COMPARATIVE ANALYSIS OF BUSINESS MODEL INNOVATION IN INDONESIAN RECORDS LABEL, CASE: TRINITY OPTIMA PRODUCTION AND MUSIC FACTORY INDONESIA

• Main Author: Mayola, Shavira
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78763
• Institution: Institut Teknologi Bandung

In the past few years, records label was facing changes in the music industry that includes opportunities and threat. The opportunities are the rise of digital music that brings out several new product formats, also the partnership with partners to create new platform. Records label also faced the piracy issue as the main threat, which caused great loses to their profit. Therefore, records label, especially in Indonesia, needs innovation in their business model to overcome those changes in music industry structure. This research used the qualitative data research method by using semi-structured interview, observation and secondary data. The respondents in the interview were the person who directly involved in Indonesian music industry and felt to have had experience in its development. In this case, respondents were the member of Trinity Optima Production and Music Factory Indonesia, especially the business development and digital team of the company. The research was conducted to study the current state of business model, includes its innovation process and results in both companies, as the example of Indonesian records label. This research revealed the business model canvas, the innovation process and the result of business model innovation implementation. The innovation process shows that both company have initial and existing innovation that have different phases. But both company was succeed in the implementation of the business model innovation as shown from the well-turned result that is measured from the sales unit, margin, and complexity of innovation. By the result of this research, Trinity Optima Production and Music Factory Indonesia is suggested to have a deep understanding of their business model and make a mapping for the company potential, capability, resources, and potential network or partner with also evaluate the readiness of their target market to accept the innovation. For further improvement, records label in Indonesia suggested to apply the 360 degrees business model to overcome the piracy issue and the rise of the digital era. In addition, records label are also forced to be adaptive to changes and communicate with the current and potential key partners to create innovations. For the distributors in general, they should adapt and apply the super-distribution strategy in their business model to gain maximum benefit, aside from performing their duties as CD or other conventional product distributors. Distributors should also be able to expand their distribution channel in form of digital sales or innovation.