polyphonic hmi case presentation

48
Polyphonic HMI : Mixing Music and Math Entertainment Management

Upload: utpal-biyani

Post on 13-Apr-2015

513 views

Category:

Documents


26 download

DESCRIPTION

Polyphonic HMI Case Presentation

TRANSCRIPT

Page 1: Polyphonic HMI Case Presentation

Polyphonic HMI : Mixing Music and Math

Entertainment Management

Page 2: Polyphonic HMI Case Presentation

Action Plan

Situation AnalysisIssue Definition

Environment AnalysisStrategy Options & Choice

Page 3: Polyphonic HMI Case Presentation

Situation Analysis

Page 4: Polyphonic HMI Case Presentation

Situation Analysis(External)

Entertainment Management : Polyphonic HMI : Mixing Music and Math 1

So few songs actually become hits - Las Vegas gives you better odds than the Music Industry! You might as well just put a million dollars on red and spin the wheel...

- Ric Wake, Independent Music Producer

Page 5: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 2

10%(only fewer than 300 of the approximately 3,000 singles released each year made it to the Billboard Singles Top 40)

Music Industry

Situation Analysis(External)

Page 6: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 3

90%(The lion’s share of a record company’s revenue was generated through its established artists - not new artists.

For Warner Music Group established artists accounted for almost 90% of the 1.7 billion in revenues from newly released title in 2003. )

Situation Analysis(External) Record Labels

Page 7: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 4

20 to 30(There were only 20 to 30 top producers who were responsible for the majority of successes,

a large group of a few hundred producers who had a hit once in a while, and thousands of people trying to establish themselves as producer.)

Situation Analysis(External) Producers

Page 8: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 5

10,000(There were about 10,000 artists with a record contract in the U.S. and Europe,but only several hundred with some name recognition and commercial success.

Tens of thousands of artists were hoping to secure such a contract.)

Situation Analysis(External) Artists

Page 9: Polyphonic HMI Case Presentation

Situation Analysis(Internal)

Entertainment Management : Polyphonic HMI : Mixing Music and Math 6

Polyphonic HMI was a Subsidiary of Grupo AIA that used A.I and Natural Science to solve business problems.

Founded in 2002, It was AIA’s first foray into the entertainment sector

Established specifically to market Grupo AIA’s A.I. tools to the music industry

Polyphonic HMI

Page 10: Polyphonic HMI Case Presentation

Situation Analysis(Internal)

Entertainment Management : Polyphonic HMI : Mixing Music and Math 7

An Extensive analysis of millions of songs.This covered nearly all music released by music labels since the 1950s

And the Database was updated weekly with new releases

The process considered over 25 characteristics in total( including Melody, Harmony, Tempo, Pitch, Octave, Beat, Rhythm, Fullness of Sound, Brilliance, and Chord Progression)

Based on its Mathematical characteristics, each song was mapped onto “Music Universe”Songs with Mathematical similarities are positioned very close to one another

Basic Technology

Page 11: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 8

Situation Analysis(Internal)

Polyphonic had initially used the technology to develop a music recommendation systemThe idea was to develop a device placed in music stores, thereby helping retailers to increase sales

Asked what music a consumer liked, matched that to Universe of Music, and used that information to recommend other music.

The difficult economic situation caused reluctance among retailers and hardware providers

Music Recommendation System

Page 12: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 9

Situation Analysis(Internal)

Existence of clusters was evidence for the view that hit songs share certain mathematical patterns.

The extent to which new releases “fit” those clusters should indicate their hit potential.

The Clustering technique allowed Polyphonic to provide insights into the coherence of an album and a list of songs with similar mathematical properties.

By giving higher weights to songs in the Universe with higher sales levels, HSS could better pinpoint the significance of a cluster.By focusing on more recent successes among the songs in the Universe, HSS could incorporate the extent to which tastes might change over time.

