Kenneth Mack
Brooklyn, NY (USA)
Role(s):
Founder/Owner/Principal
Mack Entertainment Music Group
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Startup
Location:
Brooklyn
Industry:
Entertainment
Year Founded:
2017
Number Employees:
1-10 people
Business Stage:
Decline
Entity Type:
Limited Liability Company
Description:
The music industry sales in 2016 were $16.15 billion in the US and globally, 42.93 billion . Further, revenue growth in the US music industry was a staggering 11.4% from the previous year . Specific sub components within this industry have shown exponential growth. For example, record label revenues from musical streaming services has increased 45.2% over the last year alone . This shows music customers have, and will continue, to spend money to purchase their favorite songs. However, the method in which the customer receives the music changes constantly. This situation poses a significant challenge for the music industry.
The major problem facing the music industry is offering quality music, in a specific genre, to the target demographic using ever-changing methods of distribution channels, on a global scale. Large, entrenched competitors are attempting to exploit this issue by investing in the music streaming industry through acquisitions, mergers, and equity positioning. This strategy allows small independent record labels to exploit niche market opportunities. Mack Entertainment Group (MEG), lead by Kenneth Mack, seeks to exploit niche market opportunities overlooked by large, entrenched competitors using an experienced management team with a wealth of knowledge and contacts in the industry.
MEG seeks to produce and distribute quality music to specific target markets through the use of proven business models. The business models to be employed are “Marketing to Musicians”, a step-by-step audition process to attract and sign undiscovered talent, and “Explosive Distribution”, which is a dynamic process of producing and distributing quality musical works, using cutting-edge technology, to a target audience, using a multitude of distribution channels. In addition, MEG will supplement musical works by offering complementary products such as posters, T-shirts, and other popular items. The outcome of this venture will be steady, increasing, multi-faceted cash flows over the next three years.
To fund this venture, Mack Entertainment Group is seeking $500,000. The funds will be used as startup capital for the independent record label. Start up spending includes renting office space, employee salaries, entertainment symposiums, branding inventory, technological innovations, creation of distribution channels, and other startup expenses. The revenues for the first year are anticipated to be $1.5 million. After all expenses are paid, net profit is estimated to be $643,000 for the first year. Investments may be in the form of equity or debt. Terms for funding are negotiable.