Kolaborasi Ide - Music Industry Episode

Music Community Development Program

Presented at Kolaborasi Ide, May 18th 2015

Problems

–Albert Einstein

“We cannot solve our problems with the same thinking we used when we created them.”

Human ResourcesFinancing

Entrepreneurship

Business Environment

Technology

Opportunities

Human Resources

Ecosystem

Music ecosystem starts from musicians

Solutions?

The Idea

Young Musicians

Facilities

Facilities

Facilities

Facilities

Facilities

Supporters

Supporters

Goals

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• To build a sustainable system which produces emerging music creators with:

• Possession of skills needed in the new music industry.

• Global point of view.

• Able to find the “Indonesia banget” character so we can compete in global music market.

How to pull it off?

Streaming Music

–William Gibson

“The future is already here — it’s just not very evenly distributed.”

State of Global Digital Music

• 43 million tracks licensed worldwide.

• US $ 6.9 billion value of digital music business.

• 400+ digital music services worldwide.

Source: IFPI Digital Music Report 2015

Why Streaming?• Streaming will be main gateway

to the future of music industry which will take us to the largest music consumption era in human history.

• Streaming usage is fully measurable; The future is data (IFPI has confirmed 16 countries have integrated audio streaming into their singles charts).

Encouraging Numbers

• Forecast: the global music streaming service market to grow at a CAGR of 12.57% through 2019.

• Digital revenue overtakes CD globally, 48% comes from streaming. Also, streaming passes CD sales in US in 2014.

• Apple are finally into streaming; Spotify company value passes US total recording industry.

• In Sweden 92% of digital revenue comes from subscription, while streaming in general make up 75% revenue in Norway, 30% in Australia and NZ: 30%.

• Most streaming consumers are under 30’s.

Misconception• Costumers: You can’t

stream music in Indonesia reliably because streaming needs a super duper ultra fast internet (sambil nonton YouTube)

• Artists: Streaming services don’t pay artist well (artists are never paid “well” since the 90's)

Problems

• .

Problems

• Buy vs Access mindset

• Bandwidth quota

• Payment methods (there are gift cards, btw)

How they pull it off in Norway

How can we pull it off?• Educate the market.

• Acquire local artists as many as possible.

• Invest in creating local playlists.

Family Friendly Music Festivals

WHY?

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• In 2013, GVA to UK economy equals 15,78 trillion IDR • GVA to Indonesia economy equals 2,5 trillion IDR

(including performance & arts)

LIVE MUSIC = LUCRATIVE BUSINESS

• Festival Awards UK survey shows 7% of festival goers are above 60’s.

• First recognisable festival was Festival of Britain in 1951. • There could be some people who witness the first festival

in Britain still attending festivals.

Festivals are not only for the 25’s

Parenting website gurgle.com survey shows one fifth of parents have taken an under-five to a festival.

Bring kids to festivals