Mad About Music


Jam-boree: The Next Big Thing?
August 21, 2008, 6:01 pm
Filed under: Music | Tags: , , , , , , , , ,

I met a couple of people from the music industry today over beer and lunch. As usual, I was on my current favourite topic of conversation — Ajay Mahajan and his innovative new music concept: Jam-boree. My guests, one, a marketing manager with a music label, and the other, a VP with a large event management company, were thoroughly impressed with the whole concept.

As we downed our beers, the conversation veered off in an interesting direction. In a situation where the music business is going through a bad patch with no signs of things getting any better in the foreseeable future, we suddenly realised that Mr. Mahajan’s Jam-boree model made enormous business sense.

We did a quick back-of-a-paper-napkin calculation that evoked some very interesting possibilities. In a place like Delhi where the live music scene and gigging circuits are almost non-existent, a concept like Jam-boree is sure to attract music-lovers in droves. Charging an entry fee of Rs. 200 would be very reasonable. After all, these folks are used to paying cover charges of 600 bucks and more, and paying 150 bucks for tickets at multiplexes.

Now with a crowd capacity of 100 people (not difficult, since Mahajan is already doing private exclusive events that end up attracting 50 people or more), the takings for a single Jam-boree session would be Rs. 20,000. If the Jam-boree were to be held once a week (Saturday nights, just like they happen now at Mr. Mahajan’s studio), the monthly sales would be Rs. 80,000. Now if one were to do deals with the sound and light guys, and manage the rest of the finances carefully, one could easily restrict monthly payouts to a total amount of Rs. 30,000. That means a monthly revenue of Rs.50,000. When you annualise that figure, it adds up to Rs. 600,000 per annum.

Now think about this for a moment. Most music labels don’t manage to generate that kind of money from their artistes. Yes, you have the biggies who bring in the big bucks, but by and large the music business is in the boondocks today because revenue streams are drying up. With the Jam-boree model, they could well end up with a healthier bottom-line.

The possibilities are very exciting…

Advertisements

Leave a Comment so far
Leave a comment



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: