2023 HSBC/HKU ASP Business Case Competition Round 2 - The University of Hong Kong

Summary

In the 2023 HSBC/HKU ASP Business Case Competition, participants from The University of Hong Kong presented a strategy for the music company 88 Rising. They focused on leveraging the company’s Asian-centric approach and planned for dual phases: cultivating new talent and collaborating with industry partners for concert organization. The team outlined potential opportunities and challenges, emphasizing the importance of diversifying the range of artists and music genres to sustain competitive advantages and increase market share. Financial strategies, including raising funds through convertible bonds, were also discussed.

Highlights

• Participants from HKU present an instrumental strategy for 88 Rising. 🎶
• Focus on cultivating new Asian talent and collaborating on concert logistics. 🤝
• Highlighting the significance of cultural identity in music for Asian Americans. 🌟
• Strategic use of social media to identify and promote new artists. 📱
• Planned joint ventures aim to enhance concert experiences and industry presence. 🎭

Key Takeaways

• Cultural identity can be emphasized through music, particularly for Asian Americans. 🎵
• 88 Rising prides itself on being an Asian-centric force in the music industry. 🌏
• The strategy involves cultivating new Asian talents and forming partnerships to expand concert reach. 🎤
• 88 Rising must innovate to retain competitive advantage in a diverse music landscape. 🌟
• Potential financial growth through strategic partnerships and market expansion is projected. 📈

Overview

The University of Hong Kong team at the 2023 HSBC/HKU ASP Business Case Competition has crafted a compelling strategy for the prominent music label, 88 Rising. This strategy centers on fortifying its distinctive Asian-centric identity within an increasingly multicultural and competitive industry. The team has proposed a two-phase approach involving ‘Cultivate’ for discovering raw Asian talent, and ‘Affiliate’, focusing on expanding concert and performance reach through strategic collaborations.

To commence their strategy, the team addressed the dual challenges of maintaining competitive advantage and broadening talent spectrum. They highlighted the importance of cultural identity in music for Asian-Americans and envisioned 88 Rising as a nurturing entity for untapped Asian talent. Through a meticulously designed social media campaign, they plan to spotlight potential artists, offering them opportunities within the music scene.

The financial roadmap forms a critical element of their strategy, with plans to boost market share through partnerships, notably by issuing convertible bonds worth 600 million HKD. These funds aim to facilitate the groundbreaking collaboration efforts like ‘88 Unites’—a joint venture to democratize and refine concert logistics, thereby propelling 88 Rising into a resilient leader in the music industry.

2023 HSBC/HKU ASP Business Case Competition Round 2 - The University of Hong Kong Transcription

• 00:00 - 00:30 people often ask where are you from and the answer to this it's second nature to us so much so that we often forget the significance that our cultural identity can carry especially as we live and immerse ourselves in different cultural environments which is commonly seen for Asian Americans in reality we can reinforce our cultural identity in our daily lives even through music good morning everyone I'm Emmy and to proudly
• 00:30 - 01:00 represent the University of Hong Kong I'm joined by Chris Sylvia and Aishwarya today we'll be presenting an instrumental strategy for 88 Rising as it conducts its future plans 88 Rising has taken pride in being a distinct force in the music industry since 2015. it echoes the message of Asian cool establishing its niche as an asian-centric company but how can 88rising sustain lasting competitive advantages particularly at
• 01:00 - 01:30 this emerging competition whilst also securing a diverse Talent reach across multiple music genres and this spotlights two key challenges one maintaining a durable competitive advantage and two innovating and expanding its Talent acquisition these can be overcome by our solution of 88 creates in which we create multiple opportunities for multiple stakeholders phase one is to cultivate cultivate
• 01:30 - 02:00 Asian Talent Phase 2 is to affiliate affiliate with unusual limited this will translate an average concert capacity saturation of 70 to 75 percent one to two eat new artists signed each year on average as well as a seven percent annualized sustained Revenue growth I'll now pass the time to ashwaria to help us better understand the music industry thanks Emmy so as my colleague has mentioned music consumption by the Asian
• 02:00 - 02:30 American community that is very closely tied to cultural identity and what it inherently means to be Asian American amidst a global shift towards diversity and inclusion 68 of Asian Americans identify with the entertainment from the original ethnicity over a broader Asian American culture and 67 feel a sense of Pride when they listen to artists of a similar background hence evidently even as 88 Rising grows in size sticking to their asian-centric approach is imperative on the other hand Asian Americans are
