Saturday, January 20, 2007

Myspace's approach of the value chain



After a long discussion with my binomial & friend Carl Hallard, i would like to share on Myspace approach of the music industry's value chain... (The picture is the myspace page of Fancy an emergent french band)

I remember my school's tutors wondered us : "where do you place So ME (Our platform) on the value chain?" We were not sure, especially because it was a new web 2.0 platforms editor (Business plan 2004). So ME, the first launched platform was an intermediation one for artists and fans (a Myspace like but with a deeper focus on the relation between fans and artists), allowing "experts" (artists) to sell entertainment/cultural products on the site...

Value chain seemed to be the thing we must respect and we used to say "We respect the value chain and bring solutions". It has been designed to bring promotion tools and revenue drivers for artists, diversity and direct contact with artists for fans, tools for Majors (to select the artist with huge potential artists with an objective approach)

I think Myspace's success is mainly due to this. They focus on bringing solutions to most of the value chain actors... If you think Myspace is blog or just "6 degree rule", you're wrong...

We don't need to respect how things goes in the current value chain but we need to bring solutions to actors that are currently involved in. Then when you get most of the market share as Myspace or Apple with the Ipod you can bring your own value chain in a sense.

Myspace has created social links between people around their interests, involving expert as emergent artists, video makers, nights clubs staff... as fans and other consumers (public), they will start to allow them the generate commercial transactions. It's relevant to introduce commercial transactions on a Social Network but it's not easy to generate social links based on commercial transactions.

Yes i know that some people are now engaged after meeting them as sellers and buyers on Ebay... Just crazy but not very representative...

Why will i need to buy music in a store if i can buy it to "my friend" the artist directly on
Myspace?

Today the only reason i could buy music in a store (for myself) is that "my friend" artist told me to, or cause the packaging add a specific value... (I've finally put all my cds' packaging in my cave last week...). I've never buy MP3 files yet but I'm just waiting for Myspace to allow registered artists music sells to do it and I can't wait (yes truly!)
I think Myspace will become the first MP3 paid distribution platform, Apple store is not so relevant for Myspace users...

Myspace could become a strong e-commerce player soon.

Who is going to make the smart move to deploy his CtoC payment solution on Myspace?

. Ebay with Paypal
. Yahoo! / Alibaba with Alipay
. Google with Google checkout

I think it's the most important deal to make this year for Payment solutions to expand market shares. It seems to be Paypal but we don't know really...

Will Myspace and Newscorp turn into e-commerce successfully?
I'm more in love with the e-business than with any company so i hope it they will do it!

5 comments:

Alban said...

Je partage ton analyse: Myspace a réuni ensemble des acteurs qui avant pouvait avoir du mal à se rencontrer avec les moyens traditionnels (envoie de maquette, site web esseulé...): artistes émergents avec un public potentiel, puis avec salles, bars, tourneurs, maisons de disque and co...

Anonymous said...

D'accord avec vous. On peut même aller plus loin et dire que Myspace est un générateur de vocation. Et c'est en celà qu'il y a encore des segments à détacher du modèle Myspace fédérateur, mais aussi généraliste. Les artistes émergents par exemple: Que deviennent-ils noyer dans la masse des artistes connus, signés et déjà médiatisé par ailleurs? Mais encore une fois c'est pas la vocation de MS. D'autres doivent prendre le relai judicieusement...

DF

Gregory Talon said...

Hello, thanks for your comment. you think myspace is generalist?
I don't think so.
You know you can find almost all the emergent artists on myspace and they reach to have huge success on it.

Myspace is more designed for emergent artists than for major ones... Major ones didn't need Myspace before but emergent artists had no solutions to etablish a relation with their potential fans... In this sense myspace brings them solutions on the value chain wich was rejecting them before...

Anonymous said...

Myspace is so Boring...........

I prefer Orkut for it's simplicity and totally no typical web page design....

Orkut's debate forums hold the key....

once you discover them ...you get hooked.

Ady said...

orkut hasn't changed its layout in years. it looks d same... dull n boring. its no longer fun.
d point is dat for pple in countries like india n brazil, whr thr r more orkut users than ne other social networkin site, it can b considered a mere necessity. but if i had a choice, myspace wud b my pick!

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