creative capital presentation
DESCRIPTION
Jeremy Silver's Presentation at Creative CapitalTRANSCRIPT
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digital modes - a few choices for the music entrepreneur
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Creative industries segment analysis
Manual
Physical
Digital
CraftsArt &
antiques
Architecture
Design & designer fashion
Publishing (incl. e-
publishing)
Music (incl. live
music)
Radio & TV
Film
Computer games
Artefact
MediaService
Creative process
Output
Performing arts
Technology-aided
Social media
Advertising (incl. display & search)
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2008 global music sales
recorded music sales $18.42bn (-8% yoy)
recorded music sales in 2000 $30.81bn
cd sales down 15% to $13.83 billion
digital sales up 24% to $3.78 billion
(source ifpi)
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EMI EBIDTA March 09 - £163m (up 219.6%)
Digital 21% (up 6.25%)
Warner 2008 Net loss $68m ($37m) Digital 26% (up 6%)
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LiveNation $102.7m Q1 09 loss ($37.2m) Q1 Revenue $499.3m – 6% down Concert attendance
US fell 23% International rose by 17% Revenue per fan climbed 6% to $66.50
Number of live sponsors dropped 42% but total sponsor revenue climbed 17% to $21m
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ITV Loss before tax of £2,732m (2007: £188m) Ad revenue £1,425 (2007: £1,489) £64m Total TV ad market decline in 2008: 4.8% H1 decline 0.6% BUT H2 decline 8.8%
$55.3m Q1 09 loss ($244.3m full year 08) Radio revenue fell by 24% Outdoor by 29%
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Nendo 08 results £1.8bn profit on £12.2bn revenue – up 8.5%
Shipped 25.9m Wiis and 31.1m DS
Runescape 1 million subscribers – 3 languages
profit in 2006 - £15m
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Q1 09 revenue: $5.51 (6% up on Q1 08)
’08 total revenue: $21.79bn ’08 net income: $4.22bn
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Share of advertising spend by media
Source: ofcom, 2008
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Internet adspend per capita
Source: ofcom, 2007
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UK physical digital music market
source: OECD, 2006
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uk and eu government
eu copyright directivecreative economy digital britain
copyright in 21st centurytechnology strategy board
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consumers
don’t care about companiesunderstand brands
are fickle and variedget most music for free
will pay for great experienceswant to get involved and interactare more sophisticated than the
technology
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entrepreneurs
persuade consumers to change behaviour
save time and moneyentertain and compelbe completely new
use technology in smart waysdo simple things really well
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the player’s choice
play by the bookfly in face of the law
muddle on through
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venture-backed start-upsare major labels’ revenue stream
new technologies don’t necessarily
equal new revenue streams
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areas of focus
a&rubiquitous platforms
recommendation & discoveryremixing and mashupsexploit meta-data
monetise p2pcharge for access
resolve rights licensingmake smart tech choices
apply music models to other media
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digital proverb
When music like sperm swims freely
among every body on digital network
many data babies are worth collecting
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