Live x Live Media Case Study (2017)

Summary

LivexLive Media is a music and media platform that streams and distributes music-related content online. LivexLive streams a variety of music genres including pop, hip-hop, EDM/Dance, rock, metal, and country. They specialize in the streaming of live music from festivals, venues, and clubs. The purpose of the company is to connect its users to live performances that are happening in real time and provide a community for music lovers all over the world. After each live performance, LiveXLive archives the performance to their website, so if a performance is missed the user can simply go to LiveXLive’s website and view the show at their convenience. 

In addition, LivexLive has also implemented an “Influencer Division” as a part of their company, which is a digital talent team that is composed of highly influential individuals in the music community, as well as social media. LiveXLive Influencers support the company’s mission to create a community that surrounds the best in live music. These influencers will primarily focus on the music streaming network, and new music programming, which will include specials, documentaries, and long- and short-form content that will complement its livestreams of music’s biggest festivals and music experiences from around the world. (James Lefkowitz, 2017). Additionally, LiveXLive Media’s businesses also include event marketing, an acquired ticketing platform- Wantickets, streaming music service Slacker Radio, and video-centric social media app company Snap Interactive. (LivexLive, 2017). LivexLive’s CEO is Robert S. Ellin, and their headquarters are in located in Beverly Hills, California, where the company was founded in 2009. Since its launch in 2015, LivexLive has been providing an online destination for music fans to enjoy premium live performances from music venues and festivals around the world.

The Customer 

With the variety of music content that LivexLive streams, their customer range is quite diverse. Although they are reaching many different customers, the main focus is on the age groups surrounding teens, millennials, and music festival attendees. Specifically, ages 18 to 35 years old is the target market within these groups.

These specific audiences are the ones who are inclined to have access and fluency with online interfaces. Technology literacy is an important part of how LivexLive’s market segment is defined because the way consumers access the company is through technological devices. To use those devices requires knowledge of how to use the device, the internet, and how to navigate their website. 

Furthermore, The Influencer Division is an important aspect of this consumer market. The Influence Division is specifically made up of rising social media stars, whose online presences are well known, indicated by having more than 10 million followers. When these social media stars advertise and promote LivexLive, they are directly exposing the brand to the target customer, since the users who follow the starsare the same audience that LivexLive is targeting.

Figure 1: Millennials and Music Streaming (The Nielsen Company, 2015) 

What they do for the customer 

LivexLive connects the customer to live music, from anywhere around the globe. The company provides a specific, and easily accessible channel on which the user can view live music from their favorite artists. Through LivexLive’s website, they provide a calendar for their customers that showcase upcoming performances and events, which makes it easy for the customer to know what shows will stream at what time. Essentially, the company allows the customer to access their favorite artists and shows to experience the music, from anywhere around the globe.

How the customer acquires the product 

In order for the customer to access this product, they must go to the LivexLive website (https://www.livexlive.com/). The website is completely free to use and is updated frequently to ensure the most up-to-date information from the music industry. From there, the user can navigate the website and find which shows they want to view by filtering by genre or browsing the home screen. When the customer first enters the site, they are presented with the home screen, along with the option to sign up, or log into an existing account. There is also a drop-down menu on the top-right hand of the screen that organizes the website by the home page, genres, calendar, the shop, and a general information page that gives a brief overview of the website. All of LivexLive’s social media handles are also accessible through their website, as well as their collection of performances.

Figure 2: LivexLive Home Page (https://www.livexlive.com/, LivexLive Inc., 2024)

How they make money off their product 

LivexLive uses the affiliate business model to make money. They also use the net proceeds from their working capital, capital expenditures, and the acquisition of Slacker to make money (LiveXLive Media, Inc. 2017). Through the affiliate business model, every viewer gets to watch the shows they broadcast/stream, and they get a percentage of sales from that. So when the affiliate puts their ad on LivexLive’s website, the customer clicks/traffic for the website ad are tracked, and then those clicks are converted into commission for LivexLive. In other words, when the viewers tune into the website to watch content, they are exposed to advertisements. These advertisements come from third-party companies, who paid to have their ads streamed during the show, and that money goes to LivexLive. This company also has its own LivexLive merchandise, with brand extensions featuring some of its previously streamed artists. Each sale they make from their merchandise also goes towards their revenue. Again, their Influence Division plays a major role in helping advertise this brand and get more exposure to the company.

According to research, the average revenue for music streaming in North America was $8368 million in 2017. Adding on, the average number of music streaming users in 2017 was 1998.8 million (Statista, September 2017). Studies show that the number of users is expected to increase to 1,399.0m by 2022 in this market.

