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SONYBMG - Leading case 2008

Dec 01, 2014

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Sony BMG was looking to enter the market with a differentiated 
service that was unlike any other competitor offering.
•The approach taken by Mooga was seen as ground breaking and 
market leading
•Mooga is currently connected in Argentina and being connected 
in other four South American countries
•This is the first mobile music portal with intelligence in the 
market.
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Page 1: SONYBMG - Leading case 2008
Page 2: SONYBMG - Leading case 2008
Page 3: SONYBMG - Leading case 2008

Help | Cost | Home

Search

Everybody gets the same

Page 4: SONYBMG - Leading case 2008

• Content providers and Carriers select the “hottest” and latest content to be marketed to consumers.

• The best sellers of each period are profitable, so therefore “safe”.

• Consumers are constantly updated with new content as operators continuously reinvent their portfolios.

• No longer “hottest” = No longer relevant or profitable. 

NEW BeyonceSong

1 yearlater

BeyonceSong

6 Monthslater

BeyonceSong

Static limited offer placement

Page 5: SONYBMG - Leading case 2008
Page 6: SONYBMG - Leading case 2008

•The Pareto Principle: 80/20 rule, traditional pattern of sales concentration. 

•C. Anderson (WiredMagazine‐2004): The Long Tail

• By lowering inventory storage, distribution and search costs, digital markets have the potential to increase the collective share of niche products, creating a longer tail in the distribution of sales. 

• Now there are 2 markets to  attack:– Old Market: Top Sellers.

– New Market: Long Tail.

What percentage of your items are you selling at least once a month?

Page 7: SONYBMG - Leading case 2008

•James Surowiecki (2004): Wisdom of Crowds

•A diverse collection of independently‐deciding individuals is likely to make decisions and predictions better than individuals or even experts.

–Lego: encourages its fanatical customers to design their products.

–InnoCentive.com: Companies pay solvers from $10k to $100k per solution. More than 30 percent of the problems posted on the site have been cracked.

The Many Are Smarter Than the Few

Page 8: SONYBMG - Leading case 2008

Long Tail + Wisdom of crowds

•Amazon: over 25% of Amazon’s book sales come from books not available in brick and mortar stores.

•Rhapsody: 22% of sales are from songs not played on traditional media. 53% of 750k Rhapsody´s songs are streamed at least once a month. 

•Netflix: 20% of DVD rentals are documentaries, B class movies and niche movies.

•Google: Niche advertisers provide Google over 60% of their Ad Words revenues 

Make everything available, help your customer find it and you will increase your sales.

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Dynamic personalized one to one offer

Page 11: SONYBMG - Leading case 2008

• Adaptive subscriber storefronts lead to infinite mobile shelf space and time

• Subscriber analytics and recommendation engines allow the long tail of niche markets to form across the content universe

• Incentive‐based subscriber self‐distribution allows for spread of mobile content and for easier content discovery across users

Spiderman I Clips

Beatles Oldies

Star Wars

2005 Spring Fashion Clip

20,000 80,000 and ongoing

Black Eye Peas Songs

Elvis’s Hits

Spiderman III

FergieSongs

Content Items

Dow

nloa

ds

Page 12: SONYBMG - Leading case 2008

Viral self learning entertainment ecosystem incorporating Artificial Intelligence techniques to understand, track, predict & recommend

content based on individual user tastes, downloads & popular contents.

Page 13: SONYBMG - Leading case 2008
Page 14: SONYBMG - Leading case 2008

• Sony BMG was looking to enter the market with a differentiated service that was unlike any other competitor offering.

• The approach taken by Mooga was seen as ground breaking and market leading.

• Mooga is currently administrating SonyBMG´s portal in Argentina, Chile and being launched in other Latamcountries.

• This is the first mobile music portal administrated by artificial intelligence in the market.

Page 15: SONYBMG - Leading case 2008

• Auto Context– Classification of existing meta‐data/information/classification can be used to automate the process of contextualization. 

