Mouzon,+C+Blog+Post+Analysis

Mouzon, C.

**TO:** Proximity Music Consult Group
 * FROM:** Carl Mouzon
 * SUBJECT:** Gigaom article on KKBOX
 * DATE:** Jan 31, 2010

We were asked to review a news item for Proximity’s fall survey. This is my summary on the Gigaom artcle, “KKBOX: A Freemium Music Model That’s Actually Profitable”. I believe this article should be used in determining what survey questions to ask focus groups this year concerning their music choices. **
 * Below is a quick revision of the topics you had in the original. Note what I did - organize all the the basic information about KKBOX into two paragraphs under one topic heading and then use a simple two sentence paragraph under a separate topic heading to explain the relevance. I could do more to polish these paragraphs, but I think you can now see what I was marking with the PG label.

The KKBOX fremium model ** KKBOX, a Taipei based company, streams a mix of independent Asian labels and artists with a limited amount of western music. It uses a freemium business model where ‘active’ members pay a premium to get full downloads while free members use a limited version of the service. KKBOX converts free members into paying members at a rate 3.3% higher than most other freemium models.

By targeting a niche Chinese language market with this freemium model, KKBOX generates profits where other freemium models have not been able to do so. It will soon expand into Malaysia, Singapore and will also target Chinese-speaking people worldwide. In November 2009, KKBOX signed deal with Apple to offer its services on the iPhone. It expects that a majority of iPhone listeners will be paying subscribers.

KKBOX’s success is important because it demonstrates that freemium models for delivering online music can work with niche demographics. Proximity clients who wish to use music to band their products or target Gen-Y should recognize the value of this strategy and the potential for using pop western music to reach both domestic and global markets.
 * KKBOX’s Relevance **

** Questions for Group ** In order to help our clients we should be aware of how most Towson students come to possess their music and what devices they are played on. Questions that should be asked are the following: Resource: Bananos, B. (2010, January 29). "KKBOX: A Freemium Music Model That’s Actually Profitable." []
 * How do you download music?
 * Do you subscribe to any music sharing providers, such as ITunes, Rhaspody, Limewire, etc.?
 * Do you pay a fee of any sort for having music providers on other electronic devices?
 * Do you speak any other languages?
 * Can you download music in other languages or from artist from non-Western countries as easy as you can music that is in English or from Western countries?
 * Would you be willing to pay for music in other languages (if English isn’t your first language)