midem academy 2013 Music Industry 101 module Traditional and New Revenue Streams Emilien Moyon, PhD, Full-time Professor, Berklee College of Music

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1 midem academy 2013 Music Industry 101 module Traditional and New Revenue Streams Emilien Moyon, PhD, Full-time Professor, Berklee College of Music

2 Table of Contents 1. Overview 2. Observations 3. Four logics to increase your revenue

3 Revenue Streams Overview Looking at revenue streams from a resource perspective = - Performance - Song & Composition - Recorded Music - Brand - Fans

4 Performance - Concerts, live-performance - Salary as a member of an orchestra or an ensemble - Recorded performance - Live streaming show (Stage it)

5 Song & Composition - Public Performance Royalties - Mechanical Royalties (on records) - Synch Licenses - Sheet Music Sales - Digital distribution - Ringtones Revenue

6 Recorded Music - Record sales - Royalties (Radio, Neighboring rights royalties) - Synch Licenses - Digital Sales - Digital Performance Royalties (Internet radios, Sirius XM, Pandora) - Streaming

7 Brand - Merchandise Sales - Books, movies, TV Shows... - Licensing (ex : Video games) - Product Endorsements - Sponsorship -...

8 Fans - Fan clubs - Crowdfunding -...

9 Live performance Commission Record Royalty Grants and Awards Label Advance Other From the artist point of view (Thomson & Cook, 2011) 9% 9% 6% 5% 11% 60%

10

11

12 From the industry point of view (Digital Music News)

13 Observations - Digital music/crowdfunding are the only real «new» revenue source - Traditionally, artists & firms were focusing on 1/2 sources - Now, many artists & firms develop multi-source strategies - More flexibility for artists - A new approach for the majors to balance their portfolio - Key driver of business model innovation

14 4 LOGICS TO DEVELOP REVENUE STREAMS

15 1. Expand your Channels Revenue = Volume x Price/Unit

16 However...Differenciation is the key

17 17

18

19 2. Use your Resources More Efficiently Reduce organizational slack

20 2. Use your Resources More Efficiently

21

22 3. Transform the sources of costs into sources of revenue

23 4. Connect the dots

24 4. Connect the dots

25 4. Connect the dots

26 4. Connect the dots

27 4. Connect the dots

28 4. Connect the dots

29 4 Logics to Develop Revenue Streams - Expand your channels - Use your resources more efficiently - Transform costs into revenue - Partner outside your industry to optimize your value creation potential

30 Thank you!

31 Emilien Moyon, PhD Full-time Professor at Berklee College of Music Co-founder of BusinessModelCommunity.com Your photo here

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