download
download
X-twitter Instagram Tiktok Discord

Change the business model, change the industry

2.5 min read / Author

Instead of starting with the business model, let’s analyze music today, in general.

Here are a couple of facts:

Average streaming revenues have halved during the past 10 years and now sitting at $0.003 average per stream. This is true from Spotify to “Artist-friendly” platforms like Tidal.

Touring has been strangled with monopoly control restricting musicians’ bulk of revenue.

If musicians cant afford to make music, they will not make it. This will happen, at least for streaming, due to a broken business model. My pitch here is to change of mechanism.

Business models of Spotify are failing because people hold little value to gate-kept digital files online. This is because they are not scarce. We don’t know what the musician is actually getting, and the server costs don’t seem to justify the monthly subscription. This is also emphasized by Spotify’s growing ad-revenue over the same time period, as nothing is more scarce than human attention:

That’s the status quo. You can argue that Gen-AI will make infinite music that we will love, or that Spotify will recover, but these are all hypotheticals, potential futures. My own hypothetical is that neither of these things will fix the music industry, and we need to change course, at least partially. Future doesn’t typically happen in a binary fashion, but rather probabilistic. It didn’t happen enough for it to happen, or it happened part way. This is fine, I think, for example, a digital record collection is not mutually exclusive to virtual concerts.

DigitRaver borrows it’s business model from MMOs. Free to listen, but you can enhance your experience through virtual goods. These are like drinks at a club that does rev-share with a musician. In How much can you make I cover that this model works well at about $0.15 per user/hour, generating $4.4 billion in revenue for Fortnite from virtual goods alone last year. The reason that Fortnite itself can’t eat our lunch is that DigitRaver is a music platform first, game world afterward. Fortnite is the inverse, and thus can’t scale as much as DigitRaver, which currently can run 200-400 simultaneous users in a room. While Fortnite also has concerts, it’s only for players that are already big, and involve a lot of expensive 3D production. DigitRaver is the YouTube of open worlds, which is another scaling advantage. An internet business is a volume business, DigitRaver can accommodate over 3,220 unique mobile devices, with global servers.

DigitRaver is also set to help not just musicians but the venues they play in. Why get paid only for headcount when you can monetize on the entire world? We have many customization options now and will only increase as we grow. Why keep your revenue confined to a physical location? Go global by going online with DigitRaver, make more money and expand your brand!

The reason that “make the world a better place” became a farce because intentions aren’t very good in shaping behaviour. Incentives are, and with a different business model, you can expect different results with confidence. But DigitRaver’s codebase won’t jump out of the screen to change the industry, we can only do it together. Join Today!

back

Apply!

Are you a musician?
Sign up here to play!

By signing up, you agree to our Privacy Policy*.

OUT NOW!

app-storeSmall

Massive 250+ user rooms

0.5 min read / Author

Using novel optimization techniques DigitRaver is able to handle over 5X concurrent single server traffic what most open world platforms can offer, with theoretical infinite capacity via server instancing.

DigitRaver is a breakthrough that can do this on a mid-range phone.

 

 

Rough calculation shows

0.5 min read / Author

To provide a more balanced and realistic estimate, let’s re-evaluate the revenue sources, considering that Super Chats and Super Stickers typically generate significant revenue, but not to the extent of overshadowing CPM and memberships by several orders of magnitude.

Revenue Sources and Assumptions 

  1. Ad Revenue (CPM)
  2. Super Chats and Super Stickers
  3. Channel Memberships

Detailed Breakdown 

Ad Revenue (CPM) 

Assume an average CPM of $2.50:

  • With 40,000 concurrent viewers, assume each viewer watches 5 ads per hour.
  • Total Ad Impressions per hour: 40,000 viewers * 5 = 200,000 impressions.
  • Total Ad Revenue: 200,000 impressions / 1,000 * $2.50 = $500 per hour.
  • After YouTube’s 45% cut: $500 * 0.55 = $275 per hour.

Super Chats and Super Stickers 

Based on a more moderate engagement rate:

  • Assume 0.5% of viewers (200 viewers) donate via Super Chats or Super Stickers.
  • Average donation: $3.
  • Total Donations: 200 viewers * $3 = $600 per hour.
  • After YouTube’s 30% cut: $600 * 0.70 = $420 per hour.

