Disruptive online music platform with multiple revenue streams and game changing crypto payments.
Business overview
| Location | Blackpool, United Kingdom |
|---|---|
| Social media | |
| Website | www.aurovine.com |
| Sectors | Entertainment Digital B2C |
| Company number | 7926303 |
| Incorporation date | 27 Jan 2012 |
Idea
Introduction
Aurovine is an online new music discovery platform. From Beta launch in March 2012, Aurovine has closely followed a predefined roadmap with a 3 phase implementation.
Phase 1 - Build an ethical music e-commerce platform concentrating on content and database growth with robust architecture.
Phase 2 - Deploy multiple revenue streams to monetize the platform. Comprising A) Worldwide Distribution B) Promotional Packages C) Synchronisation Licensing
Phase 3 - Implement innovative and first-mover crypto currency technology with revolutionary transaction and rewards system benefitting investors, artists/musicians and end users.
Our phase 3 funding round will allow us to further develop and market our crypto currency solution. We hope that the idea will change the way music is consumed and provide an ingenious leading-edge response to the diminishing returns of digital media. We see it as a solution for the dichotomy that exists between paid downloads and piracy.
Intended impact
Bitcoin has become a household name with a lot of media coverage since its launch in 2009. Through many of its unique properties, we think that Bitcoin allows uses that could not be covered by any previous payment system. Derivatives of Bitcoin (known as alt crypto currencies) use the same basic code structure and can be traded for goods and services just like bitcoin.
We are developing our own crypto currency (AudioCoin) for the purpose of enabling an e-commerce platform for music and media file exchange.
We believe that Aurovine is well placed to lead the music industry with a crypto currency solution for online transactions and rewards. We have successfully built and tested a beta version of the currency.
Along with our co-founder Development Director Mark Szymik we will source a developer who has Cryptocurrency experience to help us implement the currency. Bitpay raised $30 million in investment including investors and advisors such as Richard Branson, Peter Thiel (ex Paypal) and Sean Parker (Facebook Advisor). We believe that this kind of investment shows that virtual currency is here to stay.
Once the coin (codename: AudioCoin) has been successfully deployed on the Aurovine platform we will develop widgets and plug-ins allowing other music platforms to sub-license the currency for e-commerce transactions.
As with Bitcoin, we expect the value of the AudioCoin to grow in value as it becomes adopted for online transactions and attracts financial speculators. We plan to launch the coin with a 10.5 billion limit.
As an example (and following the examples of other crypto currencies such as Dogecoin and Digibyte), we will lobby for the coin to be included on crypto exchange markets (such as Cryptsy). The coin will then acquire a trading value.
As a realistic and arbitrary example, if 100 AudioCoins acquire a value equal to 10 cents, the total value of AudioCoins at that point would be $10.5 million dollars.
We plan to have a 5% pre-mine of the coins to reward Seedrs investors and also artists and users of the platform.
Substantial accomplishments to date
Following successful implementation of phases one and two we have a growing database of artists and end users along with an expanding worldwide distribution catalogue.
Our website has been built by ourselves using PHP on the Twitter Bootstrap framework. We have also developed our own widget that can be deployed on most webpages and have built an adaptive payments gateway for our users. Our site is fully mobile and tablet optimised with a responsive design.
Our listen, rate and share software allows users to rate and recommend (share) music on all social media services that we know of.
Current stats at the time of writing are: 986 artist accounts, 64 label accounts, 3568 tracks, 427 fan accounts, 2391 Facebook followers and 1565 twitter followers.
We have distribution through a number of major music retailers including iTunes, Google Play, Amazon, Spotify and Deezer.
We also have a bespoke Synchronisation music placement deal with Rumblefish.
Monetisation strategy
Along with our existing revenue streams (website sales, worldwide digital distribution, promotion and synchronisation licensing), the launch of our own virtual currency has the potential to create an income stream without limits!
We currently have 4 potential revenue streams live on the site.
1. Direct sales of high resolution digital audio files (with provision for digital sales). Our streaming music system allows users to sample low bitrate mp3 files before the option of purchase. We were the 2nd global music platform that we know of to promote and allow downloads of high resolution WAV and FLAC files.
