Survey of Music Business !

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!John Pisciotta Survey of Music Business MBU 1110.18

!MIKE CURB COLLEGE OF ENTERTAINMENT AND MUSIC BUSINESS

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Myth # 1: !

“You are on either the “music side” or, on the “business side”

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The truth is: as a professional, you are in “the music business”

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There is no “music only” side of the business. You might be more musical than somebody else,

but you are in the music business.

The Entertainment Ecosystem

Matrix

Entertainment Ecosystem

Technicians

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Scaleable Innovations

Enthusiasts!

Asset Collectors

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Enthusiasts

Asset Collectors

Enthusiasts• Fan Boys or Hobbyists

• Bleeding Edge Gadgets

• Rarely Build Value

• Rarely Execute

Technicians

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Enthusiasts

Asset Collectors

Technicians• Focused Knowledge Workers

• Producers, Publicists, Writers, Technologists, Lawyers

• Hired Guns-Work For Hire

• Often lead a service based business

• Low Risk-Many Competitors

• Usually Create/Don't Own

• Often own a “job” paid per hour/project

Technicians

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Enthusiasts

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Asset Collectors

Asset Collectors• Labels, Publishers

• Hit Driven Model

• Monetizes by building a critical mass

• Own or Aggregate/Usually Don't Create

• Lead the previous Era

Technicians !

Scaleable Innovations

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Enthusiasts

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Asset Collectors

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• Global Reach

• Team>Talent

• Team Small-User Base Huge

• Focused on a big problem/disruption/innovation

• Build Accretive Value

• Potential Liquidity Event

Scalable Innovations 

Technicians !

Scaleable Innovations

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Enthusiasts

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Asset Collectors

Enthusiasts TechniciansAsset

Collectors!Scaleable!

Innovations!

Tell Fanboy

-you get paid by the project

!-you can't stop working, you only get paid

when you work

you're collecting a

critical mass of content that grows more

valuable overtime

scalable company is one that hundreds and thousands of people can use it at the same time

Enthusiasts Technicians Asset Collectors!

Scaleable!Innovations!

Competition  Many Many Few Few

Vision  None Little Important Very Important

Startup cost None Very Little Substantial Substantial

Barrier to entry ! None None Low Low/Considerable

Time to market  Quick Quick Slow Quick/Slow

Value Low Low significant significant

Risk / Reward Low/Low Low/Med Med/High High/High

Team None Not important important super important

Liquidity event NA NA Potential Potential

Complexity Not Complex Not Complex Somewhat Complex Complex

Innovation Not Needed Helpful Helpful Vital

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Survey of Music Business !

!John Pisciotta Survey of Music Business MBU 1110.18

!

!MIKE CURB COLLEGE OF ENTERTAINMENT AND MUSIC BUSINESS

!@johnpisciotta http://www.loud-lab.com http://musicsynk.com