• 02:30 - 03:00 increasingly exploring new genres with pop and Hip-hop music with the highest growth rates suggesting that 88 Rising should not limit itself to Simply Asian rap diversifying the Asian pool into other genres would be equally rewarded now the rapid growth of live experiences and concert music is something we'd like to bring your attention to Asian Americans actually spend almost five times as much as the average gen Z American on live music and Performance Management ticket and live streaming
• 03:00 - 03:30 make up a whopping 20 of overall record label Revenue this is evidently an opportunity waiting for Ada ryzen to capture in conjunction with the growing Market size of the projected population itself now to understand where 88rising can really leverage its core competencies we conducted a simple value chain of analysis of its key operations on the left we see that ADA Rising gains Revenue as a record label through artist management marketing and multimedia platforms its unique asian-centric
• 03:30 - 04:00 approach has expanded to distinctive experiences such as the head in the clouds concert and Outreach outside the music industry through movie soundtracks and lifestyle collaborations on the right if we look at the music production production value chain in general we can identify three key streams first Upstream where the actual content creation takes place through composers and the artists themselves they then provide this contract on a contracted basis to tier one Midstream
• 04:00 - 04:30 intermediaries which are the distributors in exchange for licensing fee and profit sharing they then provide this content to tier 2 intermediaries consisting of live performances album streaming and external consumption for example for background tracks and merchandise lastly Downstream entails of the actual consumption of Music content through the channels that the consumer is exposed to as an artist management and marketing company all in one Ada Rising needs to ensure that it not only increases the
• 04:30 - 05:00 channels available to Asian American consumers for public exposure but maintains the quality of Such live and streaming services to retain them as the label loyalists thus we are presented with two essential objectives with regards to Ada rising's next steps first with the rapid growth of competing record labels and management companies the need for a durable competitive Advantage solely just targeting the Asian market is no longer enough as the industry analysis has evidenced Ada Rising needs to cater
• 05:00 - 05:30 to their growing digitized and live performance needs furthermore we understand that despite a firm's marketing efforts and public exposure it is ultimately the artist that will drive social impact and actually resonate with our target audience Asian Americans value variety and deeply rooted content creators and hence our second objectives involves expanding Talent acquisition in an Innovative yet consistent manner we evaluated a few alternative options to Target set objectives before arriving
• 05:30 - 06:00 at our solution we first consider diversifying Beyond Asian artists and perhaps catered to another niche market in addition such as South American or reggae music which is up and coming but this entirely revokes Ada rising's consistency and interesting expertise with the Asian market we considered expanding marketing activities or extending the 360 deal with record labels but the solely AIDS artists and not on the long-term consumption of such music by the community lastly providing formal training was an option but this
• 06:00 - 06:30 heavily replicates the trainee system in the K-pop industry and doesn't pertain to a smaller close-knit company like 88 Rising hence we present to you with 88 creates creating opportunities to make its position as an Asian focused company unrivaled this can be done through active and consistent efforts the spotlight and uplift Asian artists to elaborate Ada creates will consist of two phases phase one cultivate will focus on Upstream content creation
• 06:30 - 07:00 expanding on Ada rising's reach and potential in acquiring talents while phase two affiliate will allow 88rising to gain a durable competitive advantage through the expansion of mid and downstream channels overall it will create numerous benefits for 88rising but most importantly it will advance in Ada rising's mission of inspiring young Asian Americans through its asian-centric roster of artists now we'll introduce you to our first phase of ADA creates to innovate and
• 07:00 - 07:30 expand Ada rising's current approach to Talent acquisition currently numerous musical talents are still not discovered in the market because of a lack of opportunities and resources yet they are passionate about presenting their capabilities as such it is essential for Ada rising to create platforms to write such support to emerging artists so that their voices can be heard a day rising at the same time is facing intensifying competition from major
• 07:30 - 08:00 record companies such as universal and Sony and Rick's losing artists to its Rivals it also relies heavily on the CEO to acquire talents which is not sustainable in the long run and further stats have shown their consumers would like to see more Asian artists on the digital music platform while the Korean market is limited to a feel well-known artist inhibiting diversity and overall entertainment hence we present to you our first solution cultivate a social media
• 08:00 - 08:30 campaign with the primary objective of exploring untapped and fresh Asian music talents for potential signing and promotion our target audience would Intel gen Z and young Asian talents with no record label signings the campaign aims to collect music pieces of any genre from the target audience on social media platforms including Way Board Instagram and Facebook Ada Rising will be publishing
• 08:30 - 09:00 10 to 20 sub minute pieces weekly and calling for votes to select the three works most loved by the public artist Managers from Ada Rising would then connect with the authors to feature their stories with music or experiences growing up as an Asian or Asian American and moving forward Ada Rising can assist the featured artist in polishing their music and distribution simultaneously the company should negotiate contracts outline terms of
• 09:00 - 09:30 Revenue sharing Etc and we want to highlight that these contracts can be short-term depending on artists preferences also our cultivate campaign can achieve a balance between skill and control as Ada Rising has marketing expertise in artist launches and managing social media platforms so technical issues would not be a concert plus it eases the burdens of the CEO for reaching out to Asian American talents while cultivating young talents with Diversified
• 09:30 - 10:00 backgrounds for 88 Rising now I will pass the time to my colleague Chris to elaborate on our Phase 2 solution thank you Sylvia in this phase we present to you on Innovative entity known as Ada unites which will really find a way concerts are organized and Empower artists and record labels across Asia before we delve into the intricacies of our Fleet solution it is crucial to comprehend the underlying motivations and challenges faced by the various steady colors involved by addressing their needs we aim to create a comprehensive solution to Fosters
• 10:00 - 10:30 mutual benefits and sustainable growth for all parties involved let us Begin by delving into the perspectives of the artist with an 88 rising and other record labels while these talented individuals possess immense potential they often encounter limitations when it comes to expressing themselves through large scale of concerts consequently there are opportunities for gaining widespread public exposure are significantly curtailed in addition smaller Asia tend to record labels face their own unique set of challenges these labels often struggle to find the right concert organizations to collaborate
• 10:30 - 11:00 with as each collaboration must be negotiated and executed on a separate basis the fragmented nature of this process coupled with a limited size of certain record Holdings makes it difficult for these labels to secure the appropriate concert Arrangements moreover investors who contribute their resources to support concerts encounter their own set of challenges one of the significant issues they face is the lack of transparency surrounding the information provided for potential investment opportunities this opacity often makes it challenging for investors to make informed decisions now let's
• 11:00 - 11:30 shift our Focus to 88 Rising the driving force behind this transformative solution to achieve their goal of obtaining a durable competitive Advantage 88 Rising must seize the opportunity to significantly expand their artist pool by joining forces with unusual limited on eminent companies specializing in concert Logistics and management 88rising will solidify its position as an industry leader through the creation of 88 unites a joint venture between 88rising and unusual limited on new concert holding company
• 11:30 - 12:00 will emerge this powerful Alliance will bring together the resources expertise and Technical know-how necessary to launch successful concerts on a routine basis for 88rising and other record labels artist form you may be wondering why unusual limit is the ideal partner for 80 arising in this endeavor unusual limited boasts a remarkable track record in overall concert planning and management backed by over two decades of experience spanning North America and the Apec region they possess extensive knowledge of the intricate technical requirements
• 12:00 - 12:30 that underpin successful concerts these credentials align perfectly with 88rising's long-term Vision as they require a partner capable of consistently delivering exceptional console experiences however unusual limited by virtue of the business model lacks a dedicated RS pool this is precisely where our affiliate solution comes into play effectively Bridging the Gap and providing a symbiotic solution for all parties involved through a well-crafted joint agreement between 88rising and unusual limited 88 unites
• 12:30 - 13:00 will be established as a new holding company as a dominant shareholder 88 Rising will leverage its unmatched expertise and Industry insights to launch regular concerts that showcase the talent from various record Holdings including their own with their deep understanding of the artist and the artistic Visions 88rising will curate masterminding experiences deciding the artist's agendas and sequence to Captivate audiences globally simultaneously unusual limited will assume responsibility for all of her ensuring that all technical elements of the concert are flawlessly executed
• 13:00 - 13:30 their vast experience and Technical compounds will guarantee that every aspect from Sound and Lighting to Stage production meets the high standards by combining the artistic vision of 88rising with the technical Mastery of unusual limited 88 unites will deliver Unforgettable cost experiences setting new benchmarks for excellence in this industry hence through this new creation of 88 unites every stakeholder is able to mutually benefit each other creating a win-win situation for all for instance let's take a look at how 88 rising and
• 13:30 - 14:00 onion limited can benefit each other 88 Rising will be providing their artist pulls to undo limited and unusual limited providing expertise to perfect the concert live experience in return 88 rising and smaller record labels can benefit each other too it is rising as a dominant shareholder of idiot unites will be providing the smaller record labels their knowledge on being successful as an Asian record label while at the same time idiot Rising will also be benefited in return by gaining valuable insights from working with more
• 14:00 - 14:30 artists we're happy to elaborate further upon the mechanism behind the 88 unite solution in the Q a section now we bring Ada crates together with the implementation of cultivate and affiliate it is clear that both objectives can be well accomplished for example Phase 1 will be targeting the expansion of talent acquisition with our cultivated solution Ada Rising now has a channel to attract new Asian music talents Wireless also showcasing its commitment as an asian-centric Music
• 14:30 - 15:00 Company to empower Asians and contribute to raising cultural awareness further the company can quickly diversify music genres Beyond reps appealing to a broader range of artists and audiences the following is gaining doable competitive advantages targeted by affiliate Ada Rising will now acquire a larger pool of artists from various record labels to enhance public exposure and eliminate the sales disadvantages when competing with more prominent
• 15:00 - 15:30 record labels such as universal last but not least a positive feedback cycle can be reinforced through Ada unites where Ada Rising will attract more extensive groups of Asian artists while the new entity to perform in concerts and continually improve the live experience and their competitiveness on a global scale to achieve the formation impacts it is key to launch each component of ADA crates in a strategic sequence for Phase
• 15:30 - 16:00 1 cultivate it can be actualized more quickly than Phase 2 with its official launch set to Q3 of 2024 at latest submissions from aspiring Asian artists can then be collected on a rolling basis from 2024 Q2 onwards with best pieces being featured on a weekly basis Phase 2 affiliate will require more preparation and talks with ongiro should begin at Q3 of 2023. this should allow ATA unites to be launched within 2025
• 16:00 - 16:30 along with the first concerts taking place in 2026 the following year we'll be happy to elaborate further in the qna station upon request let us now dive into our financial analysis and look at the forecasted results based upon our implementation timeline so in regard to the external funding for 88 nights we expect around 600 million Hong Kong dollars to be raised and we believe this is reasonable given the 1.16 billion Hong Kong dollar market capitalization of unusual limited
• 16:30 - 17:00 the external funding will be conducted by issuing convertible bonds with a six percent coupon interest meaning if investors choose not to convert to shares at the end of the three-year period they would then be provided with another six percent return hence providing a cumulative return of 24 as shown here on the right the implementation through the implementation of our Solutions we expect 88rising's market share to increase from 4.5 percent in 2023 to 7.8
• 17:00 - 17:30 percent in 2027 and this should be accompanied by an average concert capacity saturation rate of around 70 set and a sustained annual revenue growth of around seven percent however 88 Fates is not without its risk so the first risk that we've identified is an insufficient number of artist submissions for the cultivate phase of our solution we recognize that it can take time for our campaign to gain traction therefore the marketing message
