2.5. Rock in Rio’s business model: An exploratory approach

2.5. Rock in Rio’s business model: An exploratory approach 1 2 Tatiana Dinis Ribeiro , Pedro António Ferreira and Maria João Vaz 3 Abstract The scope of this paper is the Rock in Rio’s (RIR) Business Model (BM). The concept of creating shared value (CSV) is integrated for a better understanding of the company’s sustainability program. The main goal is the construction of RIR’s BM based on Canvas BM. The research method used was qualitative and focused on a case study. Data was collected from sixteen public interviews, with a total length of five hours, and sixteen public documents, with a total of ten pages, available in different formats (video, digital and print). Content analysis was used to process data and deliver results. The main limitation found during the research was the lack of direct information, due to untimely response to a questionnaire sent to RIR’s managers, which conditioned the enhancement of data triangulation and obtaining information related to the use of CSV in the company’s sustainability program. Keywords: musiness model, canvas business model, Rock in Rio, creating shared value. 1. Music festival’s in Portugal In 1985 the number of music festivals in Portugal was very low. The type of music associated with them was manly classic and they were aimed at an audience belonging to the upper classes of Portuguese society. In 1990, there was a recorded increase in the number of festivals, mainly in the north, although not very significant. The year 1999 saw a greater improvement, with the appearance of Rock festivals in Portugal as well as a large growth of music festivals (Martinho & Neves, 1999). The business of music festivals had a boom in Portugal in the twenty-first century. Many external factors may have helped. With an easier access to the internet, it became possible to get free downloads of music. It caused a tremendous break in the record sales, which meant that artists had to do more live concerts to cover their losses (AA.VV., 2013). Traveling became cheaper and faster, making for a perfect combination to help this sector of business grow. In 2016, there were more than 200 music festivals in continental Portugal. These events happen mostly during summer and are very popular among the younger groups aged between 17 and 30 years old (Bramão & Azevedo, 2015b). The type of music ranges between rock, pop, alternative music, indie, electronic music, jazz, metal, hip hop and rap (Bramão & Azevedo, 2015b). The ticket sales of a festival are largely dependent of the participating artists, causing the organizers to negotiate the contracts they sign more than one year prior to the event (Fernandes, 2015). Music festivals in Portugal are very dependent of both branding and sponsors. Branding and sponsorships make for the largest share of most festivals’ revenues. These contracts tend to be long-term contracts and every year it takes a long time to negotiate all the conditions required by both parts. 1 Alumni ISCTE — University Institute of Lisbon, Portugal. E-mail: tatianadinis77|at|gmail|dot|com. ISCTE — University Institute of Lisbon, BRU — Business Research Unit, ISCTE-IUL, Portugal. E-mail: pedro.ferreira|at|iscte|dot|pt. 3 ISCTE — University Institute of Lisbon, Portugal. E-mail: maria.vaz|at|iscte|dot|pt. 2 87 88 Keep it Simple, Make it Fast! An approach to underground music scenes 3 The music festival that will be analyzed in this article is RIR, a 31-year-old festival that started in Brazil in 1985, went to Portugal in 2004, then Spain in 2008 and was recently implemented in USA in 2015. For a complete understanding of this case study, the following chapter will explain BM theory and the BM theory chosen. 2. Business model 2.1. Theory BM concept has been used more frequently since the 1990´s with many theories about how it should be. There is no right or wrong theory about BM. There are plenty of ways to run a business. Entrepreneurs should not lose focus of where they want their business to go as well as of the way to get there. The notions of every author are important in the sense that they can give guidelines to run a business, helping to organize all the information and helping maximize revenues. However, every business is different so it is impossible to give a unique recipe for creating a successful business. Fielt (2013), in his article Conceptualizing Business Models: Definitions, Frameworks and Classifications, describes the most important theories written by different authors ordered by name and year as presented in the table 1 (Fielt, 2013, pp. 87-88). Author(s) Definition Timmers (1998) Definition of a business model: (a) an architecture for the product, service and information flows, including a description of the various business actors and their roles; and (b) a description of the potential benefits for the various business actors; and (c) a description of the sources of revenues. (p.4) Mahadevan (2000) A business model is a unique blend of three streams that are critical to the business. These include the value stream for the business partners and the buyers, the revenue stream, and the logistical stream. (p. 59) Rappa (2000) In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells out how a company makes money by specifying where it is positioned in the value chain. Afuah and Tucci (2001) A business model is the method by which a firm builds and uses its resources to offer its customers better value than its competitors and make money doing so. It details how a firm makes money now and how it plans to do so in the long-term. The model is what enables a firm to have a sustainable competitive advantage, to perform better than its rivals in the long term. (p. 3-4) Amit and