E-Business - MyMajorCompany, a business model transposable to others

Résumé du document

The web 2.0 is the passage from stock to flow: the information becomes dynamic. Indeed, the interaction between internet-users is at the heart of the web 2.0 applications. The internet users create virtual communities in which the messages written are quickly conveyed, scattered and transformed.

Web 2.0 also changes the musical production. The new label MyMajorCompany.com, created in 2007 by Michael Goldman and Simon Istolainen, is the first French community musical label. He proposes to the Internet-users fascinated by music to become the producers of young artists unknown. The idea is to discover to the Internet users the artists selected by the label for their creativity and to allow them to invest some money on them. When an artist collects 70,000€, the label starts automatically the process of production, distribution and promotion of the album.

Once producers, the Internet-users can follow step by step the evolution their preferred artist, participate in decision-making, contribute to the promotion of the artists and are divided the income of sales. This is a really innovative, original and new concept. Nevertheless, we wonder if this value proposition is sustainable at a long term basis because the novelty can grow tired of it easily and quickly if nothing is constantly done. The thing is that it is really difficult to build a large and loyal community for a company and a brand especially on internet because Internet-users are more young and volatile than on real market.

Extraits

[...] This 2.0 concept is based on three main points for the customer: Producing their favorite artists by creating their free profile and then betting on them. Participating in their launching by taking part in the strategic decisions of their launch. Earning profits at a level of of the incomes generated by sales. The concept of My Major Company permits also to promote faster the songs and the artists that internet users like by sharing this taste not only on the virtual community of the website but also through other famous and more important social networks as Facebook or Twitter. [...]

[...] This firm in this case have to set up some strategic collaboration with other companies already established in these sectors. For example, my major company could set up a joint venture or just a Major” brand franchise with a strong and well established actor, Vente Privée for the clothes or Hachette for the publishing industry CONCLUSIONS We can conclude that this business model based on the active participation of their customers thanks the web 2.0 applications require a constant and innovative management of the brand My Major Company. [...]

[...] My Major Company is one of the main actors of this kind of services supplied to the online artists in France. As the website informs us, it is not only a platform of discovery and of launch. It is about a real virtual label using the participative model.1 Each artist gets a personal page. The virtual record company thus assimilates to the social networks. Besides an effective promotional campaign, the firm also guarantees the choice of the coproduced albums with the Internet users and ones offline. [...]

[...] This is a really innovative, original and new concept. Nevertheless, we wonder if this value proposition is sustainable at a long term basis because the novelty can grow tired of it easily and quickly if nothing is constantly done. The thing is that it is really difficult to build a large and loyal community for a company and a brand especially on internet because Internet-users are more young and volatile than on real market INTRODUCTION Nowadays, we notice that the web 2.0 has obviously a real impact on the communication and the way of selling goods and services thanks to internet. [...]

[...] It is a bilateral work The web 2.0 as a way to reduce the level of risks taken by the company To begin this part, we have to remind that the web 2.0 is the passage from stock to flow: the information becomes dynamic according to Dumont Indeed, the interaction between internet-users is in the heart of the communication The internet users create virtual communities in which the messages written are quickly conveyed, scattered and transformed. The web 2.0 is also the raid of the Internet-user. He can now build up to himself a digital identity, be a member of one or several social networks but also diverse and varied communities. Beyond that, he participates by becoming an actor. Internet users exchange their news and transfer it very quickly through rss technology for example. [...]