際際滷

際際滷Share a Scribd company logo

Live Music Streaming Go-To-Market

MC[CO] Labs
MC[CO] Labs

MC[CO] Labs was hired by a live music company to develop a strategy for launching a live concert streaming channel. MC[CO] conducted research including analyzing historical live music viewership data and a consumer survey. They identified subscription as the optimal business model. MC[CO] created a strategic plan outlining a 3 phase approach over 5 years to scale the channel, and delivered a financial model projecting $45M in potential revenue by year 5. The client gained insights to inform partnership discussions and accelerate their launch.

1 of 9
Download to read offline
MC[CO] LABS Live Concert Streaming Strategy Go-to-market strategy & strategic plan Case Study
Context Our client, a live music company. was looking to drive its growth strategy by partnering with a digital media distributor and launching a live concert streaming channel concept. The company enlisted MC[CO] Labs to size the market opportunity, define its optimal business model, help to bound its content strategy, and deliver a strategic plan to execute on the opportunity. Our assessment's core was developing a proprietary database of live music audience ratings, learning from historical TV performances, current size, type of fan bases, and engagement levels with the artist. A targeted consumer study was launched to gauge the interest in a digital "live concert streaming channel," its content attributes and revenue generation modalities. With MC[CO] help, the client was able to accurately size the opportunity and define a structured strategic plan, including the number and type of live music performances to be streamed with the digital partner, the expected revenue model, and the kind of sponsors that would need to be activated to bring the series to success. 2MC[CO] LABS
Approach 3 Reviewed historical TV ratings and digital streaming performances for live concerts (8 years timeframe, Nielsen, Comscore and other sources) Mapped live TV ratings (online unique viewers) against the size of the artists fan bases. Launched a consumer study (N=1000) to gauge interest levels on concept, content attributes and price sensitivity (conjoint analysis) Demand Analysis (Product/Channel Appeal) Revenue Model & Market Sizing Strategic Plan and Go-To-Market Analyzed and evaluated key business model options: subscription, advertising and sponsorships and on demand (a la carte) Selected optimal business model option based on creative format appeal and consumer viewing behavior and conversion points. Sized the overall live music streaming market and generated revenue forecasts at five years. Created live streaming power index for artist selection (based on size and type of fan base and live ratings.) Prioritized sponsor investments based on historical sponsorships deals and size of the brands digital marketing budgets. Summarized the go-to-market strategy in a cohesive business plan to lead action. 8 weeks Key Strategic Advisory Activities CoreTopicsAddressed A B C MC[CO] LABS
Step 1. Demand Analysis 4 0 1 2 3 4 5 6 Other online Other TV Online Mega Artists TV Mega Artists Online Festival Headliners Must See Event Base Average High Artists fan base analysis Live TV ratings / Audience analysis Consumer Study (N=1000) Creative Format Appeal Index Process Illustrative Output: Format Appeal Comments Live streaming performance benchmarks (unduplicated viewership, N=300) Using a cross-section analysis (TV, digital), we created a proprietary database to evaluate the live music streaming market's state from a viewership perspective. Our proprietary database was then augmented with a targeted consumer study (N=1000) and used to segment the key performance drivers to determine an overall "format appeal" of the proposed live music streaming concept. Our analysis highlighted to the leadership team the aspect of the audience drop off curve and likely conversion from fans to "viewership" and expected engagement levels. Our demand analysis workstream delivered a targeted consumer study (N=1000), and blended it with creation of a proprietary database of ~300 live performances to determine the overall format appeal. MC[CO] LABS Significant drop off curve