• 17:30 - 18:00 should be meticulously designed to Encompass both emotional and rational appeal to the Asian and Asian American demographic giving them strong incentives to take part also A8 Rising may experience difficulties in managing a now larger group of artists in different music genres so 88rising should assign individual artist managers to each genre who can then act as a primary point of contact between artists
• 18:00 - 18:30 and the company and if necessary 88rising can also see collaboration and consultation from external experts furthermore the success of our affiliate stays stage will be highly threatened if unusually limited is not sufficiently incentivized to form a joint venture with 88 Rising however we believe the benefits provided of enhanced exposure visibility reach as well as access to a
• 18:30 - 19:00 wide fan base can be highly convincing all in all 88 Rising should maintain its pre take proactive measures to maintain its individuality in the bustling music industry and we are confident that the two phases of 88 crates can uplift the company to new heights while staying true to its asian-centric approach by cultivating and affiliating 88rising can become a company like no other in other words it can act as a hybrid
• 19:00 - 19:30 platform that connects Asian artists and international audiences with a strong focus on young Asian Americans hence through 88 creates 88rising can now Empower listeners from all over the world to dance to their own Rhythm this concludes our presentation and we are now open for questions thank you thanks for the presentation and now let's move on to the question answer session we will have 15 minutes
• 19:30 - 20:00 thank you so much for letting me ask the first question let's get a timer ready first yeah I'm just wondering you know you have a cultivate and affiliate if um you know after presenting to the company they can only choose one either cultivate or affiliate which one would you recommend and why yeah I'm sorry the tech team please get
• 20:00 - 20:30 the time already yep okay let's start okay uh I think I'll try answering that question I think that's a really great question um if we were to choose between cultivate and affiliate of course uh these two should be working together as they are targeting specific Market sectors um as a cultivate is all about Talent acquisition and while a fleet is all about maintaining that dual competitive energy against other Market competitors so really ideally these two uh sections
• 20:30 - 21:00 of the solution should really go hand in hand to form a holistic solution framework for Ada creates however uh to answer your question if you were to choose between uh one of the other then we think affiliate would be a more comprehensive solution that provides a durable Advantage for 88rising as this is something that really they should be focusing on uh to maintain their market share and raise their competitiveness against the increasing competition faced within Asia
• 21:00 - 21:30 where bigger companies like Universal for example they have also started creating these very Niche record labels specifically targeting Asian talents and so to protect themselves against these larger companies trying to eat into the market share we believe area Rising really should be leveraging upon their expertise and this partnership with unusual limited to prepare and embrace themselves against this competition from other larger Asian record labels
• 21:30 - 22:00 you yeah perhaps okay next uh so in in the cultivate um a key success element is you know successful acquisition of talent and if you look at the competitive landscape you know 88 Rising being quite a small player and you're alluded to earlier that some of the larger labels are actually having some of these Niche labels as well if I were one of the
• 22:00 - 22:30 content producer one of the artists what do you think would attract me to 88 Rising um against somebody the other competitors that I'd hate rising and with competing against thank you yeah thank you for a question we definitely think um that's a very valid concern so to elaborate on that uh we believe that ADA rising's core competency is this asian-centric approach which is to its ability to contribute to raising
• 22:30 - 23:00 cultural awareness and plus to uh effectively attract those artists we choose the social media as the medium for our campaign and this is because like social media can help us reach out to a brighter range of audience despite geographical limitations especially at the initial stage and plus we've also noticed that many independent music lovers With No Label record signings they often post their music on social media but because they have a small fan
• 23:00 - 23:30 base they don't get enough exposure so we believe this is where 88 Rising as the asian-centered company can help them and utilize the opportunity to attract them for potential signing and we believe 88 raising will have the expertise yeah and just to add on to what my colleagues said um with regards to your question of how we specifically would stand out against larger companies I think what Ada Rising does quite well is that it provides a