Hit Song Science

Page 13: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 10

Situation Analysis(Internal)

A score of 7.00 or abovedenotes clear mathematical hit potential.

A score of 6.75 to 7.00 is a borderline score. This reflects a song whose mathematical hit potential couldbe strong enough to perform in the market but might require a little extra marketing thought and push.

Other scores probably mean your material does not have the optimal mathematical patterns that will assure performance in the market.

Wonder Girls - Tell Me

Hit Song Science

Page 14: Polyphonic HMI Case Presentation

Entertainment Management : Polyphonic HMI : Mixing Music and Math 11

Situation Analysis(Internal) Hit Song Science

Artist Song TitleHSS

Rating> 7.00

Weeks in the Singles

Top 40

HighestChart

Position

Outcast Hey Ya! Yes 29 1

Clay Aiken This Is The Night Yes 6 1

Santana Feat. Alex Band

Why Don’t You & I Yes 28 6

R.Kelly Step In The Name of Love Yes 22 9

Monica So Gone No 13 9

t.A.t.U. All The Things She Said Yes 26 12

Daniel Bedingfield If You’re Not The One Yes 15 12

Uncle KrackerFeat. Dobie Gray

Drift Away Yes 17 13

Brad Paisley I Wish You’d Stay No 0 -

Jennifer Hanson Beautiful Goodbye No 0 -

<Hit Song Science’s Success Rates: A Sample>

Hit Song Science can achieve a success rate of 80%

Page 15: Polyphonic HMI Case Presentation

Issue Definition

Page 16: Polyphonic HMI Case Presentation

Issue Definition

Entertainment Management : Polyphonic HMI : Mixing Music and Math 12

Record Labels

Producers

Artists

HSS could be helpful in deciding whether to market an album, in selecting which song to release first, and in testing new artists looking for a record deal

HSS offered a chance to test songs or album at some stage during the production process and “tweak” them to maximize their hit potential

HSS could add value in that it helped them check the hit potential of their songs and thus find out whether they had a shot at making it in the industry

Page 17: Polyphonic HMI Case Presentation

Issue Definition

Entertainment Management : Polyphonic HMI : Mixing Music and Math 13

What was the best target market?

What was a suitable marketing plan?

Page 18: Polyphonic HMI Case Presentation

Environment Analysis

Page 19: Polyphonic HMI Case Presentation

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 14

$10,000

$20,000

$30,000

$40,000

2004 2005 2006(E) 2007(E) 2008(E) 2009(E)

$4,180$6,810

$10,480

$15,320

$20,440

$25,480

$33,573 $32,915 $32,463 $31,933 $31,437 $30,857

세계 음악시장 규모(in millions)

세계음반시장 세계디지털음악시장

Music Industry Analysis(1)

Page 20: Polyphonic HMI Case Presentation

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 15

Music Industry Analysis(2)

$0

$150

$300

$450

$600

Broadband Lines Single Track Downloaded Album Downloads Mobile Subscriptons

$194

$22

$582

$57

$174

$16

$353

$43

U.S. Digital Music Market(in Millions)

2005 2006

Page 21: Polyphonic HMI Case Presentation

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 16

15

30

45

60

75

90

2004 2005 2006E 2007E 2008E 2009E 2010E

34.3

44.0

59.863.3

72.0

78.7

85.0

Digital Music Device Shipment (in Millions), 2004-2010E

Music Industry Analysis(3)

Page 22: Polyphonic HMI Case Presentation

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 17

Music Industry Analysis(4)

