Business Model Review for global acceptance.Pro:• Restructure the payment of royalty from a fixed 70% to a range 60% – 80% reward system to Artist and record company. This welcome new artist and retain established artist.
• Sales of Artist memorabilia and strengthen advertising content revenue funds as this augment for revenue services the free tier• Deploy Smart technology apps that are user friendly and sensitive• Device a loyalty reward system that provides rebate and incentives for long staying subscribers and extension of discounts to high school studentsCons:• Artist classified in the low range payment may be disgruntled and pull out of relationship• Cut down in operating costEstablishment of global brand and presencePro:• Continue to explore new markets around the world- Africa and Asia have huge middle age population yet to untapped.• Secure collaborative partnership with international artist for tour and concert sponsorship, sales of Memorabilia• Increasing the number of Premium subscriptions by extending discount to a wider age range and attract more globally acceptable adverts serving as a powerful, strong medium for international corporations• Promote diverse numerous music genres and styles to satisfy global audience• Explore partnerships and promotion with other companies as a medium to grow the market and in-road to other countries.• Acquisition and merger of competitors who have local presenceCon:• Internet access and infrastructure in emerging market is at infancy- yet to be developed. • Illegal file-sharing is growing problem in the music industry; weak laws and regulation outside Europe and America do exist.• Break even and profitability may be delayed due weak infrastructure and other social-political issues in the developing countries.
