For all entertainment productions, we extremely reduce development cost, staff resources and development-term to obtain customized BGM with high satisfaction for the qualities.
Current Status
Developing MVP part-time.
Looking for investors who help us found our startup company in the U.S. and move from Japan to around Silicon Valley.
Market
*Target Market:
- Game Production
- TV & Commercial Production
- Film Production
(After all the above, we aim Song Production, too.)
*Market Validation: Numbers of releases in 2018 worldwide
- Mobile Game: 228,641 (Google Play 200K + Apple App 28.6K)
- Other Games: 14,119 (PC, Console, Social Network)
- TV Drama: 928 (Commercial is unknown)
- Film: 4,218
*Market Size:
- Conservatively $1B worldwide
- $500M U.S. alone
(According to Production Music Association’s study in Sep 2017, worldwide number is quantified conservatively. It should be $2B.)
Problem or Opportunity
To obtain highly satisfied customized-BGM, "large amounts" below are required on entertainment productions.
- Cost
- Human Resources
- Long-Term
The following are the essential problems.
*Production Side Problems: NOT EASY for productions to
1. Find a perfect composer for each project.
2. Make sure a composer has necessary skills from their demos.
3. Describe musical requirements to a composer.
*Composer Side Problems: Human composers have limits of
4. Breadths of music genres to work on.
5. Physical working speed.
Solution (product or service)
Our AI solves all the essential problems. Therefore, the "large amounts" turns into "reasonable amount".
The following are details of each solution.
*Production Side Solutions:
1. No need to find individually. Our AI works versatilely.
2. No need to make sure. Our AI always 100% ensures veteran qualities.
3. Describe your requirements easily with ordinary words and/or with human composers’ names.
*Composer Side Solutions:
4. Our AI can cover most music genres plus expand the coverage day by day.
5. Everything is done in an instant.
Competitors
*Human Composer: 100% share
*AIVA: Unknown (must be 0% share)
*amper: Unknown (must be 0% share)
Regarding amper.
“amper” can’t be an actual competitor. Because it is essentially “Automatic Audio Phrase Combiner” that doesn’t have flexibility of composer to create music from scratch.
"Source (in Japanese): Is amper a straight AI composer?"
https://www.dtmstation.com/archives/51993011.html
Advantages or differentiators
*Selling Product:
- Our Service: Finished music. (ready to use immediately)
- AIVA: Music materials. (required to finish by human)
*Working Speed:
- Our Service: Everything is done in an instant
(e.g. Customers can create and/or update music entirely or partially)
- Human Composer: Human takes several days for the same jobs.
*Coverage of Music Genre:
- Our Service: Broad genre by contemporary music basis.
- AIVA: Narrow genre by classic music basis.
- Human: A human composer can't cover enough broad genre alone.
Finance
*Current Plan #1:
(Service Conditions for Game)
- $300 per min (Easygoing price with stable veteran quality)
- Simple Structure (No changing tempo, mood and arranging-style in a music piece)
- Full Buyout including copyright
*Current Plan #2:
(Service Conditions for Film)
- $500 per min (Easygoing price as movie BGM with stable veteran quality)
- Complex Structure (Possible to change tempo, mood and arranging-style in a music piece)
- Licensing only (Copyright is not for sale to gain secondary revenue)
*Basic Knowledge: Common Music Production Cost for Game
(US: Unit = per min)
- Starting Off Career: $200
- Industry Veteran: $2,500
(JPN: Unit = per music piece)
- Starting Off Career: $500
- Industry Veteran: $1,500
Business model
*Business Model #1: Game
Revenue per month: $594,000 (with 5% of the market approx)
(Calculation Basis)
- Revenue per Game(Mobile):
$600 = $300 (unit price per min) x 1 min (one piece length) x 2 pieces
- Revenue per day:
$19,800 = $600 (revenue per game) x 33 games (5% of daily game releases)
- Revenue per Month:
$594,000 = $19,800 (revenue per day) x 30 days
*Business Model #2: Film
Revenue per month: $63,750 (with 5% of the market approx)
(Calculation Basis)
- Music Production Revenue per month:
$13,750 = $500 (unit price per min) x 55 mins (total soundtrack length) x 0.5 movies (5% of monthly movie releases)
- Secondary Revenue (Soundtrack Sales) per month:
$50,000 = $10 (unit price of soundtrack) x 10,000 times (DL or CD per movie) x 0.5 movies (5% of monthly movie releases)
- Revenue per Month:
$63,750 = $13,750 (production revenue per month) + $50,000 (secondary revenue per month)
Money will be spent on
*Founding our startup company in the U.S.
*Developing full-time and launching MVP (estimated for 2 years in the smoothest case)
*Moving from Japan to around SV including VISA (E2) issues
*Renting co-working Space
*Hiring an additional engineer from 13th month
*Hiring a business manager from 16th month
*Outsourcing (Building Arranging Music Style Database for MVP)
*Purchasing some equipment (like MacPro 2019 specialized for music production)
None.
We have been working by ourselves until now.
Invention/Patent
Just for reference, I innovated the following patents which are not for this project but in the related fields. Still these are much less than technologies we have been inventing and developing on this project.