Zott (2001) A business model depicts the content, structure, and governance of transactions designed so as to create value through the exploitation of business opportunities. (p. 511) Tapscott (2001) A business model refers to the core architecture of a firm, specifically how it deploys all relevant resources (not just those within its corporate boundaries) to create differentiated value for customers. (p. 5) Chesbrough and Rosenbloom (2002) The business model provides a coherent framework that takes technological characteristics and potentials as inputs, and converts them through customers and markets into economic inputs. The business model is thus conceived as a focusing device that mediates between technology development and economic value creation. (p. 532) It “spells out how a company makes money by specifying where it is positioned in the value chain” (p. 533). 2.5. Rock in Rio’s business model: An exploratory approach Morris et al. (2005) A business model is a concise representation of how an interrelated set of decision variables in the areas of venture strategy, architecture, and economics are addressed to create sustainable competitive advantage in defined markets. (p. 727) Shafer et al. (2005) We define a business model as a representation of a firm’s underlying core logic and strategic choices for creating and capturing value within a value network. (p. 202) Chesbrough (2006) At its heart, a business model performs two important functions: value creation and value capture. First, it defines a series of activities that will yield a new product or service in such a way that there is net value created throughout the various activities. Second, it captures value from a portion of those activities for the firm developing the model. (p. 108) Johnson, Christensen, and Kagermann (2008) A business model, from our point of view, consists of four interlocking elements that, taken together, create and deliver value. The most important to get right, by far, is the customer value proposition. The other elements are the profit formula, the key resources and the key processes. (p. 52-53) Demil and Lecocq (2010) Generally speaking, the concept refers to the description of the articulation between different BM components or ‘building blocks’ to produce a proposition that can generate value for consumers and thus for the organization. (p. 227) Osterwalder and Pigneur (2010) A business model describes the rationale of how an organization creates, delivers, and captures value. (p. 14) Teece (2010) In short, a business model defines how the enterprise creates and delivers value to customers, and then converts payments received to profits. (p. 173) Zott and Amit (2010) A business model can be viewed as a template of how a firm conducts business, how it delivers value to stakeholders (e.g., the focal firms, customers, partners, etc.), and how it links factor and product markets. The activity systems perspective addresses all these vital issues (...). (p. 222) George and Bock (2011) (...) a business model is the design of organizational structures to enact a commercial opportunity. (p.99) (...) three dimensions to the organizational structures noted in our definition: resource structure, transactive structure, and value structure. (p.99) Table 1: A selective overview of BM definitions. Source: Fielt, 2013, p. 87-88. All of these theories have BM studies as their main focus, although they do not follow the same scope. There are different subtopics analyzed by the authors: Definition; Taxonomy; Components; Representation tools; Ontological model; Change of methodology; and Evaluation measures (Osterwalder, 2004, p. 24). These subtopics have different characteristics:  Definition: Contributions to define what a BM is or should be;  Taxonomy: Classification suggestions;  Components: Conceptual approach of BM that goes beyond the definition and the characterization, dividing the business into its components to facilitate comprehension of the business model.  Representation tool: Construction of a representation tool in order to easily understand how the business model works as a whole.  Ontological model: Define and classify a BM, define their components and explain how they connect to each other.  Change methodology: Authors that address the methodology change as well as the change of components;  Evaluation methodology: definition of indicators to measure BM’s success. 89 Keep it Simple, Make it Fast! An approach to underground music scenes 3 Osterwalder (2004), represents the approach of the main authors as characterized in the table (Alt and Zimmermann 2001) X (Applegate 2001) X Evaluation Measures Change Methodology X X (Amit and Zott 2001) Ontological Modeling X Representation Tool (Afuah and Tucci 2001; 2003) Components Authors Taxonomy 2. Definition 90 X X X (Bagchi and Tulskie 2000) (Chesbrough and Rosenbloom 2000) X (Gordijn 2002) X (Hamel 2000) X X X (Hawkins 2001) X (Linder and Cantrell 2000) X (Magretta 2002) X X X X X X X (Mahadevan 2000) X (Maitland and Van de Kar 2002) X (Papakiriakopoulos and Poulymenakou 2001) X (Peterovic, Kittl et al. 2001) X (Rappa 2001) X X X X (Stähler 2002) X (Tapscott, Ticoll et al. 2000) X X (Timmers 1998) X X (Weill and Vitale 2001) X X X X X X Table 2: BM authors list. Source: Osterwalder, 2004. As shown in the table 2 there are diversified approaches about the concept of BM and each adds value to the common knowledge of the subject. Nevertheless, it was not simple to characterize RIR’s BM without a representation tool due the complexity of their components. The Business Model Canvas seemed the most appropriate approach for this particular study, since it gives a clear idea on how the business works, connecting every component of a company. 