| In recent years,technological breakthroughs have modified the way people consume music.In the past,a big part of the revenues came from the sales of physical albums in different formats(almost 80% of the total revenues),however,when Napster appeared making the music available for free,anytime,anywhere through streaming,the industry plunged and many companies and artists where affected.As a solution,the industry found the live-music events a way to increase their revenues.Artists increased the cost and number of live presentations.Promoters increased their presence and diversified through music festivals and other live-events formats.As technology keeps changing,there is a risk that live-music industry could face a similar situation than physical recorded music industry faced some years ago.Today options like live-streaming,video-streaming,social media streaming and so on are a real threat for the industry,moreover because the lack of regulation(as it happened with Napster).In addition,people who are not able to attend to the concerts are using this options to avoid a phenomenon called FOMO(Fear of missing out)which is causing anxiety mainly in millennials.We believe things could be done better in order to avoid the same affect in the industry and to provide the people with a new solution that reduces de FOMO effect.Therefore,we set up INCOMMON,provide live-music experiences that will allow people to live any concert around the world as if they were there.We are now proving our technology that will enable us to reproduce any live-music event around the world,anywhere,real time.We have identified in the live-music industry,we have developed a business model,creating a new market involving all existing players(artists,promotors,fans,sponsors,venue owners)providing value to all of them though our proposition.We won’t be competing with the big-stablished promoters,but will complement them representing not only a potential additional revenue stream for them,but also the first real attempt to foster the regulation of the video streaming adding value to the live-music industry.Our strategy is focus on three pillars that will lead our actions:(1)Strongly invest in innovation through R&D(2)Build a strong brand being identified as a trust-transparent company(3)Our people as the most important asset,we want and we will value talents.We strongly believe business has evolved;from NS(income)business passed to profitability and now is all about cash flow.Thus,in our projections we aim to have positive cash flow in the year 6.In addition,considering investments and marketing and R&D and a discount rate of 16% we project a NPV of $60,474 USD and an IRR of 17.8% in 10 years,which make our business feasible and very attractive. |
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