musicshake

socalTECH – Interview w/ Kihong Bae

socalTECH라고 Southern California (남가주라고들 하지…미스 남가주라고 하면 더 잘 알라나..)에서는 꽤 인기 많은 tech blog 사장 Ben Kuo를 최근 한 네트워킹 행사에서 만나서 인터뷰를 했는데 역시 실제 인터뷰 내용보다 한 5x 정도로 좋은 말들을 많이 써줬다..나도 빨리 유명해져야지 ㅎㅎ. Full 기사는 여기서 읽을 수 있다.

We recently ran into Kihong Bae, who is general manager of MusicShake (www.musicshake.com
), a startup focused on allowing users–with no music training–to create their own music online. The firm–which started in South Korea–recently opened up its U.S. operations here in Los Angeles. We spoke with Kihong about the company, what it offers, and why it decided to locate here.

Describe what MusicShake is, and how it came about?
Kihong Bae: We are originally from South Korea, where we have been around for three years. We just opened up our U.S. operations in Los Angeles about three months ago. What we do, is we provide a very simple, and intuitive online tool that lets the general user–music dummies like myself–create their own music, in a very easy and simple way. The way we do it, is we provide a huge library of pre-defined music patterns. Currently, we have 350,000 different patterns, categorized by different genres, instruments, and even by vocals. For example, the vocals are categorized by whether they are female, male, are humming only, or are hard vocals, soft vocals, rap, etc. The good thing about our service, is that our modules are made by our own, in-house musicians, so we own all of the copyrights. In other words, you don’t have any copyright issues with using our music. You can create your music using a simple matrix, and you choose different modules by clicking on them to active or deactivate them. In about five minutes, you can come up with very creative and professional sounding, quality music.
The way we do that is through an algorithm running in the background–which we call the Mubot — standing for Music Robot — which is an automatic harmonizer. When you play separate instruments–for example, a guitar and piano–separately, it might sound good. But, if you play them together, it might not sound together as good as when they were played separately. That’s why in a band, they keep changing the positions of different instruments, and adjust volumes of those instruments. Our music robot and algorithm automatically adjusts everything, so whatever you do on Musicshake it always sounds good. One good quote from our users is–you actually have to try hard to make something on Musicshake that doesn’t sound good.
After you make the music, what do you do with that? You can share it with your friends, put it in as background music for your online videos and slideshows, export them into a ring tone, put it on a social network, such as putting it on your Facebook as your profile music. We are trying to build something that is an easy to use, user generated music tool, and at the same time, create a global community around user generated music.

You mentioned you’re allowed to put your creations into online video?
Kihong Bae: That goes to the business model. Everything you do online is all free. You can make as much music as you like, and you’re free to post it, share it online for free–but once you decide to download your music as an MP3 file–where it’s physically on a PC–that’s when we charge people. You can buy your own music, but you can also buy another person’s user generated music if you like. If you do that, we give a percentage of that revenue to the original creator. In that way, it’s an incentive to make better quality music.
The paid service has already launched in Korea, but we are not launching that until June in the U.S.

Speaking of Korea, it seems like there’s a phenomenon of Korean games, software, and technology being constantly imported into the U.S. Why is it that Korean technology seems to be on the forefront of this market?
Kihong Bae: I guess it’s because of the high Internet broadband penetration rate. We have had the number one penetration rate in the world, though recently I think we might have slipped to number 4 in the world recently. Almost everyone gets 100 Mbps Internet at home these days. That fast Internet connection means that getting access to whatever content you want, in high quality from home or the office, is taken for granted in Korea.
The initial idea we had in the beginning, was to allow general people to be able to experience the ecstatic feeling that only a few singers or artists feel when they perform in front of other people. We were thinking to ourselves–couldn’t there be an easier way for people, who don’t know anything about music, to create their own pieces, but in a very easy and intuitive way? That’s also when the whole Internet and online phenomenon started to boom. The reason this has worked out fairly well in Korea, is all of our founders were all Korean, and have a unique blend of experience both in information technology and also the music industry. My other founder used to be an ex-musician and professional sound recording engineer, and also founded one of the earliest Internet streaming services in Korea. that unique set of talents, combined with the high hunger for technology taking place in Korea, plus the Internet/broadband penetration, facilitated the beginning of this in Korea. It’s not surprising–the whole social networking phenomenon, in Facebook and MySpace–originally came from a service called Cyworld in Korea. Cyworld came up with the whole idea of making other people your friends, sharing, and being able to leverage connections and degrees of connections.

