... where visionaries, game changers, and challengers discuss business models
I have came up with a following business model to change the way Sony and other corporations do business related to music, videos and other digital content sales. Here it is in short:
1. Key Partners: content providers, simm card manufacturers, hardware manufacturers, cloud operators, wireless or satellite network operators (of course including Sony itself).
2. Key Activities:
a) manufacture of hardware (players and game consoles). The hardware would not have a CD or DVD player, would not also offer possibility to record. It would have to have networking capability (satellite or wireless).
b) management of content (obtaining of content from artists, studios etc.)
c) storage of content on cloud
d) management of membership through simm card (which would be inserted to device in order to identify a member). Each member would receive a number of cards for his players at home, plus one to carry about. Each player would accept any simm card of any member, making related content playable or accessible everywhere you go.
e) management of networks.
3. Key Resources: all related to above, such as technicians, computers, cloud structure, etc.
4. Value Proposition:
a) revenue stream: through purchase of content access from cloud and through purchase of hardware and simm cards.
b) customers can access and play their cloud content anywhere. No need to save playlists or songs, no need for backup etc. No download, only acces to a content (unlimited or limited in terms of how many times I can access it).
c) artists would provide only one original artwork stored on cloud only - this would no longer be available on CDs or DVDs in stores. Limit on IP infringements.
5. Customer Relationships: through memberships and purchases.
6. Channels: only through enabled devices.
7. Customer Segments: everyone, businesses and individual customers.
8. Cost Structure: network, hardware and content related costs (with overhead).
9. Revenue Streams: through corporate (such as radio stations) and individual customers.
I have devised above connecting obviously 3 businesses: mobile telephones (where customers identify themselves with a card); cloud (where we can access content everywhere) and networks (wireless or satellite, to guarantee best quality and area coverage). This I have done in order to solve issues artists have with IP rights infringements leading to loss of revenues on the side of music companies.
Of course above model offers great marketing possibilities - each member could receive samples of new music adapted to his taste, new content would be available at the same time world-wide, etc.
Please let me know what do you think about this model - where are its weak points?
Thanks and Regards,