Portable Player

Music On Mobile

Free DRM

Digital Music Driver

Page 23: Polyphonic HMI Case Presentation

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 18

높은진입장벽

Album Off-Line 음반

다양성 Singles On-Line 음원

A & R Labels Retailers Consumer

Value Chain

Page 24: Polyphonic HMI Case Presentation

방대한 데이터 분석 및 주간 업데이트

시간 및 비용의 효율성

수치화된 정보를 통한 신뢰성

음악 외적 요소에 대한 분석 부족

낮은 산업내 인지도

Creative에 수학적 접근으로 인한 거부감

예산의 한계로 인한 마케팅 제한

전통적인 방식의 낮은 성공률

확실한 Needs의 존재

Customize된 Contents에 대한 욕구

음악 시장의 변화에 의한 활용도 증가

음악 소비 형태의 변화

온라인을 통한 정보 획득이 쉬워짐

예술성 vs. 상업성

WS

O T

방대한 데이터 분석 및 주간 업데이트

시간 및 비용의 효율성

수치화된 정보를 통한 신뢰성

음악 외적 요소에 대한 분석 부족

낮은 산업내 인지도

Creative에 수학적 접근으로 인한 거부감

예산의 한계로 인한 마케팅 제한

전통적인 방식의 낮은 성공률

확실한 Needs의 존재

Customize된 Contents에 대한 욕구

음악 시장의 변화에 의한 활용도 증가

음악 소비 형태의 변화

온라인을 통한 정보 획득이 쉬워짐

예술성 vs. 상업성

WS

O T

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 19

SWOT Analysis

Page 25: Polyphonic HMI Case Presentation

Environment Analysis

Entertainment Management : Polyphonic HMI : Mixing Music and Math 20

시간 및 비용에 대한 비교 우위

성공에 대한 신뢰성 및 인지도 낮음

시장의 변화에 의해 실용성 증가

Page 26: Polyphonic HMI Case Presentation

Strategy Options & Choice

Page 27: Polyphonic HMI Case Presentation

Strategy Options

Entertainment Management : Polyphonic HMI : Mixing Music and Math 21

Strategy Goal

변화하는 음악 시장에서 Polyphonic의 HSS 기술을

효율적으로 포지셔닝 하고, 이를 통한 수익의 극대화

Page 28: Polyphonic HMI Case Presentation

Online Retailer

Strategy Options

Entertainment Management : Polyphonic HMI : Mixing Music and Math 22

Record Labels Unsigned ArtistsProducers

Segmentation

Page 29: Polyphonic HMI Case Presentation

Strategy Options

Entertainment Management : Polyphonic HMI : Mixing Music and Math 23

한정된 시장 but 성장 가능성 높음 음악시장의 변화 속에 Blue Ocean 마케팅 범위가 적음, 적합한 형태로의 기술 개발의 필요성, 단기적 수익 확보(B2B)

Online Retailer

한정된 시장 but 잠재수요 존재(신인가수) 기존의 Research Tool에 비해 저렴한 비용 마케팅 범위가 적음, 기존 기술 적용 가능, 단기적 수익 확보(B2B)

Record Labels

Targeting

시장 규모가 큼, 잠재 고객 풍부 Creative 영역에 대한 자부심, 틈새 시장 공략 가능 마케팅 범위가 넓음, 기술적 실용도가 떨어짐, 단기적 수익 창출이 어려움(B2C)

Unsigned Artists

확실한 수요층, 성장 가능성 높음 Major Label 보다 높은 Risk, 불확실성 넓은 마케팅 범위, 단기적 수익 창출이 어려움(B2C)

Producers

Page 30: Polyphonic HMI Case Presentation

Strategy Options

Entertainment Management : Polyphonic HMI : Mixing Music and Math 23

시장 규모가 큼, 잠재 고객 풍부 Creative 영역에 대한 자부심, 틈새 시장 공략 가능 마케팅 범위가 넓음, 기술적 실용도가 떨어짐, 단기적 수익 창출이 어려움(B2C)

Unsigned Artists

확실한 수요층, 성장 가능성 높음 Major Label 보다 높은 Risk, 불확실성 넓은 마케팅 범위, 단기적 수익 창출이 어려움(B2C)