2.2. Business model canvas In Osterwalder (2010) the author has created a very useful tool that helps entrepreneurs visualize their BM (Osterwalder & Pigneur, 2010). Business Model Canvas is simple to understand for newcomers in the business world. In the picture 1 it is presented the Business Model Canvas. 2.5. Rock in Rio’s business model: An exploratory approach Figure 4: Business Model Canvas. Source: Retrieved from http://espriex.co/business-model-canvas. Business Model Canvas is divided in nine blocks representing: customer segment; value proposition; channels; customer relationships; revenue streams; key resources; key activity; key partners; and cost structure. These are the most important components to describe how certain business work.  Customer segment: The definition of the market you want to achieve;  Value proposition: The distinction of the value you added with your product from your competitors’;  Channels: The way you get in touch with your customers;  Customer relationship: The way you treat your customer and the way he sees you;  Revenue streams: The way you generate profit;  Key resources: The human or material resources that are essential for your business;  Key activities: The description of the most important activities to the maintenance of a business;  Key partners: The description of the partners that are needed to make the business grow;  Cost structure: The costs related to the management of the business. After defining all of these points in a BM one could have a more clear idea of what is sustainable and what could be improved in the business. Therefore, it seemed important to use this model to describe RIR’s BM. The next chapter will explain the CSV concept, aiming to finding if it is possible to integrate in the company business model. 3. Creating shared value 3.1. Porter and Kramer theory CSV is a concept developed by Porter and Kramer (2011), and it is based on corporate social responsibility, sustainability and philanthropy (Porter & Kramer, 2011). The definition of CSV might 91 92 Keep it Simple, Make it Fast! An approach to underground music scenes 3 be confused with these theories. While in corporate social responsibility the company donates certain part of their profits to support social causes, in sustainability they are more focused on protecting the environment and maintain the balance between what mankind destroys and what it gives back to the ecosystem. Philanthropy is what companies give to noble causes without expecting return. Porter and Kramer tell us that shared value is created when companies create value for society, particularly in social and environmental terms, in addition to creating value for themselves (Porter & Kramer, 2011). This economic theory was consolidated step-by-step, beginning with the article The Competitive Advantage of Corporate Philanthropy, where Porter and Kramer describe how it is possible to make a company competitive through philanthropy. They criticize multinational companies for using philanthropy as a mean to promote themselves in society’s eyes. For example, Philip Morris donates almost 75 million dollars to social causes while it spends around 100 million dollars to promote their acts of charity (Porter & Kramer, 2002, p. 1). The authors defend that the critic factor to competitiveness is productivity. They believe that having better conditions for employees’ are crucial for high levels of productivity. If employees have access to education, healthcare, safety at the workplace and reasonable conditions in their own houses they will be more productive at work, which makes the company more competitive in their market (Porter & Kramer, 2002, p. 2). Porter and Kramer (2006) reinforce the idea of integration of society in the business world in order to solve the lack of understanding between companies and society (Porter & Kramer, 2006). They go on with their critics to corporate social responsibility politics used by companies, arguing that the only means that it exists are moral/civic duty; sustainability; license to operate; or reputation (Porter & Kramer, 2006, p. 3). They keep the idea that the best way to develop businesses is improving the employees’ quality of life. The better working environment a person has, the more they are willing to produce at work. Moreover, the more money a person has, the more that person will be willing to spend and, consequently, the economy flows. The authors also argue that sooner or later a weak society might bring tremendous costs to the companies, such as work accidents and non-competitive products (Porter & Kramer, 2006, p. 6). Porter and Kramer believed that: “Companies can create economic value by creating social value. There are three distinctive ways to do this: by reconceiving products and markets, redefining productivity in the value chain and building supportive industry clusters at the company’s location” (Porter & Kramer, 2011, p. 7). 