Magnatune explained to suits

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Information about Magnatune explained to suits

Published on March 14, 2008

Author: johnbuckman



Magnatune presentation for traditional business people (bankers, industry executives, marketing folks) in traditional positioning and market segment terms.

Magnatune is... Next-generation record label Combines B2C and B2B B2C: downloads and CDs B2B: music licensing for commercial use

Main Consumer Benefits Selected music Full Preview Fair price High quality product

Selected Music Consistent quality Hard-to-find genres Manageable size

Preview Listen to everything for free Never-ending genre mixes High audio quality MP3 streams

Fair Price Pay what you want 50% for the musician No registration

Quality Product MP3 and CD quality downloads Allows later re-download No DRM

Leveraging consumer anger at the Music Industry Limited musical diversity, poor quality CD prices too high Ripped-off musicians speaking out DRM Symptom: using P2P is acting as a just-cause revolutionary

How music demand is typically created Traditional command- and-control marketing Grass-roots uprising quot;Customers also boughtquot; Try-before-you-buy (Magnatune’s focus)

Try-before-you-buy: the old ways Radio MTV Concerts Mix tapes from friends

Try-before-you-buy: many new ways 30-second snippets (iTunes/Amazon) quot;Conceptquot; compilations (quot;Buddha Barquot;) Recommendation web sites P2P used for previewing Mix CDs from friends Social MP3 sharing DJ culture & raves Internet radio

Music Biz isn't just CDs Most music heard is not at home, but in a business/commercial setting Consumer shopping experience is increasingly staged, with music in a key role Music is branding TV commercials make hits Tie-ins are increasing Music biz becoming like book publishing


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