The Value Engineers

Roel's keynote about value creation with digital ecosystems given on the 3rd of October at the Digital Architecture Design Day (DADD24) is available here: https://lnkd.in/ezwu_K3U #businessecosystems #businessmodels #digitalecosystems #governance #dadd24 dr. Peter Beijer Austin Dsouza, PhD Frank Stiksma Timber Haaker Albert Wijbenga Koen Hendriks Huub Bakker Wouter Paul Trienekens Chad Knowler Oscar Pastor Steve Liddle Pieter De Leenheer Nedo Alexander Bartels Karina Villela Matthias Koch Jaap Gordijn

To understand music royalties, you need a lawyer trained in IP law. The first thing a band should do before they start performing, the IP lawyer Donald Passman says, is hire an IP lawyer. And he is right! (I am not an IP laywer.) In this blog I explain the cash flows in the music ecosystem as simple as possible, to give you a first impression, without needing help from anyone else, let alone from a laywer. This is the sixth and final in a series of blogs about the music industry. #music #royalties #businessmodels https://lnkd.in/eaKdQ65G

It's a red ocean in the music industry. While music streaming providers are squeezed by the major record companies, the majors themselves are under threat of two megalodons: YouTube and TikTok, who experience exponential platform economics. #music #streaming #recordcompanies #platformeconomy https://lnkd.in/ea9pDxVv

The major record companies extract so much value from music streaming providers that they fail to be profitable. Read here how this works. #music #royalties #businessmodel #valueextraction #musicstreaming #streaming https://lnkd.in/eicjUQK2

Record companies have a powerful position with respect to artists, which they exploit in full. #music #businessmodel #recordingcontract #chokepointcapitalism https://lnkd.in/emW_itGp

Are music streaming payment models unfair? What does that mean and can we fix it?

Musicians complain that current payment models for music streaming are unfair, because subscription fees are used to pay musicians that a user never listened to. This blog shows that music streaming should be viewed as infrastructure with a base fee for access and a variable fee for usage. #musicstreaming #prorata #usercentric #artistcentric #streaming #businessmodel #revenuemodel https://lnkd.in/eVFTKCne

🚀 Exciting News! Join us for our upcoming #expert session on May 14th in Amsterdam, where we will dive deep into the world of #blockchain, #engagement, and #loyalty #programs. 🎉 This event is not only a networking opportunity but also a celebration of the recent publication of our whitepaper and toolkit by the 2Tokens Empowering Communities working group. 🔗 We will unite approximately 20 professionals—including experts, entrepreneurs, and enthusiasts from various industries—who share a passion for engaging communities. Learn more via https://lnkd.in/eteWsRqa. Let's explore the future of community engagement together! #Blockchain #LoyaltyPrograms #CommunityBuilding #NetworkingEvent #AmsterdamEvents

Last year, Uber made a profit for the first time in its existence. Is it now beyond its tipping point? Can shareholders relax and expect a yearly profit from now on? Not really. To see why, look at the ride hailing ecosystem. All ride hailing apps offer the same service: Matching riders who need a trip with riders who have a car. There is no unique selling point that differentiates the apps. Customer captivity on both sides of the platform is low, and customer loyalty is low too. Riders and drivers can use any number of these apps at the same time and tend to cycle through them if they cannot find a ride. Making the competitive situation worse, transporting is a physical location-bound service. Matching a rider with a driver is a connection service, but Uber did not disrupt the telecom business. It disrupted the taxi business. And taxi business is local. Outcompeting taxi drivers in one city does not help Uber in another city. Uber has to face competitors in every of the 10000 cities where it operates. Winning in one city does not give it a competitive advantage in any other city. The physical nature of taxi services also implies that there is a maximum size of Uber’s value network. At some point, adding more drivers in a city does not significantly reduce the waiting time for riders. Positive network effects are limited by the size of a city. All of this explains why Uber’s cost of revenue is so high: 60% and rising. It may very well still be losing money in many cities, trying to drive competitors out of the market with low prices. But what explains its 2023 profit? One, it charges riders what its algorithms estimate the rider will pay without declining to take the ride. This is algorithmic price discrimination. Two, it gives drivers what its algorithms estimate the driver will still accept without declining to provide the ride. This is algorithmic wage discrimination. One could see this as personalization, an application of machine learning on the mountains of data that Uber has about riders and drivers.  The AI regulation may have missed it, but this is an application of machine learning that should be regulated away. One way to heal the ride hailing ecosystem is to force Uber and other ride hailing app providers to be more transparent in their reporting. How many rides did the provider provide in each city? What was the average price and driver pay per trip? What is the distribution of take rates? Not only investors need to know, the public needs to know as well. Want to know more about ecosystem strategy? Read our book “Digital Business Ecosystems. How to Create, Deliver, and Capture Value in Business Networks”, available at https://lnkd.in/ewhj_UM7. #platformeconomy #ecosystemstrategy #competitivestrategy #ridehailing  

Today's teenagers do not seem to care about their privacy online. They are careless about their autonomy and naive about moral ambiguity. #surveillance #profiling #targetedadvertising #autonomy #privacy https://lnkd.in/eU9g8H2w