tommy darker (midem 2014) - the rise of the musicpreneur
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More information and the video of the presentation here: http://www.tommydarker.com/midem2014/#musicpreneurTRANSCRIPT
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Context
Musicians don’t make a living out of their art.
The music ecosystem doesn’t work like it used to and musicians don’t have business skills.
Context
present future past
2014
Context
present future past
5-10 years 2014
Future – in 5-10 years
Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
Context
present future past
5-10 years 2008 2014
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
"I think there is a new business here, that might even be more perfect than the last one.
And you need different skills, but someone is going to win big in this business.”
2008, Seth Godin
Past - 2008
“This is the greatest moment in the history of music!”
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
- 'Are you aiming to get signed?’
- 'Why get signed? So I can sell my music in the biggest music stores in the world? But I can already do that on iTunes!’
Musician, 2008
Context
D2F system is not strong enough YET to replace the old system of business
channels and infrastructure.
Tools are not panacea, you need to have a business structure and the right mentality.
Context
#Musicpreneur:
An independent, polymath musician who takes care of both their artistic and entrepreneurial
aspect of their music career.
Why Musicpreneurs?
- No interest in day job.
- Pursue crazy ideas.
- Value that needs to be streamlined into business.
Musicpreneurs & Startups
#1. MVP (Minimum Viable Product), Prototyping
Don’t think about the perfect product.
Musicpreneurs & Startups
The product is the creative process and the experience, not the end
consumer product.
Musicpreneurs & Startups
#2. Funding
Bootstrap your ideas. Funding is needed to scale up.
Musicpreneurs & Startups
Money is a multiplier, not the foundation. Money is used to bring
money.
Musicpreneurs & Startups
#3. Definition of a startup
Ask why, test fast, keep expenses low, before you call everyone to pay attention.
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
“A startup is an organization formed to search for a repeatable and scalable business model.”
- Steve Blank
Musicpreneurs & Startups
Startups have limited resources. They can humanise. They can be
authentic.
Musicpreneurs & Startups
#4. Far from perfect
Write down 10 reasons you'll fail, find ways to tackle them.
Musicpreneurs & Startups
No matter what you got planned, once you get out in the real world,
it's all gonna change.
Musicpreneurs & Startups
#5. Business model
Turn assumptions into facts by doing.
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
“A business model describes how your company creates, delivers and captures value.”
- Steve Blank
Musicpreneurs & Startups
Without a stream of income, a new musician will never become a
great musician.
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
“When we create, our action must be impervious to value judgement. We must create for the sole purpose of creating.”
- Ghoslain Poirier
What needs to go
- The concept of 'starving artist’ - The mutual suspicion between art
and business - The notion that entrepreneurship =
moneymaking - The DIAY attitude.
Success as a Musicpreneur
#1. Focus on a specific goal and vision.
It will refine what art means to you, who you are and why you’re different.
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
“If you don’t know where you’re going, any road will get you there.”
- Lewis Carroll
Success as a Musicpreneur
#2. Communicate your vision.
The greatness of what you do needs to be ‘translated’ for other people to understand.
Success as a Musicpreneur
The quality and nature of one’s vision is appraised according to the perception
created by the context, the consistency and the progress of the
visible bit of the vision.
Success as a Musicpreneur
#3. Persistence.
Nobody owes you a living and you need to go after it. With persistence.
Success as a Musicpreneur
#4. It’s just tools, stupid.
Investing in bodies of knowledge indirectly connected with the music industry is the key.
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
“If they give you a hammer and you don’t know how to use it, you will break your finger.”
- Common sense
Success as a Musicpreneur
#5. Business model.
Organize, offer value, make profit.
Success as a Musicpreneur
#5. Business model.
Organize, offer value, make profit. What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?
For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?Who are our most important customers?
What type of relationship does each of our CustomerSegments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?
What value do we deliver to the customer?Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?
Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquiring from partners?Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?
Day Month Year
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Success as a Musicpreneur
#6. Money to scale up.
Bootstrapping in the real world first, then scaling up.
Musicpreneur and music economy
#1. Business opportunities that will attract investors.
Musicpreneur and music economy
#2. Labels will offer the means for successful Musicpreneurs to scale
up.
Musicpreneur and music economy
#3. Employment positions, boost of economy.
Musicpreneur and music economy
#4. Musicpreneurship will be something you measure.
Musicpreneur and music economy
#5. Platforms will connect people around music, free will be
profitable.
Context
Future: Musicians will essentially be their own labels.
They will manage their own teams of people and will have a proper business structure.
"A musician who is just a musician can never become a good musician”
(paraphrasing Vernon L. Smith, Nobelist in 2002, Economics)
Thank you. Let’s talk!
www.TommyDarker.com