The business model of American idol is incredible…
It is beyond a craze or a fad it is an extremely successful business model that specializes in market interactivity.
The formula for this business model is relatively simple, imagine a product, create an audience for the product, make the audience feel responsible for the product, and have the audience create the product. It puts on new spin on the old adage, “If they build it they will come.”
As a business model, the American Idol formula eliminates much of the risk normally associated with putting new products on the market. When Kelly Clarkson won the first contest the show’s audience had, through the process of voting for her over a several month period, already found the star they wanted and decided on the appropriate style to match.
When her first single appeared shortly after she was elected, those fans were more than happy to make it a number one title because, after all, they had helped create it.
It’s not hard to invest in something that you were a part of all along. This season 95 million voters had a hand in the selection of David Cook…I am sure his first album will be a double platinum seller…hey forget about the record sales imagine the ad dollars earned with that size of an audience, Coca-Cola, Ford and Apple iTunes!
Simon Fuller the producer and creator from 19 is a genius…I met him here in Tokyo before season 1…he knew then he had a great concept.
The business model has applications apart from the recording industry especially now we so much web interactivity. I hope to apply this model to many more projects soon.