- My major company, the first participative record company in France
- The web 2.0 as a way to reduce the level of risks taken by the company
- A business model transposable to other businesses
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.
[...] We obviously 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. Moreover, this fast successful is currently creating an attraction from their traditional competitors. These companies could feel like that recycling this concept and join it into their own business model. [...]
[...] Besides an effective promotional campaign, the firm also guarantees the choice of the coproduced albums with the Internet users and ones offline. By deciding to gamble on their favorite artists, the Internet users select those who will see their produced, distributed and promoted albums. The public also takes part in the strategic decisions. The baseline of the label is moreover "Music is your business". However, a pre-selection of the young talents is operated by the label, what is not inevitably the case for all the emergent labels of this sector on Internet. [...]
[...] The artist will earn of the sales incomes, My Major Company and the distributor The return on investment can be really important if we look at for Grégoire or Joyce Jonathan who have known in 2009 and 2010 two successful years N.a article about the value proposition and the income sharing of My Major Company concept, accessed on the 3rd of January 2011, available on http://www.veilleperso.com/my-major-company- th E. BRAMLY January 2008, interview of the founder of My Major Company, accessed on the 4 of January 2011, available on http://tendancecom.com/zoom-sur-mymajorcompany%E2%80%A6-interview-de-simonistolainen-cofondateur-de-mymajorcompagny 7 This new business model has real advantages for the company because it does not require a really important investment to launch artists because it is their customers who gives them the cash flow required for this. [...]