardwiring Fans & Followers | slide 11

How we have created better products and services

Project Phoenix: how do we sell more back catalogue digitally?

Hardwiring Fans & Followers | slide 12

How we have created better products and services

Project Phoenix: Music that takes you to a better place

Catalogue purchases are triggered by fond memories

There are no online discounts to speak

of

Once you buy one track, you’re very

likely to buy a second

INSIGHT 1 INSIGHT 2 INSIGHT 3

Hardwiring Fans & Followers | slide 13

How we have created better products and services

Project Phoenix: Music that takes you to a better place

Hardwiring Fans & Followers | slide 14

How we have created better products and services

Project Phoenix: Music that takes you to a better place

Hardwiring Fans & Followers | slide 15

How we have created better products and services

Other evidence of strategic impact…

Established new creative

guidelines for music

videos

Developed a new D2C strategy (selling directly through

artist websites)

Created a new 3 tier

pre-ordering strategy

Hardwiring Fans & Followers | slide 16

How we have created more effective marketingHow we have created more effective marketing

Hardwiring Fans & Followers | slide 17

How we have created more effective marketingHow we have created more effective marketingHow we have created more effective marketing

Hardwiring Fans & Followers | slide 18

How we have created more effective marketingHow we have created more effective marketingHow we have created more effective marketingHow we have created more effective marketing

Hardwiring Fans & Followers | slide 19

Sony Music Backstage has

inputted on more than 100 releases since its launch

How we have created more effective marketing

Hardwiring Fans & Followers | slide 20

How we have created a more audience focused cultureHow we have created more audience focused culture

Hardwiring Fans & Followers | slide 21

How we have created a more audience focused cultureHow we have created more audience focused culture

The digital revolution has been a blessing in disguise!

Hardwiring Fans & Followers | slide 23

Hardwiring Fans & Followers | slide 24

Benefit 2: Develop ideas iteratively

Hardwiring Fans & Followers | slide 25

Hardwiring Fans & Followers | slide 26