Local tunes Web & Mobile Apps: Design & Development NYU Stern – Professor Norman White 2013
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Transcript of Local tunes Web & Mobile Apps: Design & Development NYU Stern – Professor Norman White 2013
Local tunes
Web & Mobile Apps: Design & DevelopmentNYU Stern – Professor Norman White 2013
: overview
MUSIC INFLUENCES EVERY ASPECT OF LIFE, CREATING VALUE FOR A BROAD RANGE OF BUSINESSES FROM CONCERT PROMOTION, MERCHANDISING, VENUES, AND BROADCASTERS TO DIGITAL/SOCIAL PLATFORMS, DEVICE MANUFACTURERS, SEARCH ENGINES AND RETAILERS +500 LICENSED MUSIC SERVICES SOCIALLY INTEGRATED OFFERING OVER 30 MILLION TRACKS, PROVIDING MASS MARKET/LOCAL NICHE REACH FOR GEO-TARGETED CAMPAIGNS BASED ON PROFILE DEMOGRAPHICS, MUSIC TASTES AND MARKET TRENDS“ACCESS” MODELS --SUBSCRIPTION, STREAMING & PRODUCT BUNDLING-- DRIVING DIGITAL COMMERCE AND MOBILE INTERNET EXPANSION
: industry*10-K Annual Report – Warner Music Group 2012**Digital Music Report 2013 – International Federation of the Phonographic Industry (“IFPI”)***10-K Annual Report – Live Nation Entertainment, Inc.
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
23.3b (US, Japan, Germany, UK, France top markets)*
5.6b (over a third of total industry revenues 34%)**
3.9b*
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
RECORDED MUSIC
DIGITAL
MUSIC PUBLISHING
LIVE NATION is the largest live entertainment company generating 22,000 live music events in 2012:
concert business 3.9b ticketing 1.4b
artist management 400m sponsors/advertisers 248m***
: market trends
SOCIALLOCAL
MOBILE(“SOLOMO”)
: market trends
GROWING LOCAL Mobile Internet users reach route their trip home, read reviews of local
restaurants and find the location of a nearby business. Local repertoire dominates the charts in many
major markets including France, Germany, Italy, Spain and Sweden*
ELECTRONIC DANCE MUSIC (“EDM”)Creamfields, Sensation, Beyond Wonderland, Euphoria, Stereophonics,
Swedish Mafia, I Love Techno, Electric Zoo, Ultra Music Festival and Luciano & Cadenza Vagabundos among other cases of explosive growth and attractive
fan demographics
DIGITAL OMNIPRESENCEDigital channels help optimize monetization, better search and social presence
ROCK, COUNTRY, LATIN**Country digital album sales up 38%
Latin digital album sales up 22%Rock digital album sales up 18%
BACK TO PHYSICAL? 5th consecutive year - more vinyl albums were purchased in 2012 than any other year (Nielsen SoundScan). Vinyl album 4.6 million in sales. In markets
such as Japan and South Korea, cds and dvd music video sales increased strongly in 2012.
QUALITY AND HONESTY“Consumers want to enjoy professionally produced content of a high
standard” - Placido Domingo, Chairman IFPI
*Digital Music Report 2013 - IFPI** The Nielsen Company & Billboard’s 2012 Music Industry Report
: consumer motivations
KEY DRIVING FACTORS → ABILITY TO LISTEN TO MUSIC FOR FREE + DISCOVERY ELEMENT
“free” selling points
Cost: zero or approaching zeroPortability: across all devices
Mobility: wireless access to musicChoice: access to any song ever recorded
Remixability: freedom to remix and 'mashup' music
WE ARE ALL IN IT TOGETHER
“Think about that. It's the opposite of the rock star ethos wherein I make it and I leave you behind, I fly private and I pay you lip service but I want nothing to do with you. The deejays are all
regular people. It's stunning how normal they are, other than the wear and tear of the travel. And they like the money, who
wouldn't, but spinning doesn't seem to be a stepping stone. Everybody in straight music wants to be something else, a TV star, a clothing magnate. Deejays want the endorsements, but mostly
they want to entertain, they want to motivate the crowd.” – fragment from “Electronic Music” by Bob Lefsetz, industry blogger
(www.lefsetz.com)
NY Live Music Venues - Paco
LocalTunes will focus on Manhattan & Williamsburgh in the initial stage. The Bowery Presents is the main venue network for live music in NY, including
Mercury Lounge, The Bowery Ballroom, Music Hall of Williamsburgh, Terminal 5 and The
Wellmont Theater. With a rich rock, pop, indie and jazz programming including both established
and upcoming artists, The Bowery has a strong online presence with ticketing services
onsite.