Why did you decide to base your US headquarters in Los Angeles?
Kihong Bae: There are two reasons. One, is obviously we want to become a destination site. We want people to come to our site as a destination, instead of just using it as a tool to make music. The whole thing has got to do with media and entertainment, and it was actually very natural to look into Los Angeles as the hub and center of media and entertainment. Some people have asked us–why not New York, where media and entertainment is also big? What is unique about Los Angeles, is it has media and entertainment, plus the Information Technology revolution we’ve seen taking place in the last couple of years. Before that, it was Silicon Valley, where most IT came out of, but we are seeing more people starting companies in the Los Angeles area–especially in media and entertainment related areas. That was our main decision factor.
The other decision factor, is our major investor is the Korean online gaming firm Nexon. Their U.S. operations are als in LA. I thought it was natural to leverage the strategic relationship, and to be headquartered in Los Angeles. We’re actually in the same building as Nexon. Those are the two main reasons, but another minor reason is that there is plenty of talent here–not only engineering talent, but a good blend of media and entertainment, and music, plus Internet and technology background.

So is the service now live in the U.S.?
Kihong Bae: We’re still in open beta. Our U.S. services have been up since last September, although we don’t have too much traffic yet. We have about 13,000 registered users in the U.S. so far, with average unique visitors of 15,000.

What are you working on in your beta?
Kihong Bae: What we are trying to focus on right now is on the application–we are trying to build out more music modules–we have 350,000 modules–and we are releasing new modules every quarter. This summer, we are going to be releasing tens of thousands of new modules for Latin music. After that, we also have plans for Irish music, and other expanding genres to capture a wide age demographic. At the same time, the business is not only about music, but also about building a community around music. We’re building more sophisticated social networking features.
In June, we will be launching the paid services. We’re also launching our own blog, Shakeblog, which is going to be focused on user generated music. On the blog, you’ll be able to have your own profile, and your own albums, and your own playlists. I think it’s a good move because the social networks are all becoming the same — they all have a picture, allow you to have friends, and a page where people can come in and comment on it. It’s about time someone put a creative twist on social networking. We are also going after Facebook, MySpace, and other social networks where most of the users hang out, and are building out Facebook, MySpace, Imeem, and other widgets for those social networks.

Thanks for talking with us!

Musicshake, Inc.

친구들이나 주변 사람들이 다음 질문을 많이 한다. “뮤직쉐이크는 IT 벤처기업인데 왜 실리콘 밸리가 아니고 LA에 미국 사무실을 세우셨나요?” 음…안그래도 실리콘 밸리의 광팬인 내가 왜 LA로 왔을까…여기에는 몇가지 이유가 있는 가장 두드러지는 이유 두가지는 다음과 같다.

1. Musicshake, Inc.는 IT 기업이지만 전통적인 벤처 기업과는 그 성격 자체가 약간 다르다. 인터넷과 기술을 기반으로한 종합 엔터테인먼트 회사이다. 즉, IT+음악+media/entertainment의 성격을 가지고 있는 매우 혁신적인고 disruptive한 회사이다. 실리콘 밸리는 벤처의 메카이지만, 아직까지 할리우드가 있는 LA야 말로 media and entertainment의 중심지이기 때문에 LA로 결정을 하였다. 물론 뉴욕 또한 media & entertainment 산업이 매우 발달 하였지만 아직까지는 LA를 따라올 수 없다고 생각한다.
2. 또다른 이유는 전략적인 이유에서이다. 우리가 Series B 투자를 받을때 운이 좋게 한국, 아니 세계 최고의 온라인 게임 회사인 넥슨 (아마 넥슨은 몰라도 “카트라이더”라는 게임은 알것이다. 바로 카트라이더를 만드는 회사이다)에서 참여을 해서 현재 넥슨은 뮤직쉐이크의 주주 중 한 명이다. 넥슨 아메리카 사무실이 LA에 있는데 현재 Musicshake, Inc.는 넥슨 아메리카와 같은 건물에 있다. 이거는 많은 의미를 내포하고 있다. 많은 사람들이 strategic investment (전략적 투자)라는 말들을 많이 하는데, 아직까지는 나는 제대로 된 전략적 투자 case를 본적이 없거든..말들은 전략적이라고 하지만, 실제로 까서 보면 그냥 money-in, money-out 게임이다. BUT! 넥슨 – 뮤직쉐이크의 경우는 조금 다르다. 아주 classic한 전략적 투자의 좋은 예시이다. 이 블로그에서는 모든걸 말해줄 수는 없지만, 앞으로 넥슨과 많은 일들을 같이 할 계획이며, 온라인 게임과 user generated music은 아주 완벽한 궁합이다.

