Agile Business Models

I wish there was a methodology for developing and adjusting business models ‘on the fly’ … like in ‘agile’ software development, where you just start writing code but then ‘stay’ loose and flitter back and forth until you find the right code architecture.

I’d like to start charging people $5/month to download Ambisonia’s content. Then I want to change that, a couple of months down the track, to something a bit different… then I want to change it again, and again, until I find a ‘business model’ that fits both the business and the audience.

My guess is that doing this might be commercial suicide. But I dont know.

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5 Responses to Agile Business Models

  1. oli says:

    i don’t believe people will pay you for downloading content. you will kill you business right from the begining.

  2. Hi Oli,

    The plan is to have all content streamed… like on youtube.com. This will not reduce the number of people using the site, this will dramatically increase the number of people using the site.

    My estimations are that 0.6% of regular users will want to pay a monthly subscription fee to download all content. That’s 6 in 1000 people… a very very small minority.

    That figure is an estimation based on research of the ‘freemium’ model as it is done online.

    Please note that there _is_ no business to kill with Ambisonia. It is not charging for anything that will kill ambisonia.

  3. The question I miss seeing discussed in this context is how the content providers: the artists, sound field recorders, etc. that provides the ambisonic recordings, will be compensated for their contributions.

    IMHO once you start charging for downloads of ambisonic recordings, you are starting an online record label of some sort. If so, proper compensating of the artists have to be part of the business plan.

    It will also be a question what kind of content you provide. Do you provide audio files mainly aimed at demonstrating ambisonics, or are you providing true artistic content? In the latter case, you’ll also have to build an artistic profile for your label.

  4. Hi Trond,

    My first priority is to generate revenue so that Ambisonia can ‘continue’ its existence. My second priority is to generate revenue for the artists so that they can continue their work.

    A system of voluntary ‘tips’ will be put in place at the same time as the subscription service. When people sign up for a subscription, they will be given lets say $10 or $15 worth of tipping credit for them to place wherever they like.

    But you are right that charging for downloads may seem unfair to the artists. Shouldn’t they get a percentage of the subscription service? Maybe they should. or maybe I shouldn’t have 2 different ‘earning’ mechanisms (subscriptions and tips). Maybe it should only be 1 mechanism.

    This is the challenge. How to organise revenue that is fair to the artists and allows Ambisonia to keep existing.

    I dont want Ambisonia to be a ‘label’ … I dont want to screen or censure the work that gets submitted. See it as a youtube for surround sound, but where the audience chooses who actually earns income.

  5. Trond,

    I fear that my previous comment wasn’t very clear. There’s a clearer post here:

    http://blog.ambisonia.com/2008/08/10/planed-business-model-clarified-and-questions/

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