Step 2. Business Model & Market Sizing 5 Business Model Options Illustrative Output: Channel Expected Penetration Key Comments Our consumer study (N=1000) delivered the expected interest levels and penetration rates for the service, based on different configurations of content attributes, business model options, and price ranges. We facilitated three business model sessions with management teams from both the content and the distribution side of the business plan. The penetration rates and price sensitivity was then used to project the revenue potential and the market sizing for the opportunity to guide investment levels. Our consumer study also highlighted the key business model options, and the expected penetration rates associated with each strategic option. MC[CO] LABS Three models were considered for deeper level analysis: - Sponsorships & Advertising: assumes the audience is monetized via ad sales and sponsorships. - Subscription: assumes the audience is monetized via a subscription model (monthly or annual fee), with minimal augmentation (less than 15%) through sponsorships. - TVOD/live streaming: assumes the audience is monetized using a pay per view model without monthly subscription to the channel and no advertising. 0% 1% 2% 3% 4% 5% 6% 7% Advertising Subscription Pay per view Straight live streaming Live + add on content Consumer Interest (% of interested respondents scoring 7.5 and above on 10 point scale) Source: MC[CO] Labs Consumer Study (N=1000)
Step 3. Strategic Plan 6 Business Case/ Financial Modeling Illustrative Output: Strategic Roadmap Key Comments Business Case: we created a scenario planning model to forecasts revenues, profits, and cash flow at five years, leading to investment requirements and capital needs to launch. Strategic Plan: we delivered a strategic plan summarizing the critical phases of the business plan, their requirements, and operating targets. Corporate Governance: we offered a preliminary suggestion of organizational structures and corporate Governance between partners for the management of the asset during its existence. A business case and a financial model were developed to bring to life a five years strategic plan, investment strategy and corporate governance structure to manage the nascent joint venture. MC[CO] LABS Revenue Forecasts Operating Model (Cost Structure) Cash Flow Analysis Investment Requirements 0 1 3 6 Key focus Launch Expand Scale Full Potential Ye ar s Beta test the channel on a select 15 artists No behind the scenes/add on content for the first 6 months Launch as ad supported Focus on quality and delivery through co- marketing with top sponsors Expand content features to include behind the scenes and other engagement tools Rely on sponsors to foot production costs Expand artist pipeline to 30 Test subscription models for add on features (super fans) Scale the platform further aiming at 50+ live concerts Add promotional materials, special offerings and special content features to expand subscription model Drive tighter alignment with sponsors and raise sponsorship pricing Size of the prize: $45M estimated potential, ~5M OI target at year 5 The strategic plan: 3 key phases of development to scale the channel to full potential The deliverables package: business case, financial modeling, strategic plan and corporate governance structure
Engagement Recap 7 MC[CO] Role MC[CO] Deliverables Client Results Held key responsibilities over: 1) fact-base creation, 2) primary and secondary market research, 3) commercial valuation, 4) strategic planning and corporate governance Delivered: Live concert viewership fact-base (past 8 years) Strategic selection of optimal business model for launch Artist prioritization (live music power index for streaming) Commercial valuation of the opportunity Strategic Plan (5 years) The client gained a robust understanding of the live music streaming opportunity, revenue potential, and profitability profile. Our strategic plan allowed the leadership team to supercharge their partnership discussion, align JV interests and investment levels, and accelerate the go-to-market activities. Capabilities Utilized Commercial valuation and market sizing, consumer research, strategic planning and financial modeling. MC[CO] LABS
MC[CO] Labs is a boutique strategy consultancy headquartered in Los Angeles. We specialize in growth opportunities, corporate development, and investments at the convergence of media, technology, and consumer marketing. We augment our clients senior leadership as they set a new vision for expansion or transformation, evaluate new growth opportunities and investments, and design the strategic architecture to inform future growth-inspired action plans. We specialize in market assessments, strategic planning, and strategic due diligence. Our work focuses on driving the insights that inform large scale corporate development moves, growth strategies, revenue-generating initiatives, and investments/divestitures (including M&A). We selectively co-invest with our targeted fund, MC7, focusing on a targeted number of attractive investment opportunities, in addition to actively managing a portfolio of TMT-related public equities. MC[CO] LABS
Contact: Mauro Cellore Managing Partner mauro@mccolabs.com MC[CO] LABS www.mccolabs.com

