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Page 1: SONYBMG - Leading case 2008
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Everybody gets the same

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• 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

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•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?

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•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

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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

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• 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

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

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

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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 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.

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• 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

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• 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.

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• 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.

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• 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!

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• 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!

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• 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.

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Beyond the tip of the iceberg

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