Producers

Targeting

Page 31: Polyphonic HMI Case Presentation

Strategy Options

Entertainment Management : Polyphonic HMI : Mixing Music and Math 24

Positioning

Efficiency

Reliability Practicality

Page 32: Polyphonic HMI Case Presentation

Strategy Choice

Entertainment Management : Polyphonic HMI : Mixing Music and Math 25

Record Labels Online Retailer

B2B

Unsigned ArtistsProducers

B2C

안정된 수익 + 인지도 확보

사업 다각화, 지속가능한 수익 모델 개발

ShortTerm

LongTerm

Page 33: Polyphonic HMI Case Presentation

Action Plan

Page 34: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 26

Short-Term Strategy Target 1 - Record Labels(1)

Track SongHSS

Rating

1 Don’t Know Why 7.21

2 Seven Years 4.55

3 Cold Cold Heart 3.31

4 Feelin’ The Same Way 7.29

5 Come Away With Me 6.57

6 Shoot The Moon 7.15

7 Turn Me On 7.32

8 Lonestar 7.26

9 I’ve Got To See You Again 7.59

10 Painter Song 7.12

11 One Flight Down 6.13

12 Nightingale 6.82

13 The Long Day Is Over 6.29

14 The Nearness Of You 7.03

Global Album Rating 6.68

기존 성공 사례를 바탕으로한 Reliability 향상을 위한 노력 부족

Page 35: Polyphonic HMI Case Presentation

75%

25%

Major Record Companies’ Share of Music Sales, 2002

25%

14%

11% 12%

14%

25%

34%

41%

Region’s Share of Music Sales, 2002

3%3%

18%

34%

41%

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 27

North America EuropeAsia Latin AmericaOthers

Universal SonyEMI BMGWarner Independent

Short-Term Strategy Target 1 - Record Labels(2)

Page 36: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 28

Short-Term Strategy Target 1 - Record Labels(3)

Product & Price

미국과 유럽의 Major Label을 대상으로한 Music Analysis Service

➡ 안정적 수익 확보 및 인지도 재고

Product: Music Analysis Service(HSS + Expertise Analysis)

Price: 년간 계약 + Running Guarantee

계약금 $ 100,000/year + 1 Album Free Trial 순수익의 0.1% Running Guarantee

Page 37: Polyphonic HMI Case Presentation

Phase 1 Universal, EMI, Sony BMG, Warner 등 Major Label과의 직접 협상(B2B) “1 Single Free Trial”을 통해 Service 체험 후 계약 계약된 Label에서 HSS를 통해 분석된 Album출시 시에는 HSS 마크 부착

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 29

Short-Term Strategy Target 1 - Record Labels(4)

Promotion

Phase 2 A&R Registry를 통한 Minor Label에 DM(Direct Mail) 발송: 지금까지의 성과와 Technology 안내, 계약된 Label List Billboard와 같은 음악잡지 광고, 지속적인 성과에 대한 Press Release

HSS에 대한 Reliability와 Efficiency 이미지 구축

Major Label => Independent Label로 확장

Page 38: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 30

Short-Term Strategy Target 2 - Online Retailer(1)

Music 2.0

Pandora is an automated music recommendation and Internet radio service created by The Music Genome Project.

Users enter a song or artist that they enjoy, and the service responds by playing selections that are musically similar.

Users provide feedback on the individual song choices — approval or disapproval — which Pandora takes into account for future selections.

Last.fm is a UK-based internet radio and music community website. Using a unique music recommendation system known as

"Audioscrobbler", Last.fm builds a detailed profile of each user's musical taste.device.

Page 39: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 31

Short-Term Strategy Target 2 - Online Retailer(2)

0

500

1,000

1,500

2,000

2004 2005 2006 2007 2008 2009 2010

230.0

555.5

820.7

1,061.9

1,249.6

1,429.71,502.6

Download Songs through iTunes Store(in Millions)

47.5%

6.6%6.7%9.8%

13.8%

15.8%

Wal-Mart Best BuyiTunes AmazonTarget Others

Share of Total Music Sales in U.S.

