ONLINE MUSIC STORE

 

As we all know Indonesian Music Industry really suffers from the high rate of piracy. Not even the government can stop it. This may caused by following:

– It’s easier and cheaper to just download it.

– the price of physical cd/ dvd is quite high.

– people have to buy the whole album instead of the only song they like.

– If you like various artist, you’d still have to buy each cd separately.

 

WHAT IF YOU CAN DOWNLOAD YOUR FAVORITE SONGS SEPARATELY FOR CHEAP?

All you have to do is buy the voucher at the nearest minimart, scratch the back to get the unique code, type it on our download site and you can choose any song you like from our library.

The monetary value of the voucher will be converted into points, and the more points you spent (all user needs to register) the more bonus contents will be available for you.

The artists can also sell their merchandise through us.

Our download service will be available for Android and IOS too.

IF IT’S CHEAP AND EASY ENOUGH, THEN THERE’S NO REASON TO PIRATE IT.

RESPECT YOUR FAVORITE ARTISTS BY GIVING THEM THEIR DUE.

 

This campaign will create a copyright awareness, and boost the sale of the song (and also the artist’s income). The database gathered can be used for many things.

 

This might be hard to do with foreign artist, but will solve the local artist’s problem. All they need to do is sign the contract, pay the hosting fee and focus on their promotion while the system do the work (we can also handle the promo, of course)

 

PROS AND CONS

 

PROS

– We’ll automatically gain the support from the government, the artists and public

– This will create a very good image for the company

– We can expand the business into many things, such as:

* music chart

* ticketing

* event promotor

* affect tv programme’s rating

* production house

*etc

 

CONS

– This might harm the retail store business and cd/ dvd industry. And kill indie retailer.

– This might cripple the major labels since artists will prefer to self produce and put their song into our system. But then again, their system is obsolete but they choose to stay in comfort zone.

 

WHAT’S NEEDED FOR THIS TO HAPPEN :

– Support from the Ministry (Kemenkum dan HAKI)

– Big ass capital for the infrastructure:

* Megaserver to store the music collection (has to be secure too)

* Secure billing system

* Voucher production

* MASSIVE CAMPAIGN (CREATIVELY EXECUTED)

* Outlet to carry our voucher/ or use existing voucher services

 

 

OF COURSE THERE’S ALWAYS PEOPLE WHO WILL STILL COPY/ PIRATE IT, BUT WITH OUR CAMPAIGN SUPPORTED BY THE GOVERNMENT, WE’LL BE ABLE TO BREAK THE

VICIOUS CIRCLE (AND REAP THE REWARD FOR BEING THE FIRST TO IMPLEMENT THE SYSTEM) AND MORE PEOPLE WILL JOIN OUR CAUSE.

 

this might sounds like a ripoff of iTunes store, but our system will be supported by the government and the local music industry, and can reach the market that was previously untapped by iTunes (those without credit cards).

 

SOURCE OF REVENUE

Primary:

– voucher sales

– hosting fee (we’ll provide various service and capacity for a wide price range)

– fee from every song downloaded

– SPONSORS (advertisement)

 

Secondary:

– first dib on anything the artist produced

– priority to book the artist for every event that we organize

– we can control the market with our music chart .

– offer to produce the videoclip with our inhouse production house

 

THE ERA OF PHYSICAL RECORD IS ALMOST OVER, SO WE MIGHT AS WELL BE THE FIRST TO TAP THE POTENTIAL OF DOWNLOADABLE CONTENT.

 

… and the voucher can be the next big thing… e. q replacing flower and chocolate on Valentine Day, or be personalized as wedding souvenir.

Any artist/ group can pay to have their face on the voucher as part of their marketing strategy (the price depends on the voucher quantity and distribution area), thus making it a collectible item.

 

– for any potential new song, we could ask the artist to be the only download source one week after the official release (cos they’ll have a

chance to break the prestigious ‘most downloaded song of the year’)

 

ADDITIONAL NOTES:

– find the people to handle the IT infrastructure

– req : server engineer, UI engineer, Cosmetic dan maintenance, security system

– co operation with the bank for the voucher and billing, payment gateway.

– drawback : we cannot protect the file, but so is everything on the internet since there’ s no way to prevent file sharing.

IF IT’S FAST AND EASY ENOUGH, WHY BOTHER PIRATE IT?

– concerning file sharing, at least one person (the pirate) still have to buy it. And with proper campaign, hopefully our target market will switch to our service.

– concerning the physical store, if we don’t do it then the piracy will kill them anyway.

– kue pasar industri musik di indonesia akan terbagi lagi dgn adanya online store, but it’s better than nobody gets a thing (while bootleggers thrive).

 

SWOTh ANALYSIS

 

STRENGTHS

We can bring Indonesian Music Industry under one umbrella to fight piracy with Government’s support, and raise the Copyrights Awareness.

 

WEAKNESSES

The concept is relatively new, and need a massive campaign to educate the public

 

OPPORTUNITY

By being the first to implement this concept will give us a headstart in development sense, and if we’re good enough, then there won’t be the need for other competitor anytime soon.

This also give us enough time to claim a big portion of market share.

 

THREAT

Once proven successful, many will follow since it’s not that hard in term of technology.

 

THIS, COMBINED WITH THE INDIE MUSIC, WILL CREATE A RIPPLE EFFECT IN OUR LOCAL MUSIC INDUSTRY.

 

***

 

 

 

 

***

 

OTHER STRATEGY

 

  1. By using voucher, it can be a hardsell marketing.

Let’s say we give away 1.000 voucher @Rp.5000 for free. At least 50% will go to our site and register. Just by that, we’ll get the database of 500 subscribers (name, age, location, occupation and music preference). And with only Rp.5000 worth of credits (which might only enough to buy 1 song), they will discover how vast our music collection is.

This will trigger them to buy more credits.

 

Meanwhile, our cost will be minimum to the voucher manufacture, distribution cost and the royalty which we’ll have to pay to the artist (whose songs got downloaded). The value of the voucher itself is free, since it’s only data (not real money).

 

  1. Weekly podcast showcasing new and upcoming artists on youtube.

This could be done very cheap, with only small crew in a small studio. The commercial value might be small, but if we do this regularly, it will generate loyal followers who will become a potential buyer at our OMS.

*****

NOTE : Ini ditulis tahun 2013, mungkin ada bbrp point yg obsolete tapi ada bbrp point yg valid dan masih bias dijalankan.

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