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Melody's shows are best enjoyed in VR though. As much as a smart TV app is a good idea for now, their long term focus should be on moving people away from their TVs and towards their headsets. At some point in the not too distant future, watching a show on a TV will feel like watching something in black and white does today. VR is utterly transformational and when the headsets look something like glasses (which won't be too long), as nice as a smart TV app may be for melody, its focus will be on its VR app.
If you thought LG was good tonight, wait until his 2021 show (if it happens!) in VR and then you'll really be impressed!
You're only ever going to hear about the people who can't access the gig. Those who can access will be enjoying the show. It may seem like a lot but in the context of how many tickets they've sold, the number of people complaining will only make a up a tiny fraction.
@50rrell - regardless of where a ticket is purchased, viewers will watch the show on MelodyVR. If they buy it through the app, they'll watch it on the app and if they buy it on Ticketmaster, they'll watch it on the MelodyVR web viewer.
Put yourself in the shoes of someone looking forward to a show from their favourite artist. Of course they wouldn't be getting excited about the app that's broadcasting it! But they would download the app and enjoy the show and then use the app to look for more shows in the future (as well as having new shows advertised to them through notifications).
If a new artist releases an album, people aren't on twitter waxing lyrical about the platform that they listened to it on.
For people to be getting excited about Melody on social media, it needs to offer full VR shows that are genuinely different from what they've seen before.
That's not to say this show isn't huge news for Melody - it's just that we shouldn't be judging its success on how many people are talking about Melody before the show. For now, Melody is a means to an end for people who want to watch this show. After the show, the only way large numbers of people will tweet etc about Melody rather than the show is if something goes wrong. In time, people will develop an affinity to Melody but let's not expect too much before people have even had the chance to see what they can do!
As excited as I am about the LG gig, I have a few thoughts that haven't really been discussed.
First of all, I don't think Melody's margin on this show is going to be very high. From Liam Gallagher's point of view, he has no loyalty to MVR and could have just as easily worked with any number of different content creators. So Melody's share of the total revenue generated is likely to be quite small I think.
That being said, and as is always the case with live streamed gigs, the marginal cost of additional ticket sales is very low (almost zero). Assuming lots of people buy tickets, a small slice of a lots of tickets may turn out to be a decent amount.
Part of the reason for shareholder disgruntlement over the past few years was the miserly revenue figures. What this gig will do, first and foremost, is show that there is demand for what Melody has to offer. The extent to which it is profitable in its current form will become clearer over the weeks and months ahead.
I see no reason why Melody's name would be mentioned when promoting the gig. First of all, it's hardly very 'rock and roll' to be flogging something on the One Show in the first place - to then expect LG to mention as app which, for him, is just a means to an end is unrealistic.
So what use is a gig like this? Well, it gets lots more people to download the app and register an account. This will mean they can be targeted with future advertising. Even if this is a loss leading event, it would surely be worth it for the amount of new customers they'd have.
I think it's a shame this event isn't VR - that is what sets Melody apart. Other VR shows are starting to emerge but Melody has more experience than anyone else in filming shows with this technology. Over the almost 5 years they've been recording shows, they have developed a range of cameras that are each suited to different settings (dark room/festival etc). This experience serves as a significant barrier to entry for new competitors.
The fact that LG has chosen Melody when others could have done what they're doing is a great credit to the pulling power that the team have. When Melody produce VR shows, though, they won't have to rely on pulling power as they are the only smart option for an artist hoping to take advantage of the opportunities this can bring.
So in conclusion - the wheels are starting to turn but there's still a long way to go. Melody deserve nothing but praise for the partnerships they are forging and the progress they've made and I, for one, am excited for what's to come!
Taken from the final results RNS:
'We intend to further our exposure to theatre capture once we have progressed our navigation of the rights and distribution framework of this new and exciting opportunity.'