Other important venues and performing centers mainly for established acts are Radio City
Hall, Manhattan Ballroom, Barclays Center (Jay-Z in Brooklyn), Madison Square Garden,
Webster Hall.
For smaller acts and upcoming bands, The Bitter End, Le Poisson Rouge, Rockwood Music
Hall, Piano’s and the renown Mercury in the Village among many others.
: venues
GROWTH IN EVENT DISCOVERY APPS - Liora→ LOCAL SEARCHES
Total searches: 113.1 million for mobile phones and 38.7 million for tablets (December 2012)
App-based local searches nearly doubled in the past two years
→ SoLoMo OPPORTUNITY At the very moment a potential consumer is most likely to become an
actual customer
→ DISCOVERY BRINGS DISCOVERABILITYEntrepreneurial challenge –event discovery is not only pushing demand
but also event discoverability
→HIGHER CONVERSION77% of those who conducted a local search on either a mobile phone or
tablet went on to make a purchase either in-store, online or over the phone
→ “I WOULD HAVE GONE TO THIS EVENT IF I HAD KNOWN ABOUT IT”
Live Nation sells 60 percent of available tickets on average, a $2.3 billion-a-year pain point
: background
COMPETITIVE LANDSCAPE - LioraBoth music discovery and event discovery inform our product value
proposition though we believe that event discovery apps are more relevant and direct competitors
Event Discovery▲SONGKICK
Personalized concert calendar based on user’s bands and location The app allows the user to browse concerts anywhere, see ticket options and invite friends. The app recently added a feature of in-app ticket purchases, but this feature is limited to a
small number of venues and concerts. While the app gets great reviews for event planning and for push notifications targeted at the user’s personal
preferences, it fails to be a source of convenient and appealing discovery based on general and spontaneous preferences.
▲EVENSTER Pulls in 600,000 events per day across North America and Europe via the Zvents API, offering
concerts, festivals, nightlife hotspots, theater showtimes, and sports events by using a recommendations system that learns user
tastes through voting and allowing other users to see which events are trending. Not focused on music and very heavy on events that might be
encumbering to the user’s experience.
▲EVENTFUL 70% of the events listed in the app are concerts though app is not tailored to music
▲WILLCALLPicks concerts in town, strikes deals with the promoters, and sells tickets through its app in
the few days leading up to the show. You can open the app to check out available gigs or wait for push notifications about newly added
concerts or alerts about which shows friends are buyingtickets to. WillCall’s value-add is solving the low attendance problem.
: sharks
Music Discovery - Liora+500 licensed music services platforms including Spotify, Last.fm, Deezer and
Pandora as key players and also:
▲SPOTIFYSpotify recently launched an enhanced influencer following system so that
expert listeners, celebrities and big name artists can publish their playlists to followers and make the service a stickier social
network. This is an asymmetrical following system, and a return to a more personal mode of discovery.
▲TWITTER MUSICTwitter has taken over We Are Hunted, a service for finding new music online,
and plans to use the technology to build a Twitter Music mobile app. The app is a personalized music-recommendation
program that uses SoundCloud to stream songs. The app incorporates four logical-sounding tabs: Suggested, which suggests
music based on users’ Twitter following activity; #NowPlaying, which features songs tweeted with that hashtag by
people a user follows; Popular, which showstrending songs; and Emerging, which shows rising acts.: sharks II
: digital omnipresence
LocalTunes – Value Proposition - Liora1. Our music focus will generate trust in a strictly-music service, providing an
operational advantage since resources will be solely allocated to building relationships in the live music industry, as opposed to being spread out to other events.
2. The extreme focus in local is also an important advantage, since it will guide resources
to create an effective way to engage a very specific but still wide audience – the NYC music
event audience
3. Curated consumer experience and not volume of offering: app design will exceed
sophisticated users’ expectations for a sleek & light app that is up to par with the feel they
expect to get from the events themselves, thus providing a holistic experience not provide
by other event apps.