More Related Content

Live Music Streaming Go-To-Market

  • 1. MC[CO] LABS Live Concert Streaming Strategy Go-to-market strategy & strategic plan Case Study
  • 2. Context Our client, a live music company. was looking to drive its growth strategy by partnering with a digital media distributor and launching a live concert streaming channel concept. The company enlisted MC[CO] Labs to size the market opportunity, define its optimal business model, help to bound its content strategy, and deliver a strategic plan to execute on the opportunity. Our assessment's core was developing a proprietary database of live music audience ratings, learning from historical TV performances, current size, type of fan bases, and engagement levels with the artist. A targeted consumer study was launched to gauge the interest in a digital "live concert streaming channel," its content attributes and revenue generation modalities. With MC[CO] help, the client was able to accurately size the opportunity and define a structured strategic plan, including the number and type of live music performances to be streamed with the digital partner, the expected revenue model, and the kind of sponsors that would need to be activated to bring the series to success. 2MC[CO] LABS
  • 3. Approach 3 Reviewed historical TV ratings and digital streaming performances for live concerts (8 years timeframe, Nielsen, Comscore and other sources) Mapped live TV ratings (online unique viewers) against the size of the artists fan bases. Launched a consumer study (N=1000) to gauge interest levels on concept, content attributes and price sensitivity (conjoint analysis) Demand Analysis (Product/Channel Appeal) Revenue Model & Market Sizing Strategic Plan and Go-To-Market Analyzed and evaluated key business model options: subscription, advertising and sponsorships and on demand (a la carte) Selected optimal business model option based on creative format appeal and consumer viewing behavior and conversion points. Sized the overall live music streaming market and generated revenue forecasts at five years. Created live streaming power index for artist selection (based on size and type of fan base and live ratings.) Prioritized sponsor investments based on historical sponsorships deals and size of the brands digital marketing budgets. Summarized the go-to-market strategy in a cohesive business plan to lead action. 8 weeks Key Strategic Advisory Activities CoreTopicsAddressed A B C MC[CO] LABS
  • 4. Step 1. Demand Analysis 4 0 1 2 3 4 5 6 Other online Other TV Online Mega Artists TV Mega Artists Online Festival Headliners Must See Event Base Average High Artists fan base analysis Live TV ratings / Audience analysis Consumer Study (N=1000) Creative Format Appeal Index Process Illustrative Output: Format Appeal Comments Live streaming performance benchmarks (unduplicated viewership, N=300) Using a cross-section analysis (TV, digital), we created a proprietary database to evaluate the live music streaming market's state from a viewership perspective. Our proprietary database was then augmented with a targeted consumer study (N=1000) and used to segment the key performance drivers to determine an overall "format appeal" of the proposed live music streaming concept. Our analysis highlighted to the leadership team the aspect of the audience drop off curve and likely conversion from fans to "viewership" and expected engagement levels. Our demand analysis workstream delivered a targeted consumer study (N=1000), and blended it with creation of a proprietary database of ~300 live performances to determine the overall format appeal. MC[CO] LABS Significant drop off curve
  • 5. Step 2. Business Model & Market Sizing 5 Business Model Options Illustrative Output: Channel Expected Penetration Key Comments Our consumer study (N=1000) delivered the expected interest levels and penetration rates for the service, based on different configurations of content attributes, business model options, and price ranges. We facilitated three business model sessions with management teams from both the content and the distribution side of the business plan. The penetration rates and price sensitivity was then used to project the revenue potential and the market sizing for the opportunity to guide investment levels. Our consumer study also highlighted the key business model options, and the expected penetration rates associated with each strategic option. MC[CO] LABS Three models were considered for deeper level analysis: - Sponsorships & Advertising: assumes the audience is monetized via ad sales and sponsorships. - Subscription: assumes the audience is monetized via a subscription model (monthly or annual fee), with minimal augmentation (less than 15%) through sponsorships. - TVOD/live streaming: assumes the audience is monetized using a pay per view model without monthly subscription to the channel and no advertising. 0% 1% 2% 3% 4% 5% 6% 7% Advertising Subscription Pay per view Straight live streaming Live + add on content Consumer Interest (% of interested respondents scoring 7.5 and above on 10 point scale) Source: MC[CO] Labs Consumer Study (N=1000)
  • 6. Step 3. Strategic Plan 6 Business Case/ Financial Modeling Illustrative Output: Strategic Roadmap Key Comments Business Case: we created a scenario planning model to forecasts revenues, profits, and cash flow at five years, leading to investment requirements and capital needs to launch. Strategic Plan: we delivered a strategic plan summarizing the critical phases of the business plan, their requirements, and operating targets. Corporate Governance: we offered a preliminary suggestion of organizational structures and corporate Governance between partners for the management of the asset during its existence. A business case and a financial model were developed to bring to life a five years strategic plan, investment strategy and corporate governance structure to manage the nascent joint venture. MC[CO] LABS Revenue Forecasts Operating Model (Cost Structure) Cash Flow Analysis Investment Requirements 0 1 3 6 Key focus Launch Expand Scale Full Potential Ye ar s Beta test the channel on a select 15 artists No behind the scenes/add on content for the first 6 months Launch as ad supported Focus on quality and delivery through co- marketing with top sponsors Expand content features to include behind the scenes and other engagement tools Rely on sponsors to foot production costs Expand artist pipeline to 30 Test subscription models for add on features (super fans) Scale the platform further aiming at 50+ live concerts Add promotional materials, special offerings and special content features to expand subscription model Drive tighter alignment with sponsors and raise sponsorship pricing Size of the prize: $45M estimated potential, ~5M OI target at year 5 The strategic plan: 3 key phases of development to scale the channel to full potential The deliverables package: business case, financial modeling, strategic plan and corporate governance structure
  • 7. Engagement Recap 7 MC[CO] Role MC[CO] Deliverables Client Results Held key responsibilities over: 1) fact-base creation, 2) primary and secondary market research, 3) commercial valuation, 4) strategic planning and corporate governance Delivered: Live concert viewership fact-base (past 8 years) Strategic selection of optimal business model for launch Artist prioritization (live music power index for streaming) Commercial valuation of the opportunity Strategic Plan (5 years) The client gained a robust understanding of the live music streaming opportunity, revenue potential, and profitability profile. Our strategic plan allowed the leadership team to supercharge their partnership discussion, align JV interests and investment levels, and accelerate the go-to-market activities. Capabilities Utilized Commercial valuation and market sizing, consumer research, strategic planning and financial modeling. MC[CO] LABS
  • 8. MC[CO] Labs is a boutique strategy consultancy headquartered in Los Angeles. We specialize in growth opportunities, corporate development, and investments at the convergence of media, technology, and consumer marketing. We augment our clients senior leadership as they set a new vision for expansion or transformation, evaluate new growth opportunities and investments, and design the strategic architecture to inform future growth-inspired action plans. We specialize in market assessments, strategic planning, and strategic due diligence. Our work focuses on driving the insights that inform large scale corporate development moves, growth strategies, revenue-generating initiatives, and investments/divestitures (including M&A). We selectively co-invest with our targeted fund, MC7, focusing on a targeted number of attractive investment opportunities, in addition to actively managing a portfolio of TMT-related public equities. MC[CO] LABS