The SONYBMG Contextual Framework has been automatically built with our auto­context scripting engine using SonyBMG´s

existing metadata, enabling a rapid deployment.

Song Title Artist Name Presentation Name Genre ISRCGrid 

NumberType Filename

I Want You (Album Version)

Bob DylanI Want You (Album Version) ‐ Bob 

DylanRock AAAA XXXX

partnersCELLENTaudiomp3_32k

partnersnetpeopleaudiomp3_32k/BobDylan_IWantYouAlbum

Version.mp3

Billie Jean (Single Version)

Michael Jackson

Billie Jean (Single Version) ‐ Michael 

JacksonPop BBBB YYYY

partnersCELLENTaudiomp3_32k

partnersCELLENTaudiomp3_32k/MichaelJackson_BillieJeanSin

gleVersion.mp3

Gotta Move Faster (Album Version)

Sean KingstonGotta Move Faster (Album Version) ‐ Sean Kingston

Hip Hop CCCC ZZZZpartnersCELLENTaudiom

p3_32k

partnersCELLENTaudiomp3_32k/SeanKingston_GottaMoveFas

terAlbumVersion.mp3

Best Of You (ALERT TONE)

Foo FightersBest Of You (ALERT 

TONE) ‐ Foo Fighters

Rock DDDD WWWWpartnersCELLENTaudiom

p3_32k

partnersCELLENTaudiomp3_32k/FooFighters_BestOfYouALER

TTONE.mp3

Page 16: SONYBMG - Leading case 2008

• SonyBMG´s portal structure– Top 5 Section

• Premium placed content defined by SonyBMG

• Shows same content to each and every user (SonyBMG´s request). 

• One and only section not being administrated dynamically by Artificial intelligence.

– Artists• Fully dynamic section administrated by AI.

• Presents relevant content according to each user profile.

• All content presented in context.

Mooga allows to mix dynamic and static sections to promote specific content due to marketing needs.

Page 17: SONYBMG - Leading case 2008

• SonyBMG´s portal structure– Context, context, context!

• Content is placed in easily recognised categories.

• Provides with ALL available content related to the category. 

• Takes full advantage of IMPULSE increasing multiple transactions per session.

– Recommendations• Fully dynamic section administrated by AI.

• Presents relevant content according to each user profile.

• All content is presented in context.

In order to find a content, you must know what you are looking for.

Mooga discovers relevant content for each user.

Page 18: SONYBMG - Leading case 2008

• SonyBMG´s portal structure– Search functionality

• Uses a “wisdom of crowds” ranking algorithm. 

• Its the quickest path to access items of interest. 

• Ranking is dynamic and continuously changes as the user activities evolve.

Search results provide a 3 tier view to useful and relevant content as the crowd knows best

what everyone wants!

Page 19: SONYBMG - Leading case 2008

• SonyBMG´s portal structure– Browsing functionality:

• Mooga uses a “Top Down” approach. 

• This is the most effective path for a user to access items of interest. 

• Every list have been structured using intelligence based on entire portal activity of users.

Ease of content access coupled with implicit recommendations powered by Artificial Intelligence

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• Give each customer WHAT THEY WANT, not what you think they 

need:– Static Top5 made 25% of total sales meanwhile the Dinamic Storefront and 

the Recommendation engine (AI) administrated 75%.

– Up to 50% of users who clicked on a recommendation ended making a download.

• CONTEXT IS KING– Almost 20% of users made multiple downloads from same artist.

Hey, I don´t like fish!

Page 22: SONYBMG - Leading case 2008

• Give customers INFINITE CHOICE and they will make infinite choices– 90,7% of the content available was download at 

least once.

– 98,9% of artists got at least one download.

• Help your customers FIND RELEVANT CONTENT– More than 22% of subscribers used the 

recommendation engine.

– 24,3% users made more than one download in a single session.

Page 23: SONYBMG - Leading case 2008

Beyond the tip of the iceberg

Page 24: SONYBMG - Leading case 2008