With Gore on board, it's in everyone's interest to come to an amicable agreement with regards to licensing and rights but this is still a complicated negotiation process. Much as it's natural for investors to want to see instant results, getting the legal framework in place is crucial for future revenues and success.
There's only so many times it can be said but here we go again. What we are currently being offered by Melody could reasonably be called Melody lite or Melody 1.0.
This version of their app is so far from what will eventually be offered.
Criticising their lack of revenue/followers at this stage is like bemoaning a car's low top speed when in first gear.
You might argue that they should have changed gear by now but that is a different point.
https://www.facebook.com/business/news/insights/shifts-for-2020-multisensory-multipliers
Lots of interesting stuff here.
1. Reference to the fact that increasing numbers of consumers prefer to watch video content on mobile devices than computers.
2. Video consumption is increased rapidly
3. 'The distinction between VR and AR will vanish... The real and virtual worlds will just mix and match throughout the day, according to our needs.' This is where it gets really exciting. You could be on stage in a fully immersive VR world playing an augmented guitar. If/when AR and VR combine that will be when the real magic happens. The rumours are that Apple's long awaited device will combine AR and VR.
4. Of those surveyed in the US, Korea, UK and Nigeria, 51% said they were excited about attending concerts and other events in VR. There's about 700 million people in those 4 countries.
5. Facebook's commitment to VR is unwavering and Melody holds one of the keys for pushing mass adoption.
@GeordieShores - let's take your points 1 at a time:
1. Audience size not big enough to make money
More than 12m people watched Travis Scott on Fortnite. Boiler room has been streaming DJ sets for 10 years with huge view counts. People have always paid for music content - there used to be huge DVD/VHS market for pre-recorded shows that has now disappeared with a vacuum waiting to be filled.
2. They have good content but not enough to make money.
You are only seeing a fraction of what melody has to offer right now so I don't think it's possible/reasonable to make this conclusion yet. A huge and yet to be revealed element of Melody's offering are their bespoke originals which Matchett describes below:
'We're about 50/50 at the moment. Whereas if we had this conversation 18 months ago, we'd be almost 100 percent focused on concerts. Our original content can be something really straight forward like an acoustic performance. Or it can be something really complex - a unique 3D world which can give a real journey into an artist's vision and something that can be completely conceptual. We're working with artists on crazy things at the moment like being in space, being in the past. When we talk to an artist and we talk about what can we make, it is a totally blank canvas.'
We've seen some of their originals but not the really exciting 3D world stuff referred to here.
3. Failed to take advantage of lockdown
During the early stages of lockdown, they couldn't do anything because artists, producers etc were locked-down. Since then, they've broadcasted a series of live shows and announced that there will be more. They are committed to high quality content so did not want to put any old rubbish out. Lots of artists were streaming from their homes - Melody had to make their content stand out which takes time and resources.
4. Not enough people have vr headsets
This is true - until trying Melody in VR, you haven't really experienced it. But huge amounts of money continues to be invested in VR and as the devices become more streamlined, they will undoubtedly become more mainstream. In the meantime, the mobile app is the next best thing.
5. No-one would watch a concert on a mobile.
You can cast the content to a TV of any size.
I watched this video yesterday evening and it got me thinking - https://youtu.be/WtNfFHsz8I4
There's nothing too new or exciting but one thing stood out to me. Ben Samuels said that artists were keen not to charge for their content (at least in the early stages of the crisis). Clearly what melody has to offer needs to be a really premium product for artists to be prepared to ask their fans to pay for it and for fans to be willing to pay.
Anyone who has seen what Melody has to offer in VR knows how genuinely disruptive it is. The technology will continue to improve and I have no doubt that this will be what Melody ultimately becomes known for. The content will be so unlike anything else, people will not think twice before paying.
What about mobile though? I think it's perfectly reasonable to expect people to pay to see a live show on mobile. But maybe it's worth remembering that lots of tech companies no longer use traditional payment models. Consider an iOS/android game - they're often given away for next to nothing. Once you've downloaded the app, you're given options to purchase all sorts of add-ons.
