Rawrip is a two-year old firm specialising in technology for selling music online, from recommendation systems to retail applications for social networks.
The site employs 30 people, both full and part time, working across research and development , marketing, label relations and technology. Privately funded and based in Shoreditch, London, Rawrip was founded in 2006 by Vartan Sarkissian, who introduces the site.
Rawrip founder Vartan Sarkissian
Explain your business to my Mum.
"I've tried to explain this "internet thing" to my mum before so I hope I have better luck with yours. RAWRIP is an online music radio and shop where any musician and label can sell their songs and get 100% of the sales money. They can even use our portable shops called RAWSTORES to have their music sold on other websites such as MySpace and Facebook and still earn 100% royalties. So if an artist has a lot of fans on MySpace, they can use our service to sell their music to those fans.<
"Fans can get now over 1m songs you can listen to for free on the website and a lot of free music to download. To assist you with finding new music, we have developed the online equivalent to a personal shopper: 'The Rippler'. You tell The Rippler what artists you like and it will come back with a suggested list of music that has similar features. You can then listen to all this music for free, purchase it, share it or store it in your online library."
How do you make money?
"RAWRIP is based on an ad-funded business model. In the future we will introduce small value-add subscription services but our intention is that everyone will be able to access and use a good portion of the service for free."
Any weird business experiences so far?
"Of course - it's the music business! In one of the first meetings I had with a label in LA, the guy had a pet pig. The little pink creature kept nibbling at my shoelaces whilst I was trying to have a serious business conversation. But we actually ended up doing the deal with him and have his content up on the website."
What's your background?
"I studied classical piano at the age of seven in the Yerevan State Music Conservatory. Later on, after studying management and then media and communication in the UK and the US, I worked at MGM studios in LA. I worked in film for few years before setting up RAWRIP to concentrate on my passion for music. I still try and play music every day."
How are personalisation and recommendation part of your business?
"Personalisation is key to all internet businesses. On RAWRIP, artists and fans can personalise their profiles including blogs, videos, tour dates, etc. 'The Rippler' is central to the service and differs from other recommendation technologies; it does not depend on statistics gathered on the artist but acoustical similarities between songs.
"On a broader scale, recommendation forms an important basis on which we as a young company operate. Recommendations from colleagues, peers and mentors have helped us forge great relationships with partners from legal counsels, musicians to marketing partnerships which have thoroughly benefited our business."
How many users do you have now, and what's your target within 12 months?
"Within a week of launch we had 76,000 unique visitors and have had over 270,000 songs streamed. The site is young but definitely growing, and the next 12 months are focused on maximising this growth."
Name your closest competitors.
"Last.FM and emusic are possibly our closest competitors. Both have recommendation engines but they are markedly different to ours."
What's your biggest challenge?
"My biggest challenge is convincing artists that they really will get every penny from the sale of their songs and that we even cover the costs of the transaction. They think the offer is too good to be true."
Are we in the middle of a new dot com bubble?
"What the dotcom boom showed us was that people had faith in the opportunity that the internet holds. The burst showed us that while it is good to have faith and be excited, it is best to be focused on creating a real business and be grounded. Market opportunities are still there but today we take a far more level-headed approach to setting up, buying and selling online businesses. It is far more competitive."
Which tech businesses or web thinkers are the ones to watch? "Services like Skype, MySpace, iTunes and Facebook have changed the way we live our daily lives. I enjoy using them and keep an eye on their next steps. Nevertheless, we are all curious and fickle creatures, one month something could be 'cool' and next month it's gone."
Where do you want the company to be in five years?
"We aim to be one of the most accessible and comprehensive archives of music from independent, major and unsigned artists. I also believe that the emerging markets are a fascinating new digital domain that has not yet been fully explored."
• Another music distribution service - is there really any money in this?
• What strategy should artists adopt; distribute in as many places as possible, or aim for more exclusivity?
• Isn't the only real growth area in music now in live music?
