Insomniac events
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Transcript of Insomniac events
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INTERNATIONAL EXPANSION:Germany, Japan and Brazil
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ELECTRONIC MUSIC BY THE NUMBERS
$6.2B
38%
68%
$4.2B
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INSOMNIAC EVENTS: 22-YEAR HISTORY IN NEED OF INTERNATIONAL GROWTH
Founded in 1993 In 2013, Live Nation buys 50% stake… 33 countriesIn 2014.. Partnership with Interscope for Record Label
4 Countries 250 festivals
4M Attendees
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:ECONOMIC IMPACT IN LAS VEGAS
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MODERATE INTERNATIONAL SUBSTITUTES AND RIVALRY
No. of Festivals 88 Festivals
No. of Countries
19
Revenue $386.2 million
Festival attendance
2.9 million
No. of Festivals 47
No. of Countries
9
Revenue $200 million
Festival attendance
330,000
16%
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SUPPLIERS: HIGH BARGAINING POWER
DJs are IN CONTROLDJ booking prices will keep rising… UNIQUE Flexible DJs… Unable to substitute… A USB STICK IS ALL THEY NEED
5 highest paid DJs… $175 million annually combined…11% increase
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THE HEADLINERS: LOW BARGAINING POWER
Increasing attendance… 3.4 million in 2013
Always sold out… Before Line-Up
Low Price Sensitivity…Tickets from $399-$850…81% Increase
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LOW THREAT OF NEW ENTRANTSStartup costs are outrageously high$400,000 to book a DJStaging costs are rising
* Higher expectations… Higher Production Costs
High barriers to entry
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Company Analysis: McKinsey’s soft S
•Free-spirited•Boundless playground… Music, Adventure & ArtShared Values
• World-class special effects & performers• Internationally ranked DJsSkills• “Stay Healthy, Happy and Hydrated”• HYPER-SOCIAL… PLUR culture…Trendy BlogStaff
Style • MASSIVE Creativity… out of the box • Freedom of the mind and expression
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COMPANY ANALYSIS: MCKINSEY’S HARD s
•Best Production Value… Sense of Belonging•Stages, Rides, Art, PerformersStrategy•Revolves around CUSTOMER EXPERIENCE•Immersive fan interactionStructure•Large-scale but detailed production •Precise and technical supply chainSystems
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COUNTRY ANALYSIS: BRAZILA HUB OF CULTURE, TECHNOLOGY AND CREATIVITY
No. of Electronic Music Festivals: 5
REGION Latin America & Caribbean
INCOME CATEGORY
Upper middle income
POPULATION 200,361,925
GNI PER CAPITA (US$)
11,690
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BRAZIL: POLITICAL FACTORS
GOVERNMENT Democratic Republic
FOREIGN INVESTMENT ENVIRONMENT • Open to and encourage foreign direct
investment• Fifth-most attractive country between 2012
and 2014• Largest FDI recipient in Latin America• Friendly environment for foreign investment• Government does not discriminate against
foreign investment THREAT • Corruption (43, 69/177)• Income gap is great
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BRAZIL: ECONOMIC FACTORS
GDP $11,208.1 per capital in 2013 UNEMPLOYMENT 5.9%RATE
ECONOMIC Economic Freedom Index FREEDOM 56.6 (Most Unfree) BUSINESS Take around 84 day to start a REGULATIONS business at Brazil
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BRAZIL: SOCIAL FACTORSEXPONENTIAL GROWTH
Electronic-music industry 2011 2013
Electronic Music Fans
19.5 million
27 million
REVENUE 1.13 billion
1.7 billion
• Upper Class Demographics
• End of 2014… Industry growth at 30%.
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BRAZIL: STRONG TECHNOLOGICAL FACTORS
IT ranks 53rd in the world
Increase in Infrastructure Investment
89.2% online… 3rd Largest in Social Media
HIGH potential for Insomniac Events… To Create EDC Buzz
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COUNTRY ANALYSIS: GERMANYEUROPE’S LARGEST MUSIC MARKET
No. of Electronic Music Festivals: 7
REGION OECD high income
INCOME CATEGORY High income
POPULATION 80,621,788
GNI PER CAPITA (US$)
46,100
CITY COVERED Berlin
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GERMANY: POLITICAL FACTORS
Political Background:Democratic Republic
Largest Country in the EU
High Political and Freedom Rights Rating
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GERMANY: ECONOMIC FACTORS
World’s Leading Producer of Solar and Wind Turbine Power
3rd Energy Importer in the World
GDP is $3.428 Trillion
In 2013...Germany Posted First Increase in Music Sales (1.2%)
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GERMANY: SOCIAL FACTORS
Society… Molded by Variety of Lifestyles
Family… Most Important Social Factor
Culture… Music, Literature, Art and Sports
Music Industry Flourishing
Hosted Many Large Events…
Average Visitors per year: 26.9 million
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GERMANY: TECHNOLOGICAL FACTORSVery Advanced Country...Emphasis on R&D
People are Advanced...High living standards
Recently Overtook U.K. to Become EU’s Largest Music Market
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COUNTRY ANALYSIS: JAPANECCENTRIC, ELECTRIC AND ENERGIZING
No. of Electronic Music Festivals: 3
REGION OECD high income
INCOME CATEGORY High income
POPULATION 127,338,621
GNI PER CAPITA (US$)
46,140
CITY COVERED Tokyo, Osaka
A few purely EDM music festivals taking place in Japan 2015
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JAPAN: POLITICAL FACTORS
Constitutional Monarchy
High stability and low
corruption
Strong Democratic Setupo Liberal Democratic Party (LDP)
An ideal political environment
Japan and its major cities of interest
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JAPAN: ECONOMIC FACTORS
$100 Billion loss from
earthquake
3rd largest economy
High per capita GDP (PPP)
Ease of doing businessDistance on frontier score for Japan
A Business Friendly Environment

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JAPAN: SOCIAL FACTORS
Spending habits on
experiences
Strong Club Culture
The importance of
festivals
Survey of Japanese consumers on preferences based on spending
A Change from Luxury Items to Luxury Experiences
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JAPAN: TECHNOLOGICAL FACTORS
Very strong electronics industry
Leads the world in robotics
Advanced in automation &
LED/OLED manufacturing technologies
A few examples of technology seen at EDC
A Technology Powerhouse
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COMPARISON SUMMARY BETWEEN COUNTRIES:
WHICH COUNTRY SHOULD YOU CHOOSE?Indices
International Transparency
Ease of Doing Business
29 14 120
Economic Freedom
73.3 #20 73.8 #16 56.6 #118
Competition LOW HIGH MODERATE
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POPULATION>FESTIVALS: ASIA UNDER-PENETRATED1/6TH OF THE GLOBAL ELECTRONIC MUSIC MARKET
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LDI 28
Capture market share… Compete with SFX and ULTRA
Expand Asia Fan Base ... Utilize resources...Spread EDM culture
Meet Global Demand Through International Expansion...
Summary: Insomniac Events should launch EDC in JAPAN