Page 40: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 32

Short-Term Strategy Target 2 - Online Retailer(3)

iTunes Store와의 제휴를 통한 Online Music Recommendation System

➡ 기존 iTunes 사용자들의 선호도 조사(다운로드 기록)

➡ Cluster Searching(유사 집군 검색)

Page 41: Polyphonic HMI Case Presentation

Product iTunes Store 다운로드 Ranking에 HSS Rating Score 포함 iTunes Store에 HSS Rating Score Ranking 개발 iTunes Player에 HSS 메뉴 추가: HSS 기반 Cluster Searching

iTunes Player에 실시간 추천 기능 추가

Price : HSS 검색 및 추천 기능을 통한 다운로드시 곡당 10% Fee

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 33

Short-Term Strategy Target 2 - Online Retailer(4)

Product & Price

Page 42: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 34

Long-Term Strategy Target 3 - Independent Producers

hitsongscience.com 을 통한 Producer 대상 서비스

Product Hit Song Science+ 단순 Rating Score산출 방식을 지역별 세분화 타겟 시장에 대한 적합성 판단 앨범의 조합, Title곡 추천

Price: 10곡 기준 앨범단위, Option에 따른 가격 차별화

Premium Package : 10곡 기준 $ 400 US/UK Package : 10곡 기준 $ 300

Promotion Producer Registry 를 이용한 DM 발송 최초 가입 후 “1 month free trial”을 통한 체험 기회 제공

Page 43: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 35

Long-Term Strategy Target 4 - Unsigned Artists(1)

The SongSlide Web site is a tool for Independent Artists to sell their music to their Fans. SongSlide lets you pick the price you pay for Independent Music. The more you pay, the more you support the Artist.

Step 1 Artists Upload Music Step 2 Fans Find Songs or Albums They Want to Buy Step 3 Fans Pick the Price Step 4 Fans Pay with Credit Card or PayPal and Download Music Step 5 Artists Gets Paid

Page 44: Polyphonic HMI Case Presentation

Creator로써 HSS에 대한 심리적 장벽 존재

➡ 우회적 공략

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 36

Long-Term Strategy Target 4 - Unsigned Artists(2)

Product Hit Song Science : “songslide.com”의 회원 대상 자신의 곡에 HSS Rating Score 표시: 곡 판매 및 Label, Producer 와의 계약에 있어 판단 기준으로 사용 가능 “songslide.com”에 HSS rating Score Ranking 개제

Price: 곡당 과금방식 + Running Guarantee 곡당 과금: $10/song 10$ 이상 수익 발생시 Running Guarantee 1%

Product & Price

Page 45: Polyphonic HMI Case Presentation

Action Plan

Entertainment Management : Polyphonic HMI : Mixing Music and Math 37

Long-Term Strategy Target 4 - Unsigned Artists(3)

Phase 1 “songslide.com” 회원 E-Mail 광고: 성과, Technology, 계약된 Label List

“1 Month Free Trial”을 통해 Service 체험 Hit Song Contest: songslide HSS Score Ranking Contest 우수 곡 선정 정식 앨범 발매

Promotion

Phase 2 International Talent and Touring Guide를 통한 DM(Direct Mail) 발송 음악 잡지 광고, Press Release

HSS에 대한 Artist의 부정적 인식 전환

잠재 고객의 확대

Page 46: Polyphonic HMI Case Presentation

Executive Summary

Page 47: Polyphonic HMI Case Presentation

Executive Summary

Entertainment Management : Polyphonic HMI : Mixing Music and Math 38

What is the best target market?

What was a suitable marketing plan?

Hit Song Science

효율성의 인식 신뢰성과 인지도 향상 실용성 증가

Digital Music Environment

Short-Term Strategy

: Record Labels and Online Retailers

Long-Term Strategy

: Independent Producers, Unsigned Artists

Strategy

Page 48: Polyphonic HMI Case Presentation

Entertainment Management

Thank You