Summary:

Following on from Part 1 of the ‘Innovation Files’ series, this post looks at EMI’s OpenEMI initiative and how it could drive transformation…

Following on from Part 1 of the ‘Innovation Files’ series, this post looks at EMI’s OpenEMI initiative and how it could drive transformational innovation within the major record label and publisher.

EMI today announced an interesting developer initiative that aims to revolutionize the way in which developers work with EMI. Securing licenses from record labels is a notoriously resource intensive and time consuming process that can leave some apps still born: many smaller developers – especially the one man outfits – often simply can’t spare the resources, time (and money) that can be required.

EMI have inserted themselves into the developer value chain

To streamline the process EMI have inserted themselves directly into the developer value chain. They have partnered with the Echo Nest to build a ‘sandbox’ where developers can access a repository of continually updated EMI content including music, videos and artwork. Developers need only sign up to EMI’s API to start working with the assets.

Developers can either proactively develop their own ideas or respond to briefs and requests sent from EMI, who will funnel combined requests from artists, managers and labels. Developers however do not get to simply build Apps using EMI’s content and then go take them to market. Instead every app requires EMI approval, and EMI hopes to encourage best practice of developers submitting requests as early in the process as possible.

Clearly not all apps will get approved and there is certainly potential for log jams. However the process will most likely streamline organically – assuming all partners have the right attitude and willingness to be sufficiently agile. It will also be a great platform for all the extra content that 360 artist deals now deliver and that major labels too often just aren’t utilizing well enough.

Open EMI can, and should, go way beyond artist apps

Although initially this set up will principally act as an innovative alternative vehicle for sourcing artist apps – with developers playing around with EMI’s APIs replacing the traditional tender and quote process – it has much bigger longer term potential. The name EMI has given this initiative speaks volumes: OpenEM. It is a statement of intent. Even though what we will see in this initial phase is relatively modest, it takes huge amount for an organization like EMI to take what is for them such a radical approach to their content. More importantly I expect this to be an opening salvo in a broader strategic move.

An API for EMI’s own innovation

EMI have not just built an API framework for developers, they have built an API for their own future innovation. The challenge for EMI is the degree to which they can fully harness this new innovation toolset and respond to the new approaches and mindsets it will require.

These are the three things I would like to see EMI use OpenEMI to deliver:

  • Learn from the OpenEMI developer community to help start building the next generation of music product, not just Artist Apps
  • Seed the culture and mindset of the OpenEMI community throughout EMI
  • Learn and implement innovation best practices throughout the entire EMI organization

OpenEMI is a brave step that has the necessary senior executive support to be a success. To help ensure success, OpenEMI’s champions will need to win support across all levels of the organization, and to do that they will need to demonstrate clear benefits to the most sceptical of opponents.

Driving Transformational Innovation

Transformational innovation is never easy to implement because its path is littered with the corpses of the products, processes and jobs associated with the old ways of doing things. But it is exactly this difficult path that all media companies must take if they are to emerge intact out of this unprecedented period of disruption. The Terra Firma debacle was an unfortunate distraction for EMI at exactly the time they didn’t need it, leaving them at distinct market disadvantage. They need an unfair advantage to start re-levelling the playing field. Driving transformational innovation through the entire organization, commercial partner relationships, artist relationships and product strategy is the fuel for that advantage. If harnessed to its full potential OpenEMI can be the first step on that tricky path.

» For 11 years, Mark Mulligan was a vice president and research director at Jupiter Research (later acquired by Forrester Research). He now blogs at The Music Industry Blog

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This article originally appeared in Music Industry Blog.

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