Commercial radio station Radio 538 is market leader in the Netherlands, engaging with over 3 million listeners every day. While current business is going very well, 538’s new board of directors wanted to develop new business models that were less reliant on advertising and more in line with future music and entertainment consumption.
On our online conversation platform Campfire, we engaged with 50 music and entertainment lovers in many different categories. Through creative assignments and in depth chats, we learned that listening to music is all about managing your mood. Different need states call for different types of music and music solutions. These solutions were created during a pressure cooker innovation workshop with 538 executives and creative media gurus. Accordingly, the business models that fit these solutions were developed based on the business model canvas.
One of the solutions was Juke, an on demand streaming service that’s organized by moods. Just click on the mood you’re in or the activity you need to do and 538 will provide you with matching playlists. They are selected by experienced 538 DJs, who know what music you love. Juke was launched with both free (advertising based) and paid subscriptions, a brand new revenue model for 538.
