sonybmg - leading case 2008
DESCRIPTION
Sony BMG was looking to enter the market with a differentiated service that was unlike any other competitor offering. •The approach taken by Mooga was seen as ground breaking and market leading •Mooga is currently connected in Argentina and being connected in other four South American countries •This is the first mobile music portal with intelligence in the market.TRANSCRIPT
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Everybody gets the same
• Content providers and Carriers select the “hottest” and latest content to be marketed to consumers.
• The best sellers of each period are profitable, so therefore “safe”.
• Consumers are constantly updated with new content as operators continuously reinvent their portfolios.
• No longer “hottest” = No longer relevant or profitable.
NEW BeyonceSong
1 yearlater
BeyonceSong
6 Monthslater
BeyonceSong
Static limited offer placement
•The Pareto Principle: 80/20 rule, traditional pattern of sales concentration.
•C. Anderson (WiredMagazine‐2004): The Long Tail
• By lowering inventory storage, distribution and search costs, digital markets have the potential to increase the collective share of niche products, creating a longer tail in the distribution of sales.
• Now there are 2 markets to attack:– Old Market: Top Sellers.
– New Market: Long Tail.
What percentage of your items are you selling at least once a month?
•James Surowiecki (2004): Wisdom of Crowds
•A diverse collection of independently‐deciding individuals is likely to make decisions and predictions better than individuals or even experts.
–Lego: encourages its fanatical customers to design their products.
–InnoCentive.com: Companies pay solvers from $10k to $100k per solution. More than 30 percent of the problems posted on the site have been cracked.
The Many Are Smarter Than the Few
Long Tail + Wisdom of crowds
•Amazon: over 25% of Amazon’s book sales come from books not available in brick and mortar stores.
•Rhapsody: 22% of sales are from songs not played on traditional media. 53% of 750k Rhapsody´s songs are streamed at least once a month.
•Netflix: 20% of DVD rentals are documentaries, B class movies and niche movies.
•Google: Niche advertisers provide Google over 60% of their Ad Words revenues
Make everything available, help your customer find it and you will increase your sales.
Dynamic personalized one to one offer
• Adaptive subscriber storefronts lead to infinite mobile shelf space and time
• Subscriber analytics and recommendation engines allow the long tail of niche markets to form across the content universe
• Incentive‐based subscriber self‐distribution allows for spread of mobile content and for easier content discovery across users
Spiderman I Clips
Beatles Oldies
Star Wars
2005 Spring Fashion Clip
20,000 80,000 and ongoing
Black Eye Peas Songs
Elvis’s Hits
Spiderman III
FergieSongs
Content Items
Dow
nloa
ds
Viral self learning entertainment ecosystem incorporating Artificial Intelligence techniques to understand, track, predict & recommend
content based on individual user tastes, downloads & popular contents.
• Sony BMG was looking to enter the market with a differentiated service that was unlike any other competitor offering.
• The approach taken by Mooga was seen as ground breaking and market leading.
• Mooga is currently administrating SonyBMG´s portal in Argentina, Chile and being launched in other Latamcountries.
• This is the first mobile music portal administrated by artificial intelligence in the market.
• Auto Context– Classification of existing meta‐data/information/classification can be used to automate the process of contextualization.
The SONYBMG Contextual Framework has been automatically built with our autocontext scripting engine using SonyBMG´s
existing metadata, enabling a rapid deployment.
Song Title Artist Name Presentation Name Genre ISRCGrid
NumberType Filename
I Want You (Album Version)
Bob DylanI Want You (Album Version) ‐ Bob
DylanRock AAAA XXXX
partnersCELLENTaudiomp3_32k
partnersnetpeopleaudiomp3_32k/BobDylan_IWantYouAlbum
Version.mp3
Billie Jean (Single Version)
Michael Jackson
Billie Jean (Single Version) ‐ Michael
JacksonPop BBBB YYYY
partnersCELLENTaudiomp3_32k
partnersCELLENTaudiomp3_32k/MichaelJackson_BillieJeanSin
gleVersion.mp3
Gotta Move Faster (Album Version)
Sean KingstonGotta Move Faster (Album Version) ‐ Sean Kingston
Hip Hop CCCC ZZZZpartnersCELLENTaudiom
p3_32k
partnersCELLENTaudiomp3_32k/SeanKingston_GottaMoveFas
terAlbumVersion.mp3
Best Of You (ALERT TONE)
Foo FightersBest Of You (ALERT
TONE) ‐ Foo Fighters
Rock DDDD WWWWpartnersCELLENTaudiom
p3_32k
partnersCELLENTaudiomp3_32k/FooFighters_BestOfYouALER
TTONE.mp3
• SonyBMG´s portal structure– Top 5 Section
• Premium placed content defined by SonyBMG
• Shows same content to each and every user (SonyBMG´s request).
• One and only section not being administrated dynamically by Artificial intelligence.
– Artists• Fully dynamic section administrated by AI.
• Presents relevant content according to each user profile.
• All content presented in context.
Mooga allows to mix dynamic and static sections to promote specific content due to marketing needs.
• SonyBMG´s portal structure– Context, context, context!
• Content is placed in easily recognised categories.
• Provides with ALL available content related to the category.
• Takes full advantage of IMPULSE increasing multiple transactions per session.
– Recommendations• Fully dynamic section administrated by AI.
• Presents relevant content according to each user profile.
• All content is presented in context.
In order to find a content, you must know what you are looking for.
Mooga discovers relevant content for each user.
• SonyBMG´s portal structure– Search functionality
• Uses a “wisdom of crowds” ranking algorithm.
• Its the quickest path to access items of interest.
• Ranking is dynamic and continuously changes as the user activities evolve.
Search results provide a 3 tier view to useful and relevant content as the crowd knows best
what everyone wants!
• SonyBMG´s portal structure– Browsing functionality:
• Mooga uses a “Top Down” approach.
• This is the most effective path for a user to access items of interest.
• Every list have been structured using intelligence based on entire portal activity of users.
Ease of content access coupled with implicit recommendations powered by Artificial Intelligence
• Give each customer WHAT THEY WANT, not what you think they
need:– Static Top5 made 25% of total sales meanwhile the Dinamic Storefront and
the Recommendation engine (AI) administrated 75%.
– Up to 50% of users who clicked on a recommendation ended making a download.
• CONTEXT IS KING– Almost 20% of users made multiple downloads from same artist.
Hey, I don´t like fish!
• Give customers INFINITE CHOICE and they will make infinite choices– 90,7% of the content available was download at
least once.
– 98,9% of artists got at least one download.
• Help your customers FIND RELEVANT CONTENT– More than 22% of subscribers used the
recommendation engine.
– 24,3% users made more than one download in a single session.
Beyond the tip of the iceberg