Introduction to Disciplined Entrepreneurship Workshop MGF Deck #1
Azumi deck (patterns of entrepreneurship)
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Music needed a new model. We built it. Music needed a new model. We built it. CULTURE’S PLAYGROUND AZUMI Max Lawrence [email protected]
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Transcript of Azumi deck (patterns of entrepreneurship)
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 [email protected]
Max Lawrence – Co-Founder: Web Design / Dev.Music Entrepreneurship – New York University. Cantora [email protected]
Leonard Truong – Co-Founder: Head EngineerComputer Science – UC Berkeley. Tesla Motors. [email protected]
Nick Panama – Advisor Co-Founder of Cantora [email protected]
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 [email protected]
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
