Produce it yourself : remodeling the music industry

Abstract

In this thesis, I develop a business plan for a music label allowing people to invest in bands and to be paid back when the bands makes some money. The idea is based on a new business model developed by several companies in Europe and particularly MyMajorCompany in France. Bands are promoted on Produce-It-Yourself s website and investors can decide to put their money in the bands they like or believe in. First, I analyzed the market opportunity for the company, targeting people between 18 and 35 belonging to the digital generation. I then explain the idea of Produce-It- Yourself and how this idea could solve the threats the music industry is currently facing, particularly with piracy and illegal downloading. I also develop the marketing and sales strategy of the company, showing how we are going to focus or efforts on digital albums in order to keep our manufacturing costs low and to take advantage of the trend showing a decrease in physical CDs sales and an increase in digital sales. Finally, I made some financial projections to estimate the potential of the venture on a five-year period. The conclusion of the plan shows the composition of the team and of the board of advisors, since the success of the venture will be mainly due to the team and its ability to execute the idea properly.