the music industry - what's broken (excerpt of a keynote)
Post on 17-Oct-2014
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DESCRIPTION
The following slides are a very brief excerpt of a 60 minute keynote I’m giving at Eurosonic Noorderslag, Europe’s most important live music industry conferenceTRANSCRIPT
![Page 1: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/1.jpg)
1
Experimenting with Business Models in the
Music Industry (part I)
Alexander Osterwalder, PhdAlexOsterwalder.com
Twitter: business_design
![Page 2: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/2.jpg)
the following slides are a very brief excerpt of a 60 minute keynote Iʼm giving at Eurosonic Noorderslag, Europeʼs most important live music industry conference
![Page 3: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/3.jpg)
business models
![Page 4: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/4.jpg)
The Business Model Canvas
![Page 5: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/5.jpg)
to describe, challenge, design, and invent business models more systematically
![Page 6: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/6.jpg)
building blocks 9
![Page 7: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/7.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Business Model Canvas
![Page 8: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/8.jpg)
the“old”recordlabelmodel
![Page 9: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/9.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
huge sales from few
artists’ albums
![Page 10: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/10.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
huge sales from few
artists’ albums
“new” digital channels
![Page 11: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/11.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
“new” digital channels
![Page 12: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/12.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
detecting & building talent
marketing &
promotion
“new” digital channels
![Page 13: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/13.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
marketing &
promotion
copyrighted content
“new” digital channels
![Page 14: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/14.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
copyrighted content
manufacturers
“new” digital channels
![Page 15: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/15.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The “Old” Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
![Page 16: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/16.jpg)
buzzgroup
![Page 17: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/17.jpg)
?assess the business model building blocks of the “old” model /
where are the weaknesses?
![Page 18: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/18.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
piracy
![Page 19: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/19.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
unbundling of albums into single
songs (iTunes)price of songs
tending towards ZERO
![Page 20: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/20.jpg)
but piracy is the wrong battle to fight!
![Page 21: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/21.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
distribution is a commodity, attention is
the new scarcity
![Page 22: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/22.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
talent will be discovered by
other mechanisms
![Page 23: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/23.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
social networks are what drive music sales
![Page 24: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/24.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channelsbloated cost
structure (talent discovery/marketing)
![Page 25: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/25.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
shift of the balance of power
towards artists
![Page 26: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/26.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
customer needs are not being satisfied
itʼs all about hits AND the Long
Tail of music
![Page 27: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/27.jpg)
OFFER
CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
KEYPARTNERS
KEYRESOURCES
The Old Record Label Model
hits & wannabe
hitsmass
market
Retailers TV
Radio
tours &
concertsmerchandising
huge sales from few
artists’ albums
portfolio of
star artists
detecting & building talent
distribution
channels
marketing &
promotion
marketing &
promotion
royalty paymentssubsidizing
unsuccessful artists
copyrighted content
manufacturers
“new” digital channels
distribution is a commodity, attention is
the new scarcity
social networks are what drive music sales
unbundling of albums into single
songs (iTunes)price of songs
tending towards ZERO
customer needs are not being satisfied
itʼs all about hits AND the Long
Tail of music
piracy
shift of the balance of power
towards artists
bloated cost structure (talent
discovery/marketing)
talent will be discovered by
other mechanisms
![Page 28: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/28.jpg)
www.businessmodelgeneration.comwww.alexosterwalder.com
www.businessmodelalchemist.com Twitter: business_design
![Page 29: The Music Industry - what's broken (excerpt of a keynote)](https://reader033.vdocuments.us/reader033/viewer/2022051608/54418789b1af9f034c8b4772/html5/thumbnails/29.jpg)
BusinessModelGeneration.com