What I'm trying to say is that melody may well generate revenue through ticket sales. But they may find out more can be generated by using the free/close to free shows as a hook to capture fans and then to money from there.
As some examples, there could be adverts before the video starts. Melody could give potential advertisers a far better idea of who the profile of the fans who'd view the advert than they'd be offered elsewhere.
Obviously there could be product placement during the show itself.
But here's where it gets exciting. Across the internet, music consumers are getting more used to tipping the content providers they like. It could be the case that more money could come this way rather than traditional ticket sales (Radiohead made a fortune for In Rainbows - an album they said fans could pay what they were able to).
How about having additional freemium options as the show is taking place? Fancy bring on stage with your favourite artist? There could be a video wall of fans superimposed behind them - how much would people pay for that? I'm sure there are better ideas than that but hopefully you see my point.
Obviously there's all sorts of e-commerce opportunities too with links to merch and suggestions for future shows.
My point is that it's a mistake to think that the revenue generation stops at the ticket sale. In many ways, it's conceivable that charging anything for a ticket could actually a barrier to revenue generation.
Not long before we find out I guess!
Apologies - I'd hate anyone to think I wasn't 100% behind Melody. Very exciting times ahead.
We’re never trying to replace live, we’re offering people an incredible alternative, that’s complementary to the real thing,” counters Matchett.
Source - https://www.standard.co.uk/business/entrepreneurs-melody-vr-lets-you-get-out-of-your-head-at-a-gig-without-leaving-home-a3904696.html
I am directly quoting AM who said that Melody will never replace live!
Agenda?? Look at my post history.
They haven't started selling tickets to virtual shows yet.
Judge their revenue when their full range of products is available. The pre-recorded library of shows was never intended to be the revenue driver for them.
If after Melody's full suite of content has been available for 1+ years their revenue is still low, you'll be right to ask questions.
But only a fraction of Melody's offering has been/is currently available.
This is why the live at Brixton series is so significant as it in an indication that they're rolling out the far more lucrative live element of their business model.
@The_Modeller
I think you've missed the point I was getting at.
Melody's business model isn't about taking revenue that used to be physical ticket revenue.
They can't hope to compete with physical shows and they're not trying to. The promoters do not want to lose physical ticket sales and don't want the availability of virtual ticket sales to lead to the risk of their events not selling out.
But what Melody offer is a brand new revenue stream for artists/labels/promoters (more crucial now than ever with the music industry on its knees). Once the event is sold out, think of the potential Melody customers:
1. Too far from gig
2. Couldn't get a physical ticket as they sold out
3. Physical tickets too expensive
4. Health reasons
5. Work commitments
Etc etc
Even a stadium only has a capacity of say 50000 tickets. Many acts could sell out stadiums many times over. Melody can offer effectively infinite tickets with a marginal cost of near £0.
None of this is new info but I think it's worth restating as some people still don't seem to realise where Melody are positioning themselves.
We are still only seeing a fraction of what melody has said is coming. Expect social features and much more (this article is worth a read if you haven't seen it -https://www.nme.com/blogs/nme-blogs/virtual-reality-can-make-you-feel-like-youre-at-an-actual-concert-onstage-with-the-band-how-vr-is-bringing-live-concerts-into-our-homes-2381721)
The Live Nation 'Drive in' series is a new concept that they will be hoping to sell to capacity. Their goal will be to sell as many tickets as possible for people who can physically be at each event.
From their point of view, more money can be made from physical attendees than virtual ones.
What happens if the events sell out though? If only there was a way of being able to generate revenue above and beyond the revenue from the tickets sold to the physical attendees...
This was and will always be the model for Melody when they are broadcasting someone else's live shows. First, fans will be given the chance to buy the high cost physical tickets. Then, all those unable to attend will be given a low cost alternative (Melody).
