The iDMZ "Sayaw Pinoy!" Business Plan / Mary Rose Juanson Demetillo

Year : 2012

Number of Pages : 135 leaves

Adviser : Prof. Edison D. Cruz

Executive Summary

The advent of internet technology provided a new medium for radio broadcasting. Internet radio industry all over the world is growing and the local scene is likewise keeping up with this growth. Aside from terrestrial radio stations that rebroadcast or simultaneously broadcast their programs over the net, there are also stations that broadcast their programs solely via the Internet. These "internet-only" radio stations in the Philippines totaled to 54 according to shoutcast.com (2011). iDMZ "Sayaw Pinoy!" is an internet radio station inspired by the icon radio station in the 80s known as 89 DMZ (Dance Music Zone). The iDMZ "Sayaw Pinoy!", was formally launched last August 28, 2011 and is currently airing over www.89dmz.com. The company was registered under the said domain name on November of 2010. It was conceptualized by two former members of 89 DMZ - a disc jockey (DJ) and a member of the mobile circuit. It is the first and the only Filipino interactive website that offers non-stop dance music in form of song mixes that caters to entire genre, from the 70s up to the present. Prior to the launching of DMZ "Sayaw Pinoy!," the founder has created an open-group page in Facebook under the account "89 DMZ (Dance Music Zone)". To date, the page has approximately 3,000 members from around the world and the iDMZ Sayaw Pinoy! website "hits" ("likes") were close to 10,000. The company's vision is "to be known globally as the first internet dance music radio station in the Philippines". Its mission are : to provide unadulterated dance music, catering song hits from the 70s up to the present. - to reach out to listeners all over the world through modern web technology, - to serve as a medium and a creative avenue for entertaining music savvy listeners and connecting them through the internet technology. Through the computer and internet technology music and radio industry has evolved in terms of accessibility and innovativeness. It provided ease of access with the various platforms that can support radio broadcasting. The social networking site, Facebook became a venue that reflected the market demand for online radio programming of various dance music. This recent shift of Philippine terrestrial radios from niche programming to the trendy mass-based programming has left the former (to include dance music lovers) detached with the terrestrial radios and went online to catch the songs that they prefer. This opportunity was seen by the founder to start an internet-based radio that will cater to the niche market of dance music lovers. The market was properly screened prior to the launching of the business through a social networking site. The owner scouted for the best talents from his colleagues and family members to help him plan, launch and operate the business.

The target market of the website are llisteners aged 25 to 45 and others who appreciate non-stop dance music from 1980s up to 2000s. It also includes music professionals like DJs of all ages who prefer continuous music with less talk. The company targets to get a 25 percent chunk of the market on its first year of operations and 75 percent and 100 percent segment on the second and third year, respectively. The full launching of iDMZ "Sayaw Pinoy!" as an online radio station was almost two (2) months after www.89dmz.fm (considered to be the direct competitor) has launched its station in July 2011. This direct competitor (89DMZ.FM) who attempted to fully revive 89 DMZ, has now page "hits" ("likes") of only 20 percent of iDMZ "Sayaw Pinoy!". The sustainability and growth of iDMZ "Sayaw Pinoy!" is attributed to its "well-thought of" program format, an excellent platform compatibility, long-term company vision and excellent market screening. It projects to reach positive cash flow at the 10th month of operations and break-even point on the 10th month. The iDMZ team is composed of the CEO who likewise acts as the Program Director, their Technical Consultant/Main Talent (Disc Jockey/Voice Over Announcer), the administrative and marketing officers. The iDMZ "Sayaw Pinoy!" airs 24 hours dance music hits and has daily special programs to include the following : (1) New Wave 24 - Sunday, (2) Slow Jam- Monday, (3) Be Heard! - Friday, (4) Saturday Night Dance - Saturday and the soon to air programs (5) Mobile Mixes - Tuesday and Thursday and (6) Retro 70s and 80s - Wednesday. Among these programs, the most unique is the Friday's "Be Heard!" since its showcases the talents of the iDMZ Facebook members which made the site and the station more interactive and highly sociable. The operating cycle of the company starts with performing music/song research, selection of hit songs from this, modify song beats ("mix"). Scripts will be voiced and inserted in the playlist which will be previewed, finalized and schedule for airing. For interested sponsors, agreements will be done with the company owner, and the design layout will be plotted and uploaded in the web page. Collection of initial payment will be made prior to design layout and upon uploading, sales invoice will be processed to proceed with the collection of remaining payment balance. The program director is to monitor the frequency and duration of the advertisements to ensure that both parties follow the items stated in the contract. There are several advertisement types offered by the company and the rates are cheap compared to the rates of the commercial stations in the country. The advertisements can be in form of banner ads or music spots, i.e. voice over advertisements between song mixes. The financial studies showed the gross profit of the company will increased from 66 percent on its second year of operations to 79 percent on its third year assuming that the 25 percent of the maximum revenue will be generated on the corresponding period. Likewise, net income is foreseen to increase from 41 percent to 51 percent given the same assumptions. The company has good ratios on profitability, liquidity and financial leverage. It will be able to employ and utilize its assets and investments well and will have 4x available funds to cover its debts.