Description
A service of recommendations of music events and places, based on user preferences. A recommendation system that facilitates the search and decision-making.
A regularly updated list of events and places with photos, playlists, comments and reviews. Potential users of the service are people of all ages, that attend concerts and parties, and love to travel.
Revenue: Payment for additional features, advertising opportunities and a commission from selling tickets.
Comparison
Last.fm is an online music radio, that picks music according to user tastes. Models of Clubture and last.fm have much in common. last.fm (in its full version for U.S., Great Britain and Germany) allows free access to the basic service (streaming radio), and sells premium accounts with access to additional features without ads. last.fm makes money through ads, selling of paid accounts and partnership with Amazon, where all music can be legally bought.
The success of last.fm is in its partnership with over 180 000 musicians and music labels, which often present their music on last.fm before the dates of official releases. There are 48 million users registered on last.fm for today. Because of the difference in legislation of each country, and the policies of record companies, last.fm needs to adapt business in each new country.
Revenue: Paid subscription to last.fm radio (outside the U.S., Great Britain and Germany).
The website contains the most complete and accurate information on movie showtimes, concerts, exhibitions and theatrical performances; the largest catalog of addresses of restaurants, clubs, museums, showrooms and shops in the main cities of Russia and Ukraine.
The most authoritative book, music, restaurant and film critics publish their reviews in "Afisha." Over three thousand user reviews and over 30 thousand user ratings are published on the website every month in addition to professional reviews.
Revenue: Advertisements
This website allows you to track the tours of your favorite groups, which are selected from the list of your favorite music. The platform is integrated with music services (Spotify, Last.fm). A notification system keeps users informed about the upcoming music events.
The service indexes information from a large number of electronic ticket retailers, websites with event schedules and local media. The resulting database combines a huge number of concerts and events.
Success Factors
Content
The platform is responsible for all published content, so all claims would be addressed to the platform in case the data appears incorrect.
The completeness and the accuracy of information (and so the key value of the project as a whole) will depend on the sources of the content.
Niche focus;
It is rather difficult to achieve virality considering the fact that the product is not only in the B2C segment, but also in the business customer segment. This means that cool design and kittens on the landing page are not enough to create virality. Only a top-quality product with good network effect and a big base of users can possibly make the project go viral, which essentially means nothing.
Creation of a network effect is a hard work of combining different directions of marketing strategy and a bag of luck.
Simplicity;
If you want people to share information, you have to make this process as simple as possible. Abilities to share and to like has to be intuitive.
Partners:
The competent choice of a partner will save on marketing and give the service a competitive advantage in the form of understanding of the market and in loyalty of the customers.
Advice
The Clubture project was taken as the basis for this case. The description you have provided does not clearly state whether you’re going to use direct sales or not. That’s why we have added sales as a hypothesis.
1. It is necessary to specify the target audiences of the project to optimize marketing and promotion costs. It's worth noting that in addition to concert lovers the TA has to include business segment, which is implied in the monetization methods.
2. Decide on the business model and the core service.
3. An extensive list of monetization methods is good, but at the early stage it is better to integrate these methods gradually, defining their order by the least impact on the key value and consumers. Some methods, such as banner ads can reduce loyalty.
4. The market of event guides has been formed already. The only chance for new players to succeed is to demonstrate strong competitive advantages, understandable positioning and appropriate development strategy.
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