Mad About Music


Jam-boree: A Business Plan
October 15, 2008, 5:54 pm
Filed under: Music | Tags: , , , , , , , , , , , ,

It looks like the live music scene in New Delhi (India) is all set to go places like never before. Those of you who have read the comment posted by Mr. Ajay Mahajan in response to my earlier post will know that the highly innovative, very exciting live event known as Jam-boree is all set to produce it’s first music video! I have already mentioned earlier that Jam-boree could emerge as a successful television programme in the near future… now it looks like Mr. Mahajan is taking the first step in that very direction.

Personally, as an avid music industry watcher, I see huge business potential in the concept of Jam-boree. I have said this before, and I’ll say it again. It could well be the next level of music promotion that the currently beleaguered music business is searching so desperately for.

Here are the basic nuts ‘n’ bolts of what I envisage the Jam-boree Business Plan to be.

I see Jam-boree as a very special, intimate, small-format live music event, the complete antithesis of the stadium concert. Jam-boree is all about being seated just a few feet away from the performers, talking to them, interacting with them… getting closer to them, and their music. For the artistes, in turn, it is a more powerful promotional channel than the huge impersonal gigs they play across concert halls, stadiums, smoky pubs, etc.

The revenue model would be a two-pronged one — the first, a nominal entry fee or cover charge (depending on the venue); and the second, sponsorships and advertising at the venue in terms of backdrop, stage, signage material, promo offers, etc. With the growing importance of marketing to the youth, Jam-boree presents a unique format for engaging young audiences, and I see the Cokes, Pepsis, Reeboks, Dominos, Levis, et al showing enormous interest in getting involved in such opportunities.

Promoting the event will also be quite easy. A section of the audience will include invitees from the press (for publicity) and corporate big wigs (for sponsorships). The rest will follow.

The difficult part, as I see it, would be to build up a roster of talented performers. But Mr. Mahajan has a distinct edge here. You see, since I know Sanjo from a not-so-distant past, I know that he mentors a lot of musical talent. With Sanjo on the Jam-boree team, building a pipeline of musical talent does not seem all that daunting.

If you’d like to get in on a piece of the Jam-boree marketing/brand promotion action, you can contact me through the Comments section of this blog, or write to me at sarveshsharma@excite.com

And yes… keep reading this blog for more updates.

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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…