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Situation Analysis Issue Denition Environment Analysis Strategy Options & Choice Action Plan
Situation Analysis
Situation Analysis(External)
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
Situation Analysis(External)
Music Industry
10%
(only fewer than 300 of the approximately 3,000 singles released each year made it to the Billboard Singles Top 40)
Entertainment Management : Polyphonic HMI : Mixing Music and Math
Situation Analysis(External)
Record Labels
90%
(The lions share of a record companys 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. )
Entertainment Management : Polyphonic HMI : Mixing Music and Math
Situation Analysis(External)
Producers
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.)
Entertainment Management : Polyphonic HMI : Mixing Music and Math
Situation Analysis(External)
Artists
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.)
Entertainment Management : Polyphonic HMI : Mixing Music and Math
Situation Analysis(Internal)
Polyphonic HMI
Polyphonic HMI was a Subsidiary of Grupo AIA that used A.I and Natural Science to solve business problems. Founded in 2002, It was AIAs rst foray into the entertainment sector Established specically to market Grupo AIAs A.I. tools to the music industry
Situation Analysis(Internal)
Basic Technology
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
Situation Analysis(Internal)
Music Recommendation System
Polyphonic had initially used the technology to develop a music recommendation system The 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 difcult economic situation caused reluctance among retailers and hardware providers
Situation Analysis(Internal)
Hit Song Science
Existence of clusters was evidence for the view that hit songs share certain mathematical patterns. The extent to which new releases t 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 signicance 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.
Situation Analysis(Internal)
Hit Song Science
Wonder Girls - Tell Me A score of 7.00 or above denotes clear mathematical hit potential. A score of 6.75 to 7.00 is a borderline score. This reects a song whose mathematical hit potential could be 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.
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Situation Analysis(Internal)
Hit Song Science
<Hit Song Sciences Success Rates: A Sample>
Artist
Outcast Clay Aiken Santana Feat. Alex Band R.Kelly
Song Title
Hey Ya! This Is The Night Why Dont You & I
Daniel Bedingeld Uncle Kracker Feat. Dobie Gray Brad Paisley Jennifer Hanson
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Issue Denition
Issue Denition
Record Labels
HSS could be helpful in deciding whether to market an album, in selecting which song to release rst, and in testing new artists looking for a record deal
Producers
HSS offered a chance to test songs or album at some stage during the production process and tweak them to maximize their hit potential
Artists
HSS could add value in that it helped them check the hit potential of their songs and thus nd out whether they had a shot at making it in the industry
Entertainment Management : Polyphonic HMI : Mixing Music and Math
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Issue Denition
What was the best target market? What was a suitable marketing plan?
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Environment Analysis
$30,857
2004
2005
2006(E)
2007(E)
2008(E)
2009(E)
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$450
$300
$353
$150
$174
$194
$0
$43
$57 Single Track Downloaded 2005 $22 $16 Album Downloads 2006 15 Mobile Subscriptons
Broadband Lines
60 44.0 34.3 30
45
15
2004
2005
2006E
2007E
2008E
2009E
2010E 16
Album
Off-Line
Singles
On-Line
18
19
Environment Analysis
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Polyphonic HSS ,
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Record Labels
Producers
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23
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Efciency
Reliability
Practicality
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Strategy Choice
Record Labels Online Retailer
Short Term
B2B
+
Producers Unsigned Artists
Long Term
B2C
,
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Action Plan
Track
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Song
Dont Know Why Seven Years Cold Cold Heart Feelin The Same Way Come Away With Me Shoot The Moon Turn Me On Lonestar Ive Got To See You Again Painter Song One Flight Down Nightingale The Long Day Is Over The Nearness Of You Global Album Rating
Reliability
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3% 3% 18% 41% 14% 34% 11% 12% 14% 75% 25% 25%
Price
: + Running Guarantee $ 100,000/year + 1 Album Free Trial 0.1% Running Guarantee
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Promotion
Phase 1
Universal, EMI, Sony BMG, Warner Major Label (B2B) 1 Single Free Trial Service Label HSS Album HSS
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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.
Music 2.0
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 prole of each user's musical taste.device.
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9.8%
13.8% 15.8%
47.5%
230.0 0 2004
2005
2006
2007
2008
2009
2010
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Price
: HSS 10% Fee
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hitsongscience.com Producer
Product
Hit Song Science+ Rating Score , Title
Price
: 10 , Option Premium Package : 10 $ 400 US/UK Package : 10 $ 300
Promotion
Producer Registry DM 1 month free trial
Entertainment Management : Polyphonic HMI : Mixing Music and Math
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Creator HSS
Price
: + Running Guarantee : $10/song 10$ Running Guarantee 1%
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Promotion
Phase 1
songslide.com E-Mail
: , Technology, Label List
HSS Artist
Phase 2
International Talent and Touring Guide DM(Direct Mail) , Press Release
Entertainment Management : Polyphonic HMI : Mixing Music and Math
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Executive Summary
Strategy
Short-Term Strategy : Record Labels and Online Retailers Long-Term Strategy : Independent Producers, Unsigned Artists
Entertainment Management : Polyphonic HMI : Mixing Music and Math
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Thank You
Entertainment Management