Management Studies Department Master´s of Business Administra6on Program
“Study of Quito´s rock industry” Marco Antonio Lalama Gross 2014
Problem Ecuadorian rock music industry is not compe66ve compared to similar markets, although talented musicians abound.
Even when new technologies increase promo6onal poten6al and decrease produc6on costs.
Main Objec0ve To draL an proposal for improvement
Specific Objec0ves • To develop a theore6cal frame of reference to analyze the object of study. • To carry out an industry diagnosis for rock music produc6on in Quito • To draL a proposal for improvement for rock music produc6on in Quito.
Central Ques0on What is the industry structure of rock music produc6on in Quito?
Hypothesis There are key factors that can improve the compe66veness of rock music produc6on in Quito.
Methodology Exploratory Research
Qualita6ve approach
Primary Sources 12 Semi-‐structured, in-‐depth interviews 6 focus group par6cipants Analysis forum, 3 speakers Forum, 2 par6cipants Survey #1, exploratory, 24 valid responses Survey #2, 10% error margin, 90% confidence level, 72 valid responses, popula6on 2MM.
Methodology Exploratory Research
Qualita6ve approach
Secondary Sources 12 Reference books 8 Newspaper ar6cles 5 Academic papers 5 Ins6tu6onal defini6ons (UNESCO, UNCTAD and others) 3 Graduate School Thesis (UASB, FLACSO) Law project for Social Knowledge Economy -‐ Código Orgánico de la Economía Social del Conocimiento COESC (wiki)
Theories, analy0cal tools and concepts 1 2
• Crea6ve Industries: UNESCO, UNCTAD, WEF • PEST Analysis • SWOT Analysis • Michael Porter
3 4
• Five forces industry analysis • Value chain • Unique value proposi6on
• Kotler, Dickson: innova6on, imita6on, marke6ng • Marke6ng for the Arts
5
• Anita Elberse • Joanne Scheff-‐Bernstein • Douglas Holt
Main Findings
Main Findings
Musical produc6on
Crea6ve process, talent management and marke6ng
Product development, sales and marke6ng
Rock Music Industry in Quito
Others
Crea0ve process, talent management and marke0ng Instability within bands
Dychtomy between commercial success and originality of musical work
Economic hardship
Almost no bands work with professional producers and engineers, managers, booking agents, and other actors in the value chain
Musical Produc0on Small quan66es of gear and equipment available
Most song and albums have been produced by the musicians themselves
Know-‐how exists, in small scale
Professional producers and engineers are available, but they are not compe66ve on an interna6onal level
Product development, sales and marke0ng The majority of the material lacks interna6onal produc6on standards
Lack of interest from tradi6onal media
Two publics but only one of them is a viable market segment
Demand for physicial records is shiLing towards digital downloads or streaming
Bands are vulnerable due to their posi6on in the value chain
Uncertainty regarding digital promo6on and distribu6on
Visuals are of key importance
Other findings Knowldege of management prac6ces is prac6cally non-‐ existent
Impact of new law: Código Orgánico de la Economia Social del Conocimiento COESC
Public policies impact analysis and delay on payments from public sector
Free fes6vals
Abysmal pricing differences between local and interna6onal shows
North/South division
Very liqle ins6tu6onality
Scarce dialogue within industry
Proposal for improvement Product development, sales and marke6ng • Permanent media exposure • Digital distribu6on strategy • Copyright educa6on
Musical produc6on • Original composi6ons • Professionaliza6on of recorded products • Pre-‐produc6on work
Crea6ve process, talent management and marke6ng • Sustained carreer • High quality videoclips • Live shows of interna6onal standards • Intensive promo6on of shows
Artudinal management and personal dynamics of interac6on • Management contracts/ Musicians basic needs should be met • Management courses for musicians
Communica6on inside the rock industry
Rock industry in Quito
• Formal classes: Rock Studies / Crea6ve Industries • Musicians guild • Ver6cal integra6on of record labels
Conclusions • Rock music in Quito is a long run, high risk project • Many years to consolidate a band´s brand name • Lack of con6nuity is a problem to reach the most important market segment. • Reluctance to become professional • Need for paradigm shiL regarding commercial vs original work • Visuals are of key importance • Economic hardship for musicians • Rela6ve scarcity of industry actors
Conclusions (cont.)
• North / South division • Public policy analysis needed • Two publics but only one viable market segment • Musician´s weak posi6on in value chain • Need for “Interna6onal Valida6on” • Lack of ins6tu6onal values / Rule of Law • Lack of interest from tradi6onal media
Recommenda0ons • Exploratory research/ Learning curve • Present and future economic impact of music produc6on in Quito • Produc6on and sales of recorded media • Live shows • Song licenses • Related merchandise • Need for own management prac6ces • Detailed analysis of new COESC Law • Need for more industry actors • Joint ventures with interna6onal managers and promoters / know-‐how and technology transfer
Recommenda0ons (cont.)
• Need for industry dialogue • Research and knowledge development through a school or program • Management training for musicians • Execu6ve program for managers • Industry supplier data base • Entrepreneurial idea development • In-‐depth studies • Advising opportuni6es
Marco Lalama-‐Gross Quito, Ecuador
[email protected]
https://www.researchgate.net/profile/Marco_Lalama https://uisek-ec.academia.edu/MarcoLalama https://ec.linkedin.com/in/marcolalama
