Musicjuice.Net

Case Discussion: MusicJuice.Net

MusicJuice.net is a new website that created a platform for bringing musicians and fans together and raising crowd-source funding on the purpose of financing new musicians through fans. Now it is operating in losing money month after month and its business model will be shaped by some key issues. The four key issues as follows:

1. Trouble with revenue stream: The MusicJuice.net was failed to reach the fundraising goal and premium member sales that netted no revenue. In addition, it only has low revenue from Google Ads and bank interest so that revenue stream is not valuable for the company.

2. Lack of interest in the website: The MusicJuice.net was failed to make good development in website that site is boring with no more activities to do; musicians are unknown and security problem in payment.

3. Stiff competition in the crowd-sourcing for musicians industry: Sellaband.com and Slicethepie.com worked on a very similar business model with MusicJuice.net and both of them are more successful and popular than MusicJuice.net.

4. Deteriorating relationship with two founders: Liu and Wong have different knowledge background and they couldn’t communicate well with each other and understand why website with such issues so that they don’t enjoy the ride together.

Considering these key issues, the following preliminary recommendations can be made:

1. Build additional revenue streams into the website: MusicJuice.net would need to place new viable revenue models such as creating affiliate text links to CDs only on Amazon that is every record CD on website should be with a link to that CD on Amazon with customer’s affiliate ID attached. MusicJuice.net forms a partnership with Amazon and get percentage share of the profit in sales of CDs with Amazon. In addition, the company can set VIP membership $15 per month that every member can listen to any record CDs online with free and get one free ticket for live event...