Figure 3: Expected user growth for music streaming (Statista, 2017) 

How the product is designed 

The “product” (more of a service) is designed based on connections and networking through music production companies. When a musical performance is going to take place, LivexLive arranges for their company to have access to the cameras recording that show, and have it streamed to their website. From there, all the user has to do is long on to LivexLive’s website to view the desired show. This is how LivexLive distributes musical performances to other audiences that aren't at the event. When the audience is viewing the show, LivexLive generates revenue for each viewer. Through the previously mentioned, the advertisements that get exposure by being featured in these streaming of live performances, results in LivexLive generating more revenue.

Team

  • Robert S. Ellin- Chairman and CEO 

    Ellin has had twenty years of investment experience. He is also the founder and President of Atlantis Equities Inc., a private investment company. Ellin has also played an active role in investee companies including board representation, and corporate finance. He spearheaded investments in Mandalay Digital (MNDL), Majesco Entertainment, ThQ, Inc., and other digital media companies. (LiveXLive Media, Inc. 2017) 

  • Schuyler Hoversten- Chief Revenue Officer 

    Before LiveXLive, Schuyler was the co-owner and team president of the LA KISS pro arena football team. He supervised all aspects of the business including sponsorship, ticketing, and merchandise revenues. Additionally, he has managed the team’s brand identity, their marketing, and game day entertainment events that have included working 

    with other musical talents and operations. (LiveXLive Media, Inc. 2017)

  • Russ Gilbert- Chief Digital Officer 

    Gilbert has had 20 years of media and technology experience, which includes knowledge on a variety of digital media channels. His experience spans across radio, television, film, and print. (LiveXLive Media, Inc. 2017) 

  • Devin Dehaven- Head of Production 

    Devin is a veteran, award winning television producer and director specializing in large-scale music festival broadcasts. His major events include Rock in Rio, Hangout Music Festival, Outside Lands, Jazzfest, Zac Brown’s Southern Ground and Stagecoach. He has also produced and directed hundreds of live and taped concerts. (LiveXLive Media, Inc. 2017) 

Key Risks 

  • Not enough web traffic could result in a loss of investment. The Influencer Division is made up of highly qualified individuals, but as their reputations and the way they portray themselves change, so does the way the brand LivexLive is perceived. This could affect how consumers see the brand. There is risk with the influencers and their reputations changing over time, into either a positive or negative image. How these influencers evolve is a risk factor in whether the investment money will be successful.

  • Loss of access to music platforms is another risk associated with investment of this company. As more music events, such as festivals and artist emerge, the more music label companies and musical event organizations will want to sign them and/or include them to their company. Some of these companies may prevent a third party (like LivexLive) from streaming their artist or music event since they own it. This lack and loss of content could have a significant impact on the company’s operations.

  • Unsuccessful expansion of the target market is another key risk. If the company is not able to expand the variety of music that is streamed or adapt to what its current consumer market wants, then they could end up losing out on invested money.

Recommendation 

  • It is recommended to invest in this company. With this company having a target market for the up-and-coming generation of millennials, the market will likely grow and become much more successful. The customers who use and enjoy this product will then share it and give the company more exposure, resulting in a growth of customers reached. With a larger audience attracted to these live music experiences online, the more the affiliate business plan will work in the favor of the investor. Additionally, the Influencer Division members are continuing to grow and use their presence across social media to promote this company. This will guarantee attention and exposure for the company, and help it grow at a exponential rate.

Works Cited (MLA)  

  • “LiveXLive Launches Influencer Division With Amanda Cerny, King Bach, Jake Paul, And Others.” Live X Live, 7 Sept. 2017, www.livexlive.com/press-release/livexlive-launches-influencer-division-with-amanda-cer ny-king-bach-jake-paul-and-others/. 

  • Pardon Our Interruption, www.crunchbase.com/organization/livexlive. 

  • Farrington, Robert, and About Robert FarringtonRobert Farrington is the founder and editor of The College Investor, a personal finance site dedicated to young adult and college student finances.

  • “Music Streaming - Worldwide | Statista Market Forecast.” Statista, www.statista.com/outlook/209/100/music-streaming/worldwide#market-users. 

  • “The Millennial Age Range And What Does That Mean Financially.” The College Investor, 14 Oct. 2017, 

    thecollegeinvestor.com/19793/millennial-age-range/. 

  • “LiveXLive Media Launches Public Offering.” CNBC, CNBC, 9 Oct. 2017, www.cnbc.com/2017/10/09/pr-newswire-livexlive-media-launches-public-offering.html. 

  • “LiveXLive Media Inc: Company Profile - Bloomberg.” Bloomberg.com, Bloomberg, www.bloomberg.com/profiles/companies/LIVX:US-livexlive-media-inc. 

  • Freeman, Mike. “Slacker Radio Agrees to Be Acquired by LiveXLive for $50 Million.” Los Angeles Times, Los Angeles Times, 18 Sept. 2017,  www.latimes.com/business/la-fi-slacker-radio-livexlive-20170918-story.html

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