Definition of the problem:
“Hay más probabilidades de ganar en Las Vegas que en el sector de la música” stated Ric Wake, an Independent music producer.
In a US market where sales growth is declining by 10.4% in 2002, this situation weakens deeply the whole music industry and opens to the door to a change of pattern in the way executives of this industry predict future “hits”.
Polyphonic HMI, a technology company, relies on a single marketable revolutionary product: Hit Song Science. HSS is artificial intelligence software that can assess the “hit” potential of a song thanks to an extensive analysis of millions of songs. This tool is the first of its kind to predict future “hits” with 80% accuracy which means a tremendous increase of
The information HSS provides will help producers diminish greatly uncertainty before releasing a song. Taking into account that part of their compensation is linked to the level of sales, HSS could also allow this target to increase their profit quickly by producing more “hits”.
Polyphonic should focus first on the 30 most successful producers because they have the greater ability to pay and influence on the market.
• Target 3: Unsigned Artists
The case mentions 10 000 signed artists and hundreds of thousands of unsigned artists and it’s important to note that, unlike the other segments, there will be a perpetual flow of new entrants potentially interested by HSS technology.

Value Drivers: In spite of those figures, the market size might really well be the smallest. Indeed, the unsigned artist would find the HSS technology valuable to assess the “hit” potential of their song but their inability to pay make it difficult for Polyphonic to capture this market and to ensure sufficient income. Additionally, this target might be the most concerned about the judgment of their “creativity” by a computer and therefore the most reluctant to use and trust the product.

2) Recommendations for the launch:

Based on potential profitability and ease of access and regarding the relative urgent financial situation of Polyphonic HMI in 2002, I would