하여튼, 내가 말하고자 하는 요지는 이 새로운 생활과 opportunity에 매우 기대를 많이 하고 있으며 아주 재미있는 일들이 앞으로 생길거라는 예감이 팍팍 든다…역시 나는 학교에서 탁상공론하는거 보다는 현장에서 몸으로 경험하면서 뒹구는게 더 어울리는 거 같다.

당분간 블로그는 쉬도록 하겠습니다

나도 몰랐는데 이 블로그를 읽으시는 한국 독자분들이 생각보다 많다는 걸 최근 깨달았다. 모르는 분들이 이 블로그를 보고 와튼이나 MBA 전반적인 부분에 대해서 많은 질문을 하는 걸 보고 다시 한 번 인터넷과 crowd intelligence의 힘에 대해서 감탄을 하였다. 이렇게 traffic이 많으니 이제부터는 이 블로그를 통해서 광고 수익을 벌 수 있지 않으냐는 생각도 하였지만 ㅎ 당분간 이 블로그 운영을 중단해야 할 거 같다. 아마 이 글이 한 2년 동안 마지막으로 쓰는 글이 될 거 같다.

그동안 도와주던 뮤직쉐이크의 미국 비즈니스를 full-time으로 운영하기 위하여 학교를 떠나기로 드디어 결심하고 2월 20일 범죄의 도시 필라델피아를 떠나서 천사의 도시 LA로 이사를 왔다. 학교에서 배운 cost-benefit/break-even/opp’ty cost analysis 등을 통해서 많은 고민을 하고 내린 결정이니만큼 후회는 없으며 인생 최고의 기회를 잡기 위하여 막상 바닥에서 다시 뭔가를 시작한다고 생각하기 흥분까지 된다. 실은, 와튼 오면서 당분간 다시는 벤처기업일은 하지 않는다고 다짐을 하고 왔지만, 나는 역시 뭔가 unstructured된 조직에서 맨땅에 헤딩하면서 일을 할 때가 가장 행복한 거 같다. 아마 2010년에 다시 와튼으로 복학하지 않을까 싶으며 그때부터 다시 이 블로그를 운영할 거 같다.

Thanks to all the readers out there.

Interview with Kihong Bae of Musicshake

몇 일전에 TrenchMice라고 하는 블로그의 Nicholas Katers라는 기자와 간단한 인터뷰를 하였다. 뮤직쉐이크에 대한 질문 및 뮤직쉐이크라는 벤처기업의 문화에 대한 질문이 대부분이었는데, 방금 live 된거를 보니 역시 기자답게 아주 stylish하게 글을 쓴거 같다.

I recently spoke with Kihong Bae, the general manager of the burgeoning startup Musicshake based out of Seoul. The company produces software that helps musical novices and computer users create music using tools that require no formal training. I found out that Musicshake is expanding this year into the United States from Korea in an effort to expose a larger market to the company’s products.

My interest in getting some inside information on Musicshake led me to ask about Kihong’s management style. The 20 full time professionals are given plenty of freedom on a daily basis to finish their part of each project. Kihong explained that the tight schedules and budgets make specialization important. Musicians, programmers and freelancers are given a set of expectations that need to be met in order to complete projects. The effusive manager said that each employee needs to act like they are running “their own company” in order to make Musicshake projects their own.

The only way that this startup has been able to grow is by hiring the right employees. Kihong Bae says that incoming workers need to share in the “culture” of Musicshake. The creative flow inherent in creating music production software makes an immediate connection between new employees and old hands at the company a necessity. Kihong described the urgency of hiring smart, principled employees by saying: “This is a fast changing industry, you can’t spend tons of time preparing and predicting the future. You should just do it, and make modifications as you go along. We are a very horizontal organization where we talk less and do more. The rest just falls in place when you lead by executing.”

I know that questions about management style can be answered to reflect kindly on a manager’s approach. I dug further into Musicshake’s origins by asking Kihong about influences from past ventures. The lessons he learned from past businesses showed that his original contention about an efficient workplace with a casual feel were heartfelt. Kihong spoke about the need to keep ventures “lean” and bring in enough cash to keep the business on sound footing for the near future. A combination of smart borrowing and revenue generation from opening day has made Musicshake a success.

My favorite question to ask a business owner is how they balance industry news with their own intuition. I asked Kihong Bae the industry sources used by Musicshake to get a read on the online music industry. Kihong responded with several publications from business schools including the Harvard Business Review that would make this manager seem conventional in his approach to business. His use of blogs like VentureBeat and TechCrunch gives him a nudge outside of the box.

