lean business modeling for apple (itunes) and spotify: who will win the business model war in the...

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Apple (iTunes) vs. Spo1fy Music Industry Business Models The Simplest, Fastest, and Funnest Way to Visualize, Evaluate, and Design Business Model Engines Register at www.visionaryd.com to learn more about the Lean Business Modeling. Lean Startup Coach. Dr. Rod King. [email protected] & h;p://businessmodels.ning.com & h;p://twi;er.com/RodKuhnKing BUSINESS MODEL REVENUE MODEL Lean Business Model (Strip): ROD’s Business NotaIon Job To Get Done (JTGD): Listen to Music Asset (Product) Sale Model Apple (iTunes) Business Model Engine (Luxury Spot Strategy): High Cost & High Quality Monthly Subscrip1on Model (Membership) Spo1fy Business Model Engine (Blue Ocean Strategy): Low Cost & High Quality Ad Payment Model Spo1fy Business Model Engine (Blue Ocean Strategy): Low Cost & High Quality Customer (Payer) Supplier (Enterprise) Songs (Streamed) Monthly Payment for Songs ($4.99; $9.99) Customer (Payer) Supplier (Enterprise) Song (Downloaded) Payment per Song ($0.99) Customer 1 (AdverIser/Payer) Customer 2 (Free user) Supplier (Enterprise) Ad Service Ad Payment Song (Streamed)/ Ads Exposure

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Page 1: Lean Business Modeling for Apple (iTunes) and Spotify: Who will win the business model war in the Music Industry?

Apple  (iTunes)  vs.  Spo1fy  Music  Industry  Business  Models  

 The  Simplest,  Fastest,  and  Funnest  Way  to  Visualize,  Evaluate,  and  Design  Business  Model  Engines  

Register  at  www.visionaryd.com  to  learn  more  about  the  Lean  Business  Modeling.    Lean  Startup  Coach.  Dr.  Rod  King.  [email protected]  &  h;p://businessmodels.ning.com  &  h;p://twi;er.com/RodKuhnKing  

BUSINESS  MODEL    REVENUE  MODEL  

Lean  Business  Model  (Strip):  ROD’s  Business  NotaIon  

Job  To  Get  Done  (JTGD):  Listen  to  Music  

Asset  (Product)  Sale  Model    

         

Apple  (iTunes)  

 Business  Model  Engine  (Luxury  Spot  Strategy):  High  Cost  &  High  Quality  

Monthly  Subscrip1on  Model  (Membership)  

         

Spo1fy    

Business  Model  Engine  (Blue  Ocean  Strategy):  Low  Cost  &  High  Quality  

Ad  Payment  Model  

           

Spo1fy    

Business  Model  Engine  (Blue  Ocean  Strategy):  Low  Cost  &  High  Quality  

Customer  (Payer)  

Supplier  (Enterprise)  

Songs    (Streamed)  

Monthly  Payment  for  Songs  ($4.99;  $9.99)  

Customer  (Payer)  

Supplier  (Enterprise)  

Song    (Downloaded)  

Payment  per  Song  ($0.99)  

Customer  1  (AdverIser/Payer)  

Custom

er  2  

(Free  user)  

Supplier  (Enterprise)  

Ad  Service   Ad  Payment  

Song  (Streamed)/  Ads  

Exposure