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DJ Radio provides LIVE Session broadcasting that allows DJ`s fans to listen, locate and view their favorite sessions world wide. 1

OEP DJ Radio

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Opportunity Execution Project

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Page 1: OEP DJ Radio

DJ Radio provides

LIVE Session broadcasting that allows DJ`s fans to listen, locate and view their favorite sessions world wide.

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Page 2: OEP DJ Radio

Sign up DJ Radio http://djlivebroadcasting.weebly.com./

• Try DJ Radio to serve live broadcasting DJ sessions Worldwide!

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Page 3: OEP DJ Radio

Our TEAM is spanish - ukrainianWe found each other right here on the Course!

I’m Andriy from Kyiv, UkraineBusiness Development. IT and software industry, full cycle of product developmentua.linkedin.com/in/galych

I’m Luis from Santander, SpaneIndustrial Engineer focused on customer relationship & business managementes.linkedin.com/in/luis4lonso/en

I’m Jorge from Ibiza, SpaneCreative entrepreneur. Good in Strategic Planning, Branding and New Advertising.Focus on electronic music, clubbing, spirits and nightlife.es.linkedin.com/in/jorgevallet/en

I’m Ismael from Santander, SpaneIndustrial Engineer focused on commercial management. Good technical backgroundes.linkedin.com/in/ismaeldiezleadership/en

I’m Iryna from Kyiv, UkraineProject manager in advertising and web software development. ua.linkedin.com/in/irynasolovyova/

I’m Luis from Santander, SpaneProject management & business developmentes.linkedin.com/pub/luis-martin-de-francisco/29/762/1bb

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Page 4: OEP DJ Radio

Model Canvas: http://venture-lab.org/venture/team_ideas/6825

Page 5: OEP DJ Radio

Marketing

Electronic dance music market, better known as EDM market, is new growing market of music which created by DJs – new music producers.

We estimate available market in 70 millions of potential customers. Served available market is about 20% of this number – 14 million.

These people are active Internet and Facebook users, so we expect to reach and engage at least 10% of served available market using such tools like Facebook and Twitter advertising, Google AdWords and SEO and affiliate program.

We plan to reach this goal in a few years with average cost of user acquisition less than $3.

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Page 6: OEP DJ Radio

Sales

We plan to use web site and social networks like Facebook and Twitter as the sales channels.

Our business model base on annual subscription that will cost $5 for user. This price is supported by our communication with potential customers.

To promote our service we plan to propose new customers free one-month subscription that will give them access to full functionality.

Based on the assumption that our market share will be at least 10% of total served market 15M of potential users with price of yearly subscription $5 the annual revenue of DJ Radio can reach more than $7 millions.

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Page 7: OEP DJ Radio

PartnershipsWe would recommend a partnership with two key websites:

1) ResidentAdvisor.com and 2) SoundCloud.com

The first one give us reputation, and the second one because it’s similarity with the project.

We are also looking for a partnership with Beatport.com because it’s a platform that people pays to get it’s content (music) so people is ready to pay for music sessions in this platform. It can work as an affiliate.

It’s also a plus to have TRAKTOR Software as partnership, because it’s one of the biggest and more used DJ software, and it can the tool who captures the music session to stream it, so don’t need to create another software.

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Page 8: OEP DJ Radio

Distribution

DJ Radio business model based on subscription to broadcast service fans of electronic dance music who will pay for subscription on live session their favorite DJs. We plan to pay assessments to DJs for the broadcasting of their session. Thereby DJs are our nature partners in promotion DJ Radio within their fans. We plan to use DJs social network accounts, such as Facebook and Twitter as the distribution channels to promoute and sell our service.

We estimate that we can get 70% of users for DJ Radio through direct promotion by DJs.

So as we plan to take 10% of total served market, which we estimate in about 15M users, the total number of users that we expect from DJs users is 750K. We plan to work with DJs directly and propose them 25% assessments of subscription of our service the cost acquisition of user will be $1,25. 4.4

Page 9: OEP DJ Radio

Costs

The first past of cost of DJ Radio project will be a software development. We need to develop front-end and back-end part of on-line broadcasting service and integrate it with specialized DJ software such as Traktor Pro, Virtual DJ, DJ Music Mixer and others. We estimate that development part of first web-service version will cost about $100K and integration with every one DJ software tool will take about $20K. We plan to use Amazon Web Services as the cloud for our project hosting. It allows us to scale our project effectively and spend money in accordance with users quantity.

We plan that initial team for first year will include CEO ($150K salary per year), CTO ($120K), marketing manager ($80K). For development we plan to engage outsourcing development company. And we plan to spend about $70K on marketing activity in first year and sales channels building sales channels.

So we plan expenses for the first year will take about $600K.4.5

Page 10: OEP DJ Radio

Revenue Model

We plan to have a freemium revenue model.

After offering one month trial period, we plan to charge one time payment of 5$ per user.

We will have some affiliates, as Beatport.com, who could sell them too the service of DJ Radio.

Since one of the biggest value int he project is real time and live session, nevertheless we can think in the future to sell past sessions for few cents.

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Page 11: OEP DJ Radio

Risk

We identify 4 main risks for our project:

Market risk: we plan to minimize this risk with tight communication with our customers and clear understanding of their needs.

Competitive Risks: we plan to cope with this risk by develop our service fast and promote it actively.

Technology and operational risks broadly cover everything having to do with execution. With this risk we plan to cope using such reliable platform as Amazon Web Services.

Financial Risks: the one of our main goal on the first stage will be to find reliable investors that will be interested in our project. We also hope that our service will grow fast and start to generate revenue quickly.

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Page 12: OEP DJ Radio

Partner & Allies

We need to partner with Clubs & Club’s Owners to be allowedto record and stream from inside their clubs.

Also we need support and authorization from the DJ’s whowill be playing the live session.

We can’t forget Records Labels, which are the companies whorepresent DJ’s interests and make profit of them.

We found interesting too, to have the beta platform www.twitter.dj as an allie, because it can spread the word among DJ’s quickly.

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Page 13: OEP DJ Radio

Funding

Our project is concentrated on new, growing market electronic dance music. Before it becomes profitable we need to get fund to cover our costs on software development and initial promotion. For the first year of start we need $600K.We plan to look for angel investments to gather this sum.Besides money we expect from business angels knowledge and expertise to help us to develop our project – other words we plan to engage “smart money”.Our team will take active participation in different kind of events, where we will meet venture investors and business angels.We also plan to make campaign and look for funds on such web-platforms like TheStartupAngels, VentureGiant, LinkedIn etc.

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