3.2. Other author’s reviews CSV is a controversial theory. There were many authors to give their opinion about this concept. Many agree and find the concept useful both for society as well as for the companies. Others find it used and without any novelty, almost a copy of corporate social responsibility with little upgrade. In the table 3 there were analyzed seven different author’s that argue about the relevance of CSV concept. It was concluded that most of the authors show a positive position in reaction to the concept, although the major critics goes for the lack of novelty, the problem that companies can face having two different missions, and profit oriented theory. The concept shows goodwill from the authors on trying to make a difference in the economic sphere although it might be considered utopian, since the companies live for the maximization of profit. Subsequently the CSV concept only shows their results in long term, only companies with high levels of profit such as Nestlé, Cisco or Coca-Cola have the financial capacity to invest in this concept, as well as the ability to dislocate their business for places with low conditions of live to make a difference creating clusters of development. Although this practice is not yet fully consolidated was considered relevant to study if it is used in RIR’s business model. The company is well known for their sustainability practices as well as their size and relevance in international level. With this study, we try to understand if there are some 2.5. Rock in Rio’s business model: An exploratory approach shared value creation practices in this business model. If it is verified that RIR use this practices we want to position it in canvas business model. Author Positive Criticism Negative Criticism X Positive impact in society; Suggestion to create a business model focused in CSV. Difficulty of maintaining two goals in the mission of a company (social and economic); Difficulty in measuring the efficiency of the CSV application impact. Micheline, L. & Fiorentino, D. (2011) X Growth in employability; Development of local entrepreneurship; Access to new products and services; Increase of quality of life; Knowledge of markets; Access to local networks; Development of social responsibility. Risks of privatization of public goods; Oligopolistic markets; Guidance for profit; Long term economic sustainability; Management complexity. Szmigin, I. & Rutherford, R. (2013) X Appreciation of the positive impact of the CSV; Add the theory of Adam Smith — Invisible Spectator Test (IST) Necessity of regulators (IST) in order to have benefits both for society and the company; Florin, J. & Schmidt, E. (2011) Pros Beschorner,T. (2013) Hartman, L. P. & Werhane, P. H. (2013) Generalist approach; Oversimplified assumptions; Ambitious concept; Lack of novelty; Misunderstandings in the terminological and conceptual level; Purely economic approach. X X Crane, A., Palazzo, G., Spence, L. J., Matten, D. (2014) Rocchi, M. & Ferrero, I. (2014) Cons X X Agreement in most CSV points; Add some suggestions. It is not the only form of business awareness; Lack of definition in specific problems. Successful appeal to professionals and schools; Raises social issues at the strategic level; Articulate a clear role for the responsible behavior of governments; Adds rigor to the ideas of “conscious capitalism “ and provides a link building between concepts. The concept lack originality; Ignore the tensions between social and economic objectives; It is naive in relation to business compliance challenges that companies face. Compliance with the values of CSV concept, adding some points to improve it (Systematic CSV). Incomplete conceptual model; Little discrepancy of values between Social Responsibility and the CSV. Table 3: Table analysis of theoretical scientific articles of the concept of CSV. Source: Table constructed by the authors. 4. Rock in Rio’s case study RIR celebrated in 2016 their 31st birthday. The festival was born in Brazil in 1985 by Roberto Medina, who brought the event also to Portugal in 2004, Spain in 2008 and for USA in 2015 for the celebration of their 30th birthday. The festival was born with the promise that would be the biggest festival in the world. Every year in organization break their boundaries of success, investing in huge artists and giant animations for each event they organized. In order to measure the company’s success, we propose to describe RIR’s business model, using canvas business model. 4.1. Methodology This article is a case study about RIR. This methodology was chosen in order to build the company’s business model, in order to understand how it works, what are the most important building blocks and if it is possible to recognize some CSV politics in it. The case study approach is 93 94 Keep it Simple, Make it Fast! An approach to underground music scenes 3 appropriate for describing, analyzing and understanding formal and informal processes in organizations (Hartley, 2004, p. 323). It was also used qualitative methodology, using the document analysis to conduct the literature review and data analysis to gather necessary information from the interviews given to the media (written and audio/video format) by the company’s managers and employees. For documental analysis was used: (1) Analysis of basic articles on music festivals, business models and CSV; (2) Research articles and authors relevant to the issues; (3) Description of the theories basis of each subject; (4) Construction of the analytical frameworks; To content analysis, it was analyzed 32 interviews, which 16 of them was written and 16 video/audio. The video/audio interviews length almost five hours. For this analysis were used the next procedures: (1) Search in several media articles, interviews and news; (2) Building of a datasheet with the data found; (3) Transcription of audio interviews; (4) Construction of analytical frameworks; (5) Analysis of the interviews one by one; (6) Presentation of results. In order to present all the results of this study it was also used the canvas business model to visually represent the way RIR business model works. In the next chapter, each block will be explained in detail. 