2. Promotion: We currently supply 3 promotional packages for artists - PromoSplash, PromoBoost and PromoBoost+
3. Worldwide Distribution: We currently supply 3 worldwide audio distribution packages. Free, Label Account and Pay Per Release. Depending on the product selected Aurovine receive a variable commission on each sale. (Worldwide distribution is the uploading of sound files for sale on platforms such as iTunes, Amazon, Spotify etc)
4. Synchronisation - We have a bespoke delivery agreement with Rumblefish that includes preferential terms for monetisation of music placement (including preferential rates for Youtube)
Use of proceeds
Monies raised from the Seedrs campaign will predominantly be used for development and marketing.
We will use a small percentage of the funds to improve usability on our existing platform and to further automate the delivery of files to our worldwide distribution partners.
The bulk of the funds will be used for development and marketing of the new virtual currency. We have already sourced coders for this purpose.
We will streamline the process of using the currency with a quick step by step guide to obtaining online wallets and crypto currency exchanges.
In terms of marketing there will be an educational offensive highlighting the benefits of virtual currencies and how they can be used for online commerce.
We'll also need to further engage the online crypto currency communities such as Bitcoin talk (https://bitcointalk.org/) to garner support and awareness for the project.
Market
Target market
Our market is worldwide. The appetite for online music consumption is increasing with internet and bandwidth growth.
Our core target market consists of music enthusiasts looking for new music and cutting edge sounds. They also appreciate the value of high resolution non lossy files such as WAV and FLAC.
Our worldwide distribution system also allows for mainstream users consuming music thorough streaming services like Spotify and download services like iTunes.
Our virtual currency project we expect will also attract technology and disruptive financial speculators looking to consume our products at the same time as investing in our currency.
The IFPI Digital Music report 2014 highlights emerging markets such as Brazil and Mexico, where both downloads and ad-supported streaming are growing rapidly from a lower base. As a global platform Aurovine is well placed to tap into these emerging markets and our marketing strategy will target these high growth areas.
We are also targeting mobile users with our concise and responsive website that allows our core interface to be used easily on hand-held devices. The IFPI report shows that growth in emerging markets is being driven by increasing smartphone penetration.
In short we are closely monitoring worldwide trends and adapting our service to meet the demands of consumers.
Characteristics of target market
The IFPI Digital Music report 2014 shows that the industry's digital revenues grew by 4.3% in 2013 to US $5.9 Billion. Rather than attempting to compete with other music platforms we aim to welcome them where possible into our world wide distribution system. This allows us to embrace subscription services such as Spotify and Deezer and our Sync licensing agreements allow us to take advantage of the ad revenue supported services such as Youtube.
The IFPI report shows that the number of paying subscribers to subscription services rose to 28 million in 2013, up 40 per cent on 2012 and up from only eight million in 2010. In addition Revenues from advertising-supported streaming services, such as YouTube are also growing — up 17.6 per cent in 2013.
We must not, however, forget the importance of digital downloads which still account for a substantial two-thirds of digital revenues (67 per cent) and are still growing in developing markets such as South Africa, Hong Kong, Philippines and Slovakia.
Marketing strategy
It is very important to us that we continue to concentrate on mobile and tablet delivery. The recent econsultancy report showed that "Across all of the music websites we have access to, approximately 20% of website visits come from a mobile device."
They go on to predict that this will rise to a figure of 30-35% within the next 12 months. We realise the enduring importance of desktop delivered digital downloads but we also see the growth of mobile music consumption and alongside our responsive website we will be using some of the proceeds for the campaign to develop our own multi-lingual app to penetrate further into developing markets.
Our marketing efforts will also be stepped up with additional finance and we will be using multiple channels to reach our target audience including: email marketing, social media campaigns, adwords, seo and affiliate marketing.
Competition strategy
There are myriad music services globally and our slight pivot in 2013 allowed us to embrace these services rather than compete against them.
Our worldwide distribution service launched in November 2013 and we now supply our (opted in) artists to many of the major music platforms including Google Play, iTunes, Amazon, Spotify and Deezer.
Our crypto currency system will be the first of its kind that we know of in the music industry and we hope will give us first mover advantage in this emerging concept of how to streamline online transactions.
We believe that the growth of our former competitors (whichever survive) will further strengthen our finances providing a backbone to our cashflow going forward. We also plan to reward all investors with a dividend of coins proportional to their investment.
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