The final line of questioning involved the sales pitch of Musicshake to skeptical investors and customers. Creation of software and widgets, after all, can be a difficult thing for the average consumer to wrap his head around. Kihong Bae responded by stating that the lack of language and geographical barriers to music along with the company’s proprietary program make Musicshake a company with unlimited potential. The success of this venture in the 2007 Crunchies and its place as a finalist in the TechCrunch40 seems to be the closing number for Kihong Bae in making his appeal to potential business partners.

I have a favorable projection for Musicshake in the future. The success of a startup trickles from the top down and Kihong Bae has a clear vision for the company’s future. It is difficult to project the success of electronic products but the employment of musicians lends credibility to the company’s software. The only roadblock I see for Musicshake comes with the saturated market for software development in the United States. If Kihong Bae can lead Musicshake through 2008 and 2009 successfully, watch out for this company as “Guitar Hero” fans get their hands on new software to make real music.

The Crunchies 2007

Crunchies2007

서부답지 않게 우중충하고 매우 흐린 날씨이지만, 날씨와는 다르게 화창한 소식이 있어서 블로그를 통해서 독자 분들에게 소중한 투표를 부탁드리려고 한다. 올해 9월 18일 샌프란시스코에서 진행되었던 TechCrunch40에 이이서 뮤직쉐이크가 이번에는 미국 실리콘 벨리가 선정한 2007년을 빛낸 100대 IT 기업에 선정되었다. 공식 행사 명칭은 The Crunchies 2007이며, 실리콘 밸리에서 가장 영향력 있으며 일일 통합 독자 수만 약 2백만명이 넘는 4대 technology blog인 TechCrunch, GigaOm, Read/WriteWeb VentureBeat 가 공동으로 주최하는 실리콘 밸리 역사상 최초의 행사이다. 행사 성격은 한 해 최고의 영화 및 배우들의 공로를 인정하는 Academy Award와 비슷하며, 2007년 한 해 동안 가장 혁신적인 영향력을 행사한 인터넷 및 기술 관련 벤처기업들의 공로를 인정 및 시상하는 것이 이 대회의 취지이다.

Web 2.0의 기본 사상인 참여 및 공유 정신에 입각하여 모든 후보 및 최종 수상 기업 선정은 100% 일반 독자들의 투표에 의하여 진행될 예정이며 최종 수상 기업 발표 및 시상은 2008년 1월 18일 (금) 샌프란시스코의 Herbst Theater에서 최종 후보들, 주최측 4개사, 각종 언론사 및 일반 관객의 참석하에 진행된다. 행사 비용 전액은 어도비, Charles River Ventures, Mayfield Fund, 마이크로소프트, OurStage썬 마이크로시스템스가 스폰서쉽 형태로 부담한다. 12월2일부터 12월 12일 열흘 동안 일반인들은 웹사이트를 통해서 2007년 한 해 동안 IT 업계에 가장 큰 영향을 미쳤다고 생각하는 벤처 기업을 자유롭게 추천할 수 있었다. The Crunchies 위원회에서 미리 정의한 20개의 분야 (Best user generated content start-up, Best international start-up, Best overall 등)에 각 한 개의 기업 추천이 가능하였으며, 약 82,000개의 추천을 받았다고 주최측은 밝혔다. 이 후 The Crunchies 2007 위원회는 82,000개의 후보 중 추천 횟수와 벤처 기업을 평가 하여 각 분야에서 5개의 결승 진출 기업을 선정하여, 12월 21일 100개의 최종 후보를 발표 하였다. 여기에서 뮤직쉐이크는 Best international start-up 분야에서 당당하게 유일한 아시아의 벤처기업으로 선정되었으며, TechCrunch의 Heather Harde 대표이사가 나와 주고받은 이메일에서 “작년 9월 TechCrunch40 행사에서 신선한 충격이었던 뮤직쉐이크가 이번 행사에서도 실리콘 밸리를 강타하길 바란다”라는 말까지 직접하였다. 다른 후보 중에는 이미 우리에게 너무나 익숙한 Facebook, DiggYelp와 같은 실리콘 밸리를 대표하는 굴지의 Web 2.0 인터넷 기업들이 포함된다.

최종 투표 과정은 다음과 같다. 12월 21일부터 웹사이트를 통하여 일반인들은 하루에 한 번씩 본인이 원하는 벤처기업 투표에 참여할 수가 있으며, 인터넷 투표는 2008년 1월 10일까지 웹을 통해서 공개된다. 페이지 상단의 뱃지를 클릭한 후 5개의 Best International Start-up 후보 기업 중 Musicshake를 꾸욱 눌러서 voting을 모든 독자 분들에게 부탁 드리겠습니다.