4.2. Rock in Rio’s business model RIR’s business model will be explained following the order suggested by Alexander Osterwalder (Osterwalder & Pigneur, 2010). First it will be explained the costumer segment, following the value proposition; the channels; the costumer relationship; the revenue stream; the key resources; the key activities; the key partnerships and finally the cost structures. The data for the construction of this business model was obtained by the search of media interviews due the lack of timely response of RIR’s managers to the questionnaire sent to them. Subsequently the company did not confirm this data. RIR’s Business Model was built as you can see in the figure 3. RIR’s customer segments are:  Public of the festival: buying the ticket and goes to the festival;  Sponsors: Paying some percentage of the cost of the festival in exchange for publicity of their brand or company.  Social media enterprises: paying some amount of money to have exclusive information or streaming of the concerts. The brand intends to demark itself from their competitors offering to their public:  Unique experience: They offer a unique experience not just about music but creating an amusement park in the event room;  Communication platform: RIR have a full coverage of the event by communication enterprises being a tremendous focus of attention to the media in general.  Planning and Organization: The planning and organization of the event it is a crucial point to the success of the event. 2.5. Rock in Rio’s business model: An exploratory approach  Music diversity: the variety of artist chosen to participate in the event, creating thematic days to range the bigger amount of public segments possible attract people with different musical tastes;  For a Better Word Project: RIR shows ambient consciousness with the project For a Better World, a sustainability program that intends to diminish the Human environmental footprint in the ecosystem. Key Partnerships Key Activities Value Proposition Key Resourses CostumerRelationship CostumerSegment Chanels SUPPLIERS CostStructure ARTIST'S REVENUE Revenue Streams INSURANCE PRODUCTION Figure 2: RIR’s Business Model. Source: Ribeiro, 2015. Biggest festival in the world: The patent of biggest music festival in the world helps in terms of reputation and quality standards. RIR gets in touch with their clients through different channels:  Social networks: Social networks are used to promote the festival and help the costumers to get actualized information about what is going to happen on it.  Contact network: The contact network are all the brands involved in the organization as sponsors and partners that promote the festival before and during the event.  Media Partner’s: Media partner’s whose support the festival.  Official website: Official website of the festival where are given all the information’s related to the festival as well as curiosities.  City of Rock: Contact with the public in the event’s plaza. The relationship that RIR wants to establish with their costumers is based on trust in the brand. The organization of the festival tries to increase the quality of the event every year. The particular relationship that the brand wants to establish with each specific costumer segment it is not totally understood, although it is noted that there is personalized treatment for each kind of costumer. These relationships are listed as:  Relationship with sponsors: Relation of proximity, using legal contracts and agreements;  Relationship with the public of the festival: Regular relation costumer/seller, trust based in the final product; 95 96 Keep it Simple, Make it Fast! An approach to underground music scenes 3  Relationship with VIP public: The organization of the festival makes a special effort to please these clients in order to give a good image for the rest of the costumers. Having celebrities going to the event gives good reputation.  Relationship with social media: Relation of proximity, using legal contracts and agreements; The four points listed above are the main responsible for the success of the festival, as well as the amount of revenue obtained before, during and after the event. If all the processes happen according to the expectation, in the end of the festival there are a massive profit, even after paying all the cost associated with the organization of the event. Revenue Stream is generated through:  Ticketing: Revenue earned through the sale of tickets to the event;  Licensing: Revenue made through the licensing of the brand to other companies or brands (for example Toyota Yaris Rock in Rio);  Spontaneous media: Revenue obtained by social media without partnership with the brand in publicity;  Sponsorship: Revenue gained through the sponsor that pays to have their brand related to the festival;  Merchandising: Revenue earned through the selling of merchandising of the festival;  Media Partners: Revenue made through the selling of the exclusive news our transmission of the event. The key resources have a substantial importance to the success of RIR’s business model. These resources are:  RIR’s Team: RIR’s employees are the main asset of the company. They are responsible for all the contracts that the company sign in order to have success.  RIR brand: RIR brand is a massive asset since brings huge profits to the company.  Musicians: Artists are quite important since without them the festival could never exist. The better the artists contracted more ticket sales the company will achieve.  