• 23:30 - 24:00 lot of flexibility in terms of its contracts because it's a very like close-knit and it's a much smaller company so usually with companies like Universal or Sony the contracts are very binding and they tend to be have a lot of obligations in return and although we're not saying that we would not have this contract I think we would provide a lot more flexibility and I think this is a very attractive factor for artists especially when they're starting out
• 24:00 - 24:30 because they want to be able to have the opportunity in the only content creation but also in terms of the timeline that they're working with 88rising thank you thanks uh so my question is because I I think there's some uh something I was thinking when I look at the model is uh imagine about a fun day you mentioned about you are going to issue 600 million uh convertible bonds to fully expansion
• 24:30 - 25:00 and you're also mentioned in the model is that you have a very focused group of customers in your mind and um so I think can I get some results from you just how to connect with your strategy which is expansion strategy and also to your very focused uh cultivate or to a customer kind of penetration perspective how you're connected to because what I see is you're trying to expand but your
• 25:00 - 25:30 customer base is very targeted yes thank you so much for your question and we definitely see how um it might be a bit confusing as we still very much focus on the existing customer base of young Asian Americans and also to appeal to them through this really Asian Centric music so in regards to how we are using this to still link to expansion uh we are recognizing that this Market is still not fully saturated
• 25:30 - 26:00 and that the Asian demographic and the Asian American demographic does make up a significant proportion however we see that 88rising has definitely taken measures to be on the right track to try to appeal to them and show them that their culture is celebrating their cultures by showing showcasing artists that really share similar backgrounds to them but we think that 88rising hasn't fully exploited this yet for instance it does put a focus on Asian rap and it
• 26:00 - 26:30 does have a very impressive roster of artists such as Rich Bryan and joji as well as Nikki but however a lot of these artists may not really represent the whole diversity that the Asian Community actually encompasses and we've also seen that even by seeing Asian artists as specific individuals we relate more closely to people who are from uh the closer countries for example as an Asian myself
• 26:30 - 27:00 I would perhaps I would resonate more closely with someone who's half Japanese than someone who say is from Vietnam that's why we think that 88rising can still attract more artists from a diverse backgrounds in order to really cater to this massive audience that 88rising has yet to exploit and just to add on to my colleague and provide a little more color into why we came up with this number for the external funding is because of really two reasons that we came up with is uh
• 27:00 - 27:30 there's a number one is that given the expertise on usual limited where they uh thrive in both the Apec region as well as North America particularly the US given this large amount of coverage Geographic coverage of energy limited we found it optimal for 88 unites the joint venture between 88rising and audio limited to have enough funding to cover for this diverse geographic region of concert Holdings and so that's the first
• 27:30 - 28:00 reason why it came up with it uh with it with abundant funding amount the second reason is because after the creation of aiding unites we wouldn't only be targeting the uh the very Niche customer segment customer of 88 Rising rather because we are collectively organizing concerts for both 88 Rising artists as well as other smaller record labels um we'll be talking to a larger audience group and so because of this because of
• 28:00 - 28:30 the more frequent concert Holdings that will be held in the future given on the larger artist amount we believe this funding will be the optimal amount for 88 units to sufficiently have enough cash enough Capital to hold uh frequent concerts in the future with a more diverse group of artists yeah so thanks is it if I may just dive into it um I'm very interested in this strategy is because if I bring this to the context is a 600 million pound of bonds
• 28:30 - 29:00 means you need to pay 60 36 million interest expenses it's on six percent not considering the end point when converts to the if they don't convert so what would be your target Revenue um in the short term trying to pay I don't know how much the ADHD Rising make the money that'll Revenue have you investigated do you think they kind of this strategy is Affordable in the short term yeah I think that that's a very public
• 29:00 - 29:30 turn unfortunately we weren't able to find actual financial information uh for any Horizon specifically because they're a private company and it was a rather small company and they have no obligation to release any of their public information however we were able to find some contacts uh for on your limited fortunately which is a public company and their revenue um to be very honest their revenue has been a decline in trend for the recent years but we believe that this is going to return to an uh increasing Trend uh
