Creative Capital Presentation

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digital modes - a few choices for the music entrepreneur

description

Jeremy Silver's Presentation at Creative Capital

Transcript of Creative Capital Presentation

Page 1: Creative Capital Presentation

digital modes - a few choices for the music entrepreneur

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Creative industries segment analysis

Manual

Physical

Digital

CraftsArt &

antiques

Architecture

Design & designer fashion

Publishing (incl. e-

publishing)

Music (incl. live

music)

Radio & TV

Film

Computer games

Artefact

MediaService

Creative process

Output

Performing arts

Technology-aided

Social media

Advertising (incl. display & search)

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2008 global music sales

recorded music sales $18.42bn (-8% yoy)

recorded music sales in 2000 $30.81bn

cd sales down 15% to $13.83 billion

digital sales up 24% to $3.78 billion

(source ifpi)

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EMI EBIDTA March 09 - £163m (up 219.6%)

Digital 21% (up 6.25%)

Warner 2008 Net loss $68m ($37m) Digital 26% (up 6%)

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LiveNation $102.7m Q1 09 loss ($37.2m) Q1 Revenue $499.3m – 6% down Concert attendance

US fell 23% International rose by 17% Revenue per fan climbed 6% to $66.50

Number of live sponsors dropped 42% but total sponsor revenue climbed 17% to $21m

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ITV Loss before tax of £2,732m (2007: £188m) Ad revenue £1,425 (2007: £1,489) £64m Total TV ad market decline in 2008: 4.8% H1 decline 0.6% BUT H2 decline 8.8%

$55.3m Q1 09 loss ($244.3m full year 08) Radio revenue fell by 24% Outdoor by 29%

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Nendo 08 results £1.8bn profit on £12.2bn revenue – up 8.5%

Shipped 25.9m Wiis and 31.1m DS

Runescape 1 million subscribers – 3 languages

profit in 2006 - £15m

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google

Q1 09 revenue: $5.51 (6% up on Q1 08)

’08 total revenue: $21.79bn ’08 net income: $4.22bn

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Share of advertising spend by media

Source: ofcom, 2008

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Internet adspend per capita

Source: ofcom, 2007

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UK physical digital music market

source: OECD, 2006

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uk and eu government

eu copyright directivecreative economy digital britain

copyright in 21st centurytechnology strategy board

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consumers

don’t care about companiesunderstand brands

are fickle and variedget most music for free

will pay for great experienceswant to get involved and interactare more sophisticated than the

technology

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entrepreneurs

persuade consumers to change behaviour

save time and moneyentertain and compelbe completely new

use technology in smart waysdo simple things really well

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the player’s choice

play by the bookfly in face of the law

muddle on through

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venture-backed start-upsare major labels’ revenue stream

new technologies don’t necessarily

equal new revenue streams

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areas of focus

a&rubiquitous platforms

recommendation & discoveryremixing and mashupsexploit meta-data

monetise p2pcharge for access

resolve rights licensingmake smart tech choices

apply music models to other media

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digital proverb

When music like sperm swims freely

among every body on digital network

many data babies are worth collecting

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