City of Rock: Although the event plaza is indispensable, it not belongs to the company nor in Brazil, nor in Portugal or USA. The organization of the festival makes agreements with town hall to have this spaces through counterparts;  Outsourcing: The organization of the festival hire outsourcing for all the material needed to the festival. Light, sound, stages, amusement machines are assembled by outsourcing companies. The key activities developed by RIR are:  Hiring artists: This process takes more than a year to the company, and requires a huge effort to RIR team. This process goes from the first call to the artist manager till they sign the contract;  Capturing sponsorship: The capturing of sponsorship is a slow process that requires much negotiation. As well as hiring artists it is an activity developed by the RIR team;  Infrastructure management: These activities included the City of Rock management during the event, management assemblers of stage, lights and sound. This activity is important to make the festival happen, as well as to maintain their good image;  Design experiences: Design the festival in order to make the public have the better experience they could;  Design campaigns: The design of marketing and advertising campaign is probably the most important activity in the RIR. As the managers of the festival mention the RIR is not just a music project, it is a communication project;  Project management: Production of RIR requires the management of various types of projects in which the festival is involved. Among these should be included in the 2.5. Rock in Rio’s business model: An exploratory approach project For a Better World, the festival export projects to other geographies, Rock in Rio Academy, among others. The partnerships that RIR agree are benefic for both parts. Some are payed in real money, others by counterparts. These partnerships are:  Artist’s manager: They are company partners because they enable organizations to contact artists in order to sign contracts.  Media partners: To promote the festival;  Governments and city halls: Essential entities to the event. The company need various agreements with the local authorities where the event is located to enable it to happen in perfect conditions;  Sponsorship: Sponsors are crucial to the event, especially in the dissemination, visibility and for its funding;  Suppliers: Suppliers are a fundamental to hold the festival in various areas of operation, such as the supply of food and beverages, assemble stage, lights and sound. The main cost associated with the organization of RIR are:  Artist’s revenue: The paychecks of artists are a major festival costs. This value is variable, taking into account that depends on the band or contracted musicians. The cost of hiring artists is an important part in the total costs of the festival.  Production: Production services involve all the activities of the RIR’s team as well as his salary and legal obligations of the company. So this is the activity that requires the largest RIR financial burden for the festival and these are fixed costs.  Infrastructures and services: The infrastructure and services to the festival represents another major cost. Mounting the stage, light equipment, sound, pyrotechnics and other activities necessary for implementation of the festival makes the RIR also incur high costs to ensure the quality of the organization of the event;  Counterparts of partners: Compensatory measures required by municipalities have representation in the event of the cost structure, but are not the most relevant factors.  Insurance: equipment insurance products, workers’ insurance, artists and costumer’s insurance are fundamental to the safety of participants of the event as well as a huge cost for the company. 4.3. Creating shared value integration in Rock in Rio business model As could be noted in the construction of RIR’s BM, it was not possible to prove the application of CSV politics by the company. It is well known that the company has a sustainability program, although we could not prove with the information gathered if RIR use CSV or not. Since there is no evidence of the application of this concept by the company, its introduction into the business model is testable. However, it is believed that if this concept were to happen, would enter with the commitment to sustainability of the company, given the nature of the activity. Thus, it can be considered that it would join the project For a Better World in the value proposition as the key activities by the project management. Nevertheless, these assumptions cannot be proven through a company’s source. 5. Conclusions Throughout the analysis of the interviews from RIR’s managers and employees, it was possible to build its BM, which was the main purpose of this paper. The conclusions we can take about RIR’s BM concerns the most important activities for the perfectly operation of the business. Although its BM is consistent, the company is quite dependent of partnerships, sponsors and media partners to assure the viability of business. 97 98 Keep it Simple, Make it Fast! An approach to underground music scenes 3 Also, we can understand that RIR has a huge communication platform which is manly supported by the sponsors and partners of the brand. This entire factor makes the value proposition the costumer segment as well as the key partners are the most important building blocks for the RIR’s BM. Consequently, we might conclude that the crucial resources of the company are the human resources, because without the RIR’s team it was not possible to organize and manage all the operations to make the festival happen in the perfect conditions. Concerning the applications of CSV concept, it was not possible to confirm and deny the practice of CSV politics in the sustainability program of the company. Although, if it was possible to find this politics in RIR’S BM it would be positioned in the value proposition building block along with the For a Better World project of sustainability. These conclusions are exploratory since it was not possible to confirm the results with a source related to the company. Unfortunately, it was not possible to have an answer to the questionnaire sent to the company manager in time to introduce in this paper. References New Business Models in the Music Industry. 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