The music industry has been under siege – new electronic distribution methods, piracy and the increasing power of the blockbuster performers has made the traditional music labels less and less appealing.
The Pop Idol / American Idol model has harnessed technology for opportunity. The innovative format has been highly successful – singers audition and then perform in a weekly program and viewers then vote for their favourite performer. The winner is awarded a music deal. Amazingly it turns the A&R (Artists and Repertoire) talent finding cost into a revenue source as viewers pay to tell the program owners who they like (often by SMS). In addition, this whole process de-risks taking talent to market (because viewers have already made clear who they like) and enables the talent to be acquired at low cost (because they agree terms in advance).
- turning costs into revenue sources
- harnessing the wisdom of the crowd to help you prioritise your options