• 29:30 - 30:00 because this decline in the recent few years is mainly because of the covid-19 impact on the concert industry and so um if you take a look at their pre-covered numbers um it is over 100 million HKD uh this this company itself is um listed in Singapore so if you convert the Singapore dollars to Hong Kong dollars it is over 100 billion um HKD and their cash amount while it has also declined it is enough to pay off it is larger than 33 million HKD so
• 30:00 - 30:30 it is large enough to pay off um the first year is uh interest expense is given 88 unites um uh bonding structure and so we believe that uh firstly there is this macroeconomic promise um that 88 units energy limited will be holding sufficient constant in the future uh given the recovery from covet and secondly that despite the declining Trend in the fundamentals for energy limited they still have enough
• 30:30 - 31:00 cash and that their revenue will still increase in the future enough to pay off the interest expenses required for the funding of 88 unites I have a question yeah um can you go back to the patient affiliate yeah I I remember you mentioned about the JV with concert holding companies to launch
• 31:00 - 31:30 more concerts right that that is part of the plan on affiliate itself yeah I I'm just wondering like we chill for see any challenges yeah um having this JV with this concert holding company to launch further concerts um course point of view and uh and also other aspect operational aspect yeah and and beside you know jving with um concert holding company what are your
• 31:30 - 32:00 thoughts on other other um initiative you know similar initiative yeah yep so I think I can take that question uh so we I think we mentioned in the uh risks and mitigation section that we obviously need to incentivize unusual limited to actually conduct this joint venture with us because it is a big investment and concerts by Nature they require a very upfront payment and a
• 32:00 - 32:30 very long-term uh technical expertise in logistical planning so in that case we really need to incentivize unusual to ensure that they have appropriate return but we think that because we've um as my colleague has mentioned that amid their like decline in recent years if we provide them with the artist pool uh the existing kind of enthusiasm that 88 unite has with its artists uh it actually conducted something similar with their head in the clouds concert
• 32:30 - 33:00 recently uh we think that we'd be able to really take their company to the next level because so far they've been giving logistical expertise they've been giving technological expertise but they lack that exposure and since 88 unite is a marketing company they're experts in how to cater to the Asian American Community we think that incentive is uh more than sufficient and based on percentage as well we're giving them uh like it's 51 to 49 so in that case we think there's
• 33:00 - 33:30 more of it's split quite evenly in terms of the returns yes and just to Echo what my colleague uh mentioned we think that if in the case that um the negotiations might take longer than usual or maybe unusual limited is turns out to not be the most appropriate company something we can do more immediately in the short term is to hold smaller scale concerts for example maybe even gigs in um for in to really add color to the
• 33:30 - 34:00 night scene that these young Asian Americans are familiar with for example in bars or even in restaurants we'll have a jazz planner and we think that something like this can still help to showcase a similar kind of vision but it also also can help to address any cost or Synergy concerns that may arise thank you yeah Jason Carrie any last question
• 34:00 - 34:30 we only have one minute so we need a very quick question and very succinct answer no question from me all good um students who want to add sorry go ahead okay um so what one of the case questions is asking about striking the balance between control and scale just want some quick thoughts from the team on this
• 34:30 - 35:00 thank you yeah I think I can try answering the question that's a really great question that you brought up um we will be maintaining control whilst also uh increasing skill as shown through our affiliate solution and and how we maintain control is really by 80 Rising maintaining that 51 uh dominant shareholder and the reason why you gave 88rising a 51 dollar shareholder is because we wanted to make sure that 88 Rising when it comes to management rights has a say in terms of how to really design these concerts how to
• 35:00 - 35:30 manage the different artist polls and so by providing them with this flexibility we believe that ADA Rising will continue to have its stay and its control over uh this new affiliation 88 units I hope this answer the question thank you thank you everyone um dear students we will place you in the waiting room and we will bring you back for the feedback session