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The Impact of the Web on the Music Business
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The Leading Digital Distributor
Founded in 1997 Thousands of labels Every music genre Catalogue of more than 1 million tracks Supply the leading legal digital music
retailers and mobile operators throughout the world
Headquartered in New York and London with operations in 22 countries
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Orchard Artists
Afrika BambaataaAlexander Shulgin Anthony BraxtonArchie Shepp Art BrutAsha Bhosle Astor PiazzollaB.B. KingBad BrainsBay City RollersBeckBenny Goodman Bill Laswell Billie HolidayBilly Bob Thornton Bing CrosbyBlack Flag Black UhuruBlazin' SquadBlink-182
Bo DiddleyBob MarleyThe Brand New Heavies Bright EyesC&C Music FactoryCab CallowayCarl PerkinsCecil TaylorCharles MingusCharlie ParkerChris de BurghChuck BerryChuck Loeb ColdplayCount BasieCurtis MayfieldDaniel JohnstonDave BrubeckDead Kennedys
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Orchard Artists
Death Cab for CutieDeep Purple Dinah WashingtonDionDon McLean The Donnas Dr. JohnDuke EllingtonElla FitzgeraldEric DolphyEvan & JaronThe Fall Fats DominoFito Paez Frank SinatraGeorge CarlinGlenn MillerGreen DayGregory Isaacs
Hank WilliamsHarry BelafonteHelmetHerbie Hancock The Hives The Hold Steady Howlin' WolfIke & Tina TurnerImmortal TechniqueThe Jerky Boys Jerry Lee LewisJerry SeinfeldJody WatleyJohn CageJohn Coltrane John Denver John FaheyJohn Lee HookerJohn Legend Johnny Cash Keane
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Orchard Artists
Kim Waters King Sunny Ade The Kingsmen The Last Poets Lata Mangeshkar Laura CantrellLeadbellyLee “Scratch” PerryLewis BlackLightnin’ HopkinsLittle RichardLos LobosLouis ArmstrongMad ProfessorMahalia Jackson Masta KillaMatisyahuMedeski Martin & WoodMelvinsMe'shell N'degeocello
MF DoomMikis TheodorakisMinistryThe Minutemen Mojo NixonMotley Crue MotorheadMuddy WatersNat King ColeNina SimoneNorman CookNusrat Fateh Ali KhanOfra Haza Ohio PlayersOjos de BrujoOl Dirty BastardOperation Ivy Paul Oakenfold Perry Como The Pharcyde
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Orchard Artists
PigfacePilar MontenegroPublic EnemyRalph StanleyRavi ShankarRay CharlesRoger McGuinnRZASam & DaveScreamin’ Jay HawkinsSeu Jorge The Silos Simply RedSir Mix-A-LotThe Skatalites Sly & RobbieSolomon Burke Son HouseSouliveSoundgardenSublime
Sufjan Stevens Sun RaSwing Out Sister Taj MahalTed Leo / PharmacistsTim BuckleyTom WaitsTone-LocTownes Van ZandtTriumphThe Turtles The Vandermark 5Walter Beasley The Wedding Present WeenWilson PickettYellowmanYoung MC Zakir Hussain
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CD’s Are Dead! Finally We All Agree
Europe – 30% decline in sales by 2011US
– Retail Sales = $12.5 billion 2005
– Retail Sales = $10.5 billion 2010
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Digital is the FutureAnd We All Agree On This
2004 – 2005 the market nearly tripled from $400 million to $1.4 billion
Mobile operator 3 sells more than 200k full track downloads a month
Gnarls Barkley reached the top of the singles charts with a digital only release
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What Is Impeding the Business?
Implementing old business models in a new world
Email vs. Mail
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Pricing
99 cents - 79 pence (same cost as physical world)
Even higher cost for mobile“Respect the value of music”
People pay for services
Services pay for music
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Usage Restrictions
ControlCopyingInteroperabilityPortability
Old world business model gives the consumer more freedom!!!
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Customer Service
Paradox of Choice – Consumers demand an abundance of choice
Recommendation
Marketing and Promotion in the old world – Demographics
Marketing and Promotion in the new world – Psychographics
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Ownership
Stop asking the consumer!!!Learned helplessness – When presented
with a better option it is not taken.DVD vs. Video Tape
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The Business Models
P2P – low price and low serviceSubscription – higher price better serviceStreaming – free but no interactivityInteractive streaming – low price with
some functionalityGames, tones, websites, user generated,
etc. – charge, charge, charge!!!Charge based on size of wallet
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When will this happen?
After Majors are sold and new companies exploit their copyrights
When indies find their lost spiritWhen companies start serving their
customersWhen retail stores disappear and there are
no other options
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Contact Info:
Scott CohenFounder and VP [email protected]
The Orchard25 Floral StreetCovent Garden, LondonWC2E 9DSUK
