Disruptive Multimedia

CANTORA

DMM Disruptive Multimedia is a DirectToFan IOS app that allows musicians to track, interact with, and monetize their fan bases. The project was developed by Ryan Leslie.

Features: - Rolodex of all participating Fans. - Analytics & History of Purchases and Interactions. - Monetizing fan relationship through subscription packages. - Direct Artist-Fan interaction through App & Texting.

Price: - $200/month

Problems: - Most artists are already active on several established channels: Facebook, Twitter, Youtube.

- Platforms like FanBridge provide a single homepage to publish content, track analytics, and manage ad campaigns.

The DirectToFan Method - Grow your Fanbase. - Engage them personally. - Monetize through multiple channels.

Other DirectToFan Platforms BandPage, FanBridge, ReverbNation, Pledgemusic, TuneCore, Zazzle, Cafe Press, CD Baby, Constant Contact, farugi.com, Flaccid-Rock.com, Music Glue, kizym, Nimbit.

CANTORA

BandPage: A Case Study Musicians use BandPage to create a profile that includes bios, photos, videos, songs and tour dates, as well as items for sale (tickets, merchandise and VIP experiences). It operates on a freemium model for $1.99 a month or $19.99 a year, a plus membership buys a souped-up version. (Rihanna and Beyonc are just two of the half a million artists currently using the site.)

Among its alternate expanding revenue streams: BandPage Experiences, launched in 2013, which allows fans to purchase special events including meet and greets and secret shows to fans. Artists take home 85% while BandPage nets just over 10% after transaction fees. This let musicians earn outside the traditional touring cycle, meaning they can sell special experiences to generate income even when in the studio.

Multi Platform Widget can be added onto:

- Spotify - Facebook - Soundcloud - Xbox - Google Search (Now, if you Google a BandPage-powered artist, their tour dates will show up to the right of search results.)

https://press.spotify.com/hk-en/2014/08/13/spotify-and-bandpage-partner-to-help-musicians-sell-directly-to-fans/ https://www.bandpage.com/artists/tour https://www.bandpage.com/support/how-store

Artists on BandPage (selling experiences):

- Ariana Grande, Miranda Lambert, Tea Leaf Green, Stone Foxes, Carrie Underwood, Lil Wayne, John Legend, Beyonce, Rihanna , P!nk , Usher, Common, Kelly Clarkson.

CANTORA

FanBridge: A Case Study FanBridge is one of the most popular fan relationship management (FRM) platforms with an impressive roster of clients including Lil Jon, Lady Gaga, John Legend, Imogen Heap and Carole King. FanBridges platform helps bands grow, engage and eventually monetize their fan following.

FanBridge allows artists to manage their social media accounts via one convenient platform. Fan bridge allows coordinated Tweets, Facebook Posts, Soundcloud releases with one click. It also provides data analytics, marketing coordination, and monetization tools.

FanBridge Overview Video

Price:

Silver: $15.99/month Gold: $39.99/month Platinum: $103.99/month

CANTORA

Electronic Sector & Dillon Francis: EDM Biz worth $6.2 Billion. - IMS Business Report

Number of DJs with 75,000+ fans on Facebook: 1000 - TopDeeJays.com Number of DJs with 100,000+ fans on Facebook: 800 - TopDeeJays.com Number of DJs with 75,000+ fans on Twitter: 250 - TopDeeJays.com Number of DJs with 100,000+ fans on Twitter: 185 - TopDeeJays.com

Electronic Musicians:

Popularity is generally a result of organic growth: viral effect (not pushed onto radio by a major). Interactive fan bases, active on Instagram, Vine, and Facebook. Rarely sell records, except for vinyl.

CANTORA

DILLON FRANCIS: 815K fans on Facebook

535K follower on Twitter 453K followers on Twitter

Electronic producer Dillon Francis dominated our study with engagement rates as high as 25.48%, meaning a full quarter of those that receive his posts are liking, commenting, or sharing. To put this in perspective, the average musician engagement rate in our study, including Dillon Francis, is 3.13%. Francis alone had an average engagement rate 7x higher than the total average of the other nine musicians together.

CANTORA

Similar to Bandpages Experiences, Francis vends special offers on his website:

CANTORA

Alternate Strategies - Powerhouses: Target TOP 40 ARTISTS:

Extremely large fan bases. DMM can be a tool for major labels and management companies. Model could charge more than $200/month (% of each Fan Subscription).

Target Youtube/Disney Stars

Huge Fan Bases characterized by Digital Obsession. Pre-Teen and Teenagers that crave interaction with Online Celebrities.

Fan management is everything to these personas. Their hit count is dictated by their fan engagement. More interaction = more $$$.

Case Study - Jerome Jarr:

http://www.nytimes.com/2015/01/29/style/jerome-jarre-the-making-of-a-vine-celebrity.html

What makes Mr. Jarre so loved by his fans (he likes to call them friends, saying that fans sounds too hierarchical) is that he is relentlessly positive. There is rarely a photo or video of him in which he is not grinning from ear to ear. The messages he espouses sometimes in videos, other times in all caps are meant to inspire kids who have been bullied or are insecure.

Signed a $1Million year long contract with an Advertising Agency in October, 2014.

CANTORA

DMM: Scaling & Strategy Things to consider:

Fee: DMM: $200/month. No Freemium Bandpage: $20/month Freemium FanBridge: $103.99/month 30 Day Free Trial

Music Industry trending towards Direct-2-Fan.

Independent Artists on the rise. Music Fans could spend an additional $2.6 Billion annually for behind-the-scenes access to artists and exclusive content. - Nielsen/SXSW study "Buyer and the Beats:

Artist-Fan interaction via Text Message is an unproven, but fascinating idea.

Fan & Artist Acquisition will be most difficult challenge. Chicken & Egg.

DMM is designed for Fan Management, but fails to account for entrenched social platforms like Facebook, Twitter, Youtube, Soundcloud. Strategy:

Initial target should be medium sized independent artists with dedicated fan base and high online engagement. The Electronic Music Sector should be explored: its foundations are digital, it has a market value of $6.2 billion, and the majority of artists and labels are independent of majors. Triple AAA major artists might not want to use this app personally, but their management teams may.

Consider pivoting app to the market of Disney & Youtube Stars.

Offer a freemium model to increase user acquisition and hit critical mass. DMM could also take a percentage of each subscription.

CANTORA

Youtube Stars Subscriptions:

http://money.cnn.com/2014/10/28/technology/youtube-paid-subscription/

"YouTube right now is ad-supported, which is great because it has enabled us to scale to a billion users; but there's going to be a point where people don't want to see the ads," YouTube CEO Susan Wojcicki said at a conference sponsored by the website ReCode, which posted about her comments.

She called a subscription arrangement "an interesting model" and added that YouTube is "thinking about how to give users options," according to ReCode.

Not very active on Facebook:

Most posts are referrals to videos.

More active on Twitter:

Limited characters allows for more rapid fire engagement.

Victorious:

A startup called Victorious is looking to build mobile apps for digitally-born stars, creating hubs that bring together a creators content from YouTube and social media sites. Founded by former Youtube Excecs, it has already enlisted some big-name YouTube stars, including Michelle Phan (who has 6.6 million subscribers on the video site), Boyce Avenue (5.8 million), and Shay Carl (1.3 million).

Chen said that just creating one form of content is not enough, so as stars post videos to YouTube, photos to Instagram, shorter videos to Vine, and so on, they can bring it all together (and fans can find in all in one place) through Victorious.

Ad Revenue is primary focus of these Youtube Stars.