It would be stupid for a promoter to risk not selling out a show by offering virtual tickets from the get go.
I'm not guaranteeing Melody will be involved in this series of events but their absence from the initial promotion doesn't mean they won't be involved later down the line.
I see what you mean. Yes, in theory, a more expensive production could have a higher fee for consumers. But in the early stages, I'd argue that consumer demand is very elastic. When people haven't tried something, you don't want to scare them off with a high price (regardless of the artist/production value). I think it's in Melody's interest to keep the price to consumers low which gives them a big reason to keep their costs per show low too.
It's funny you mention Reading. I don't think it's a co-incidence that they promoted Wireless on Twitter. I think it's very likely Reading/Leeds will offer something similar to Wireless Connect this year. And then next year hopefully it'll be recorded on site (don't forget Melody has 70+ festival partners).
In many ways the Covid situation presented an open goal for Melody. With no concerts, this looked like their perfect moment. But they could have blown it. So many artists are broadcasting from their bedrooms/kitchens etc for free.
So the only way Melody can succeed is to offer something utterly unique. High production values and nothing like people see anywhere else. How can you best maximise your production values on a finite budget? Get a small number of fixed locations and present a fantastic product from there. I have so much respect for the BoD for not diving in and trying to churn out lots of sub optimal content to try to make short term gains. This company has always been about trying to compete with the big boys.
*Diseconomies of scope are what Melody is avoiding with this approach.
Rather than economies of scale, the term that I think that is relevant here is diseconomies of scope. That is to say it is far cheaper to offer one product (one set of concerts from a single venue) than a range of products (different shows in different contexts). It's difficult to overstate the range of contexts that can exist in live music. How big is the stage? How light is it? How much will the artist move? etc etc
It's not to say that diversifying is bad - it's essential if a business wants to grow. But in these early stages where limiting costs is important, I think doing one venue and doing it well is a big advantage.
As for the quote process, I'm not sure what you mean. Melody has a 3/4 way licence with artist/label and the venue. There's no bidding process - Melody is the owner of their content. So they have an incentive to keep costs down where the can. They can pass on higher costs to the consumer but the problem is each new venue/show is a gamble and every less than perfect production is a black mark against their brand.
About a year ago, I went to an event at the SAE institute where Matt Williams, the Technical Production Manager at Melody, talked through the tech that they used to produce their content. I was surprised by the fact that they didn't have a single camera that they used across all contexts. Instead, they used 3 different cameras that were each suited to different types of shows. Matt spoke about how they customised each camera but every single show required deliberation over the best tech to use and how best to customise that camera for the best production value. There's no doubt that it is an expensive process to produce content at unfamiliar venues so today's announcement is special for more than just who's involved.
Hosting a series of events at a single venue is a huge deal for Melody. The marginal cost falls dramatically. That is not to say that Melody won't at some point host shows from a range of venues but, in the short term, this is a big advantage. Theatre is even better for this reason. The challenges of filming theatre from a fixed venue are nothing like the challenges of filming live music across venues that could range from festival stages to night clubs and everything in between.
Ultimately Melody eventually wants to be able to offer concerts from every conceivable venue. In the short run, however, this 'Live in La' and 'Live at Brixton Acadamy' model is an exceptionally smart way of moving in the business forward without the kind of costs that might have incurred if they'd have carried on filming across venues.
Melody's shows at Brixton academy will become their calling card. Why spread the production budget across 100 venues when it can be concentrated in 5-10?
Wow, I'm happy to be corrected!
So why not start immediately then? I can only imagine that the current restrictions will allow for live streaming but not the quality of live streaming/production that would be required to set them apart from the competition.
The guidance of 'Small group performances without an audience' does not mention sound/lighting engineers etc so I'd be curious how many production staff could work alongside an artist under the rules that have been set out.
Good news anyway and I look forward to seeing what they have to offer in the not too distant future.