Channel Memberships 

  • Assume 1% of viewers are members (400 members).
  • Monthly membership fee: $4.99.
  • Monthly Revenue: 400 members * $4.99 = $1,996.
  • Daily Revenue: $1,996 / 30 ≈ $66.53.
  • Hourly Revenue: $66.53 / 24 ≈ $2.77.
  • After YouTube’s 30% cut: $2.77 * 0.70 = $1.94 per hour.

Total Estimated Revenue per Hour 

  • Ad Revenue: $275
  • Super Chats and Super Stickers: $420
  • Channel Memberships: $1.94

Total Revenue per Hour: $275 + $420 + $1.94 ≈ $696.94 per hour, $0.017 per user

How much can you make

0.1 min read / Author

– Pokémon GO
– Roblox
– Fortnite

Based on the breakdowns for Fortnite ($0.18 per user per hour), Roblox ($0.053 per user per hour), and Pokémon GO ($0.0412 per user per hour), a realistic upper limit for the most profitable free-to-play games would be $0.10-$0.30 per user per hour.

Keep in mind, that Fortnite, at $0.18 per user hour, Fortnite’s estimated revenue was approximately $4.4 billion, accounting for about 85% of Epic Games’ total revenue. This revenue is predominantly derived from in-game purchases, as the game does not charge for downloads or subscriptions.

Business of Apps

This revenue is predominantly derived from in-game purchases, as the game does not charge for downloads or subscriptions. Therefore. This is why we have Massive 250+ user rooms.

Selling information that is inherently free will ultimately drive its value to zero

This phenomenon was brought to my idea by Benn Jordan’s analysis on YouTube, this is

back

Musician Onboarding

3 min read / Author

Make sure your YouTube stream is allowed to be embeddable. Without it your set will not play.

Welcome

We’re thrilled that you want to be part of this project. 

We welcome all to apply, but will select based on genre fit and following size. 

Without headcount there’s no revenue to share with you, and with a style mismatch, well it just won’t mix. 

That said, if you don’t have a following, apply anyway. The platform’s not zero-sum, and history shows that talent is not always rewarded with an audience. 

As much as we can, we want to help up and coming musicians.

`Watch For Musicians Video`

-Apply to Join

Fill out the form, which includes your YouTube channel and preferred set times:

`Fill out form`

https://forms.gle/guAnRLB9ppC1Gf2aA

and then give us the URL of your avatar to include in the set.

We also have billboards that are free to use. There’s a main horizontal 16:9 billboard, and two smaller ones, vertical and horizontal. If you would like to brand your set, please set us high res images you would like to use.

In the near future, a cool company may advertise on the set via one of them, from which you’ll also accrue commission on.

-Let others know of your DigitRaver set

You will receive a custom “deep” link that will lead visitors directly to your set, when it occurs. Post it on your channel!

This link will prompt the user (when accessed on mobile) to either install the app, or, if installed, take them to the stage where your set occurs.

You can also access the `public line-up calendar` which will list the set for your day(s) that others can add notifications for.

While there will be cross-pollination of other ravers that are not directly inbound from you, the best way to funnel your listeners is to lead them to the platform yourself.

-Participate in your set with your avatar

Your fans are there because of you, so be there with them. The performers see only one instance of a room (250 users), but instances thereafter will see you, but you won’t see them. They can also take virtual selfies with you, so be on the lookout for social media. Your blurbs and blasts are free, but theirs are (mostly, there is a rewards system) not. Humans mirror behaviour, and this is the exact behaviour that we want to elicit.

When you login with your whitelisted account, you cannot participate as a raver. Your chosen avatar will load only when your set begins.

-Check your dashboard

When you’re logged in with your performer email, you have access to a realtime dashboard. If you read our business model metaphor that we are a club with rev-share, only the drinks are virtual, and with perfect attribution, this is actually less granular than the system. The ticks on your set are not purchases, they are usages of blurbs, blasts, and private rooms. In order to encourage repeat usage, we reward users with some virtual goods. Virtual goods are also sold at discount in large quantities. Long story short, virtual goods will result in different payments.

https://digitraver.readyplayer.me/

X-twitter Instagram Tiktok Discord

-Payment

At the end of the calendar month, we pay performers via paypal if the total sum earned is over $3. We are a new platform, and don’t expect the first few months to be very profitable. You are making an investment in the platform as you will be one of the few and thus hold a disproportionate share of attention as it grows. For further analysis, please see Why join now, and How much can you make.

The music industry is currently lame, so lets change it together by changing the business model.

back