Pitch

 

Team

 

 

Tania Aldous, Andrei Hogea, Tirdad Kiamanesh, Jenna Petersen, Jingwen Yang

 

 

Instructor


James Russell ( 7 weeks class )

 

 

Overview of the project

 

In this project, we are challenging the traditional business model of record labels. We believe that in the digital era the role of the record labels in the music industry will change and the current model will outdated. We find opportunity in bringing fans, artists, and producer together to create a unique experience for everyone. Pitch is a community to rally behind for fans, funding and risk mitigating platform for artists, and stability and creative control for producers.

 

Responsibilities

 

Secondary Research, Design Research, UX Design, Visualizing the Concept 

" Anyone who's an executive at a record label does not understand what the Internet is, how it works, how people use it, how fans and consumers interact - no idea. I'm surprised they know how to use e-mail. "

 

- Trent Reznor

Age of independent artists

 

 

Independent artists have grown 600% from 2003-2012. Because of online streaming service and social media, artists are not limited to the labels to distribute their music or reach out and increase their fans.

In the same period, the market has shrunk. It means more people are getting a smaller share of the revenue. The music industry has rebounded in the last year. Break-even point reaches the growth of streaming services.

 

In the Physical era, the only way to enter the market was controlled by labels.  

The graph above shows the risk of the investment for labels. They averagely spent $15k on each album and 90% of times the album couldn't return their investment. 

Despite the high risk, label record companies invest more than any other companies in R&D.

Labels grew artists over time - through funding, marketing, services. They developed relationships with artists, and they were a necessity to make a label.

 

Also, labels were tastemakers for the fans. They curated artists, for a unique sound. 

" The Internet was a saving grace for promoting and exposing and even creating. It's a parallel world to the music industry that already exists, and I'm glad to be a part of it. "

 

- Chuck D

The shift in the power in digital era

 

In the digital age, the label still assumes high risk but no longer has exclusivity. Artists can publish their art through social media and streaming services. If they can cut the noise, they do not need labels anymore.

- The value chain is shrinking. Distributors are being forced out with the move to digital downloads.

 

- Artist’s have more bargaining power with fans. New contracts are negotiated where artists retain rights.


- Startups like amuse are looking to empower the artist.

 

- Outside of the “Big 3”, Labels are becoming small and niche

Interviews Quotes

 

“The best model is smaller labels developing artists, given a moderate number of funding.”

" In the digital era, Record Labels aren't built to support Fans or Artists."

Studio Owner

Studio Owner

“I don’t think I can name a single label….

                   … maybe one?”

Music Fan

“I would like to support my favorite artists but

I do not have any channel to do it now.”

Music Fan

" Labels who are focused on a specific type of music are more successful than those who focus on local musicians, they can connect local musician with the same genre of music and have a concert together " 

Musicians

Illustrations attributes: (vecteezy, insanity100) , (freepik)

"I've had big record label presidents look me in the face and say, 'Your music sucks, you don't know who you are, your music is all over the place, and we don't know how to market this stuff. Pick a lane and come back to us."

 

- Bruno Mars

 

Pitch brings Fans, Artists, and Producers together in an ecosystem to create unique experiences for everyone. We provide a community to rally behind for fans, funding and risk mitigating platform for artists, and stability and creative control for producers.

We realized that producers have a significant impact on the music industry. They mentor artists and have good knowledge about consumer taste. Producers are the center of this concept. We are going to bring them out of the backstage and give them a voice. 

 

Scenario: 

Copy of #6 - Final VC Pitch (19)

Meet the Dr. Teeth & the Electric Mayhem. A talented garage rock band.

Copy of #6 - Final VC Pitch (20)

They promote themselves by sharing their music on Youtube.

Copy of #6 - Final VC Pitch (12)

But when they receive the loyalty, the revenue from streaming is low.

Copy of #6 - Final VC Pitch (34)

Copy of #6 - Final VC Pitch (14)

One day, a producer on twitter invites them to a new platform.

Copy of #6 - Final VC Pitch (15)

They create profile for their band and add their music

Copy of #6 - Final VC Pitch (16)

To launch a campaign, they need to choose a producer to work with.

Copy of #6 - Final VC Pitch (17)

They check out producer Ree profile and found some great works.

Copy of #6 - Final VC Pitch (18)

They check the price and decide to produce an album.

Copy of #6 - Final VC Pitch (27)

Copy of #6 - Final VC Pitch (28)

One day she receives a notification about suggesting a campaign of a band that she might like.

Copy of #6 - Final VC Pitch (29)

She checks the Dr. Teeth and The Electric Mayhem campaign.

Copy of #6 - Final VC Pitch (30)

She finds they work with Ree, the producer who she likes.

Copy of #6 - Final VC Pitch (31)

She listens to the sample music and she really enjoys them.

Copy of #6 - Final VC Pitch (32)

She decides to support the campaign, and she selects $250 for two concert tickets.

Copy of #6 - Final VC Pitch (33)

The band got supported for their album, Ree enjoys working with her favorite sound, and fans enjoy their perks and live music.

How does it make money

 

The risk of the new model is so less than the previous model as the money for the album is raised by fans before the production.   

Big data can generate additional revenue streams.

The label facilitates a new music-making and music-consuming community of artists, fans, and producers. By amortizing risk across a large group of passionate fans who believe in an artist, the label is free to invest more.

 

Artists don’t have to worry about recouping to the label and losing money on their art. They also gain valuable mentorship from their producer. Producers get steady work and more predictable income with no risk of losing money from an unprofitable artist

Roadmap for achieving the position as a platform to support musician and create incredible music.

 

How does it make money

UI / UX design for web and mobile