4. Our team has strong ties with the NYC music scene as members of local bands who
have performed in many venues around the city and as part of the entire music scene
: competitive advantage
Product Overview and functionality- tech team
Including: screenshots, main searches, main functions, moods
: Product
PRODUCT OVERVIEW
MOODS SELECTION
• Using moods, instead of category to classify music.
• Using different color stands for different moods of music.
• Flatten user interface, easier but richer.
LIST VIEW V.S. MAP VIEW
• We use list view to make RANKING happens.
• We use a map view to simplify the way of getting GEO info.
• Data mining of user behaviors provide us a way to be better.
• All these based on a powerful backend.
MUSIC INFO
• Free sample tastes through iTunes.
• Creating events to your calendar.
• Call for tickets or RSVP immediately.
BACKENDS
DEVELOPMENT OVERVIEW
PROJECT MANAGEMENT
• We use pivotal tracker to control the process of development.
• We develop in sprint pattern.
• Work remotely but better communicate.
SUB VERSION CONTROL
TECH ANALYSIS
JQUERY MOBILE
• Easy to learn• Cross-platform• Lightweight• Markup-driven, fast develop.• API support
GOOGLE APP ENGINE
NO DB?
Tech slides (diagrams, how does the technology work, anything you
think is good) – Tech team
: Technology
why is LocalTunes better positioned to succeed? - Liora1. Our music focus will generate trust in a strictly-music service, providing an
operational advantage since resources will be solely allocated to building relationships in the live music industry, as opposed to being spread out to other events.
2. The extreme focus in local is also an important advantage, since it will guide resources
to create an effective way to engage a very specific but still wide audience – the NYC music
event audience
3. Curated consumer experience and not volume of offering: app design will exceed
sophisticated users’ expectations for a sleek & light app that is up to par with the feel they
expect to get from the events themselves, thus providing a holistic experience not provide
by other event apps.
4. Our team has strong ties with the NYC music scene as members of local bands who
have performed in many venues around the city and as part of the entire music scene
: competitive advantage
Paco (Marketing + Venue/artist acquisition)
Venues, Universities, industry bloggers, online travel agencies (“OTA’s”), social media, artists (spokepersons),
recording studios guerrilla, rehearsal rooms, promoters, booking agents.
Target Market: students undergrad,
young professionals, tourism, push it through bloggers, NYC authorities
: marketing plan
Future scope - Liora
Data analytics to better know consumers, to create better recommendations and curate moods better:
establish a “For You” tab of nearby events LocalTunes thinks you’ll like. Best case: surface upcoming concerts
that the user either already had tickets for or would love to go to. Know the degree of “love for an artist based
on number of songs on iTunes, Spotify, Last.fm, based on searches, etc. If it’s a really loved artist – maybe
suggest them even if they are a bit further away.
Very easily scalable to other cities and other countries
Native social element to notify where friends are going
Key component should be buying the tickets
: marketing plan
Team - How amazing we are, be sure to
include relevant experience to the project
and any previous success stories – Everyone give your three sentences.
: team
Future scope - Liora
Data analytics to better know consumers, to create better recommendations and curate moods better:
establish a “For You” tab of nearby events LocalTunes thinks you’ll like. Best case: surface upcoming concerts
that the user either already had tickets for or would love to go to. Know the degree of “love for an artist based
on number of songs on iTunes, Spotify, Last.fm, based on searches, etc. If it’s a really loved artist – maybe
suggest them even if they are a bit further away.
Very easily scalable to other cities and other countries
Native social element to notify where friends are going
Key component should be buying the tickets
: marketing plan
Business Model - PacoRevenue sources:
•commission, advertising, sponsored links (like Google search), timing•* Possible Premium service??
• * Expenses: costs and timing• * Cost drivers• * Perhaps an excel with forecasts
: business model
Exit and Valuation - LioraSince the competitive landscape is still evolving, and is tangent to both the music industry and the live events industries, there is a strong prospect of an exit – either
by selling to a large live music brand like Live Nation or to
a technology company that wants to expand to a
physical presence like Spotify• Instagram
: exit strategy
: thank you