A presentation held in the Nordic Lighthouse Seminar - The Future of Creative Economy in Nordic Countries.

2. Speech:
 10^7 bits
 Tribes
Writing:
 10^11 bits
 City cultures
Printing:
 10^17 bits
 Renaissance
 Industrial society
Digital:
 10^25 bits
 ??? culture
Donald Robertson: New Renaissance

3. Gutenberg Encyclopedia
… but our brains are still in the
speech learning stage

4. The Future Is not What It Used to Be
Jyrki J.J. Kasvi
Finnish Information Society Development Centre

5. Digitalisation revolutionises everything!
Content industries are just among the first ones to face the new realities...
…along with banking, stock market, agriculture, logging, …

6. Image: Lely
The milk you had with our latte was probably milked by a robot.
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7. During the next two years, the calculating
power of humanity is going to double.
We ain’t seen nothing, yet.

8. The way it used to be
Content
Products
Money
Money
Support
Creative work Publishing industry Consumer

9. FindMySong
Creative work
Logic Pro
Support sevices
YouTube
Blogs
Spotify
Netflix
Kindle
Consumer
Service
providers
Content
Network
operators
And then it got complicated
Soundcloud
Content
Services
Money Money
Fandom & merchandise
Crowdfunding
Kickstarter
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10. 5.9.2014 TIEKE Tietoyhteiskunnan kehittämiskeskus ry 10

11. Please do not shoot the messenger!
Who is just pointing out the reality for you.

12. CC 2.0 BY Paul Downey
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13. New technology is always both
a challenge and an opportunity
 Printing press destroyed monasteries’
economies
 Created publishing industry, popular culture,
journalism, mass media etc.
 Incurred the need for the classic copyright system
 Enabled Renaissance and Reformation
 Phonograph destroyed performance based music economy
 “Everyone will have their ready-made or ready-pirated music in their cupboards.”
- John Philip Sousa, 1906
 Created record based music industry as we remember it
 Digitalisation destroyed material content industry…
 … and is creating a totally new content service industry
 Challenges the classic copyright system, calling for new digital business models
Printer in 1568, Public Domain
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14. Shifting Waves Gallery in Second Life
New playing field
We agree on our goals
 To maximise content
creation and usage
 Expansion of culture
 E.g. the original goal of the patent system was to encourage spreading
and usage of new inventions -- expansion of economy
 To ensure livelihood of content creators
 How about livelihood of stock holders of media companies?
 To advance the emergence of new forms of content, expression
and culture
 Crowdsourcing, rip-n-mix, mash-up etc. vs. copyright
The best ways to reach these goals are still under (fierce) discussion
 It took 300 years for the old copyright system to take form

15. For example, freemium business models
 The most popular mobile games in the world are free
 Over one billion downloads
 The most popular search engines, map services and email services are free
 But Facebook and Google are not charities!
 The most popular Internet multi player game is free
 Over 35 million registered players
 One of the most awarded comics in the world is free
 E.g. Hugo in 2009, 2010 and 2011
 The most watched Finnish movie is free
 3,5 – 4 million downloads in 2 months
 Technology has always improved productivity and cut prices,
also in content industries, now almost to nothing …
 Free is a new way to make money! (but not an easy one)

16. New challenges
 Content consumers
 Have access to unprecedented selection
 consume content more than ever
 have become content creators
 Interact with content creators
 Can choose most cost effective sources
 Content creators
CC BY SA 2.0 Sergey Galyonkin
 Find themselves in a new, revenue poor business environment
 Have access to global markets and face global competition
 Get income from the “long tail” of their works
 Find new digital markets like computer games and augmented realities
 Content creates (advertises) attention but it needs to be turned into a cash flow
 Publishing industries
 Must do or die and become service industries
 Support functions become independent business serving the creators
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17. Digital content revolution
 Internet has already replaced television
 Finns spend as much time in Internet as watching TV
 E-readers replace papers and books
 Bookstores are facing the fate of record stores as
newspapers and literature are becoming cloud services
 Only a third of Danes are still reading paper newspapers
 Games have been a bigger industry than movies for over 10 years
 Finnish game development industry needs 600 new employees every year!
 Mail delivery is ending
 Paper invoices and newspapers are disappearing
 Online shopping deliveries replaces letters
 Libraries either disappear or become digital media centres
 Is culture becoming a privilege of the rich, again?

18. CC 3.0 SA BY Sebastien Delorme
Cultural revolution
• Digital divide becomes
activity divide
• ICT gives active people new means to be
even more active members of the society
• Gives passive people new means to be even more passive
• Digital culture is easily overlooked
• A whole Finnish generation was in Habbo Hotel and IRC Gallery before traditional
media and society caught on social media
• Over 100.000 Finns were playing Internet poker before society took notice.
• What cultural phenomenon is going on at the moment without us noticing it?
• Technological imperative
• Everybody has to be able to use ICT in order to be a member of society
• ICT and digital services have to available, accessible and usable
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19. The fun times are just beginning
 Electronic paper
 Soon almost free.
 Augmented reality
 Replaces smart phones
 Man-machine interface
 Implants are already used to cure illnesses
 Body function monitoring and biohacking
 Artificial intelligencies
 E.g. already more than half of stock trading
 Robotics
 Car manufacturers have announced that
the first models come by year 2020.
Google
Imec & CMST
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20. The future is already here
UC Berkeley

21. Sukupuolten välinen digikuilu?
Discussion
U.S. Army Photo
30.9.2010 www.kasvi.org 21