Source: http://thesociallife.org/social-media-marketing-what-does-that-meme/

In doing my research on business models I found that SoundCloud was working with non music related brands to sponsor musicians on the site and therefore drive participation of DJs, musicians and party/concert producers who are paying customers but also users who come to interact with them and each other. While this could be a business strategy we employ I think there needs to be deeper analysis of this before pursuing.

We are leading with the idea that social music is an aim and in an of itself. Social media can provide musicians with an easier way to land sponsorships and brand partnerships. For example, one celebrity sponsored tweet can generate $2,500 to $8,000. By partnering with DJs and musicians, brands are equipped with an even bigger microphone to reach their customers, in addition to the musician/DJ stamp of approval.

“According to data from William Chipps, author of the IEG Sponsorship report, corporate sponsorship by consumer brands incorporating music into marketing programs was expected to exceed $1.17 billion last year, nearly double what it was six years earlier.” (Panos Panay, CEO of Sonicbids)

Digital Natives and Millennials which are the primary target group for miXXerS (18 – 35 year olds) not only like music but listen to it a lot even if they are not as brand loyal as their parents (WSL Retail) especially since they cannot always afford loyalty and make decisions more based on competing prices.  More brands are turning to emerging artists (not backed by a label, entrepreneurial) who are socially connected online and able to build a loyal fan base through active engagement on social networks. Given Millennials and digital natives are our target audience such a strategy can prove useful.

Attaching an artist to branded content is a sure way to guarantee consumers enjoy and remember their experience, and therefore, the brand…. Their collective reach is incredibly appealing, according to a study from Music Metric. That’s because emerging artists are reaching hundreds of millions of fans who are already engaged and connected with them, and these very fans can activate on behalf of a brand. (Panos Panay, CEO of Sonicbids)

A brands spokesman speaking about the brilliance of their product is not as effective as referent power of someone’s favorite musician or DJ speaking about that product in a favorable light. This relates to the concept of power as influence as well as the extent to which that power is propagated throughout the network through reposts, follows, likes and conversations etc. While miXXerS can potentially enable this we will examine the issues surrounding this before making any such decision and at launch this would not be a part of our business model.