By Gerd Leonhard, CEO, Media Futurist (Switzerland) Learn how other content industries - from software to news/publishing, games and radio - are creating innovative approaches to make money in new ways with their content.

1. www.mediafuturist.com
twitter.com/gleonhard
Content 2.0
How Content Industries Find
New Ways to Generate
Revenues

2. www.mediafuturist.com
What I do: www.twitter.com/gleonhard

3. New ways to do business
New ways to sell content

4. Please note:
there are no recipes -
adapting these examples is crucial!

5. 2010: the year of Mobile, Apps and
the Tablet...?
Cross-media content, new packages and
New Revenue Models
Source: Gizmodo

6. Magazine Publishers & Tablet PCs
Source: Bonnier / Vimeo
Selling the Interface
& the Packaging

7. Learnings from
• Are tablets and mobile devices ‘the new paper’?
• It’s the content mix and the UI that makes it engaging
Music industry translation:
• Mobile & Tablet Devices... the next CD Players?
• Explore cross-media options, offer engaging
packages at very attractive pricepoints
Take note!
It’s no longer only about the music - and
pricing will need to be very aggressive

8. Salesforce.com: Software as a Service
• On-demand software that helps manage customer information
for sales, marketing and customer support
• No software is downloaded and installed; everything is online
(no ownership - all access-based)
• Revenues grew even during the recession: $ 1.29 Billion in
2009, 70.000 corporate customers

9. Learnings from Salesforce.com
• Everything is moving to the Cloud; selling
access to the cloud has real potential
• Having many different price plans is crucial to
success: offer something for everyone!
Music Industry translation:
• Connect the crowd and the cloud - sell access not (just) copies
• Get started at a very low price, and then move up
Take note!
Selling access is a different game, altogether!

10. O’Reilly Safari Books
• Unlimited
access to
10.000 technical
books online, for
$42.00 / month
• Added values:
videos, rough-
cuts, mobile,
collaboration
tools etc
• 15 Million +
users, out-sells
all other O’Reilly
offerings

11. Learnings from
• Their motto: “create more value than you capture”
• Reach out to competitors to innovate together
Music industry translation:
• Sell access to a large library, and add
lots of other values beyond the music!
Take note!
Requires unusual partnerships in order to
provide very deep content offerings

12. Example: Farmville Game on Facebook
• Application exists only on Facebook
• It’s free but you can buy goods to enhance the
experience: 800.000 tractors ‘sold’ every single day
• A team of 15 Developers release new virtual items
into FarmVille twice a week; new features debut
weekly.
• 65 Million+ users without any advertising
• 1.2 Million users per day
• Parent company Zynga makes est. $200M / Year

13. Learnings from
• It all starts with ‘free’
• People will buy anything once they are hooked
• Interactivity and User-Empowerment is key
• Virtual items can be real sources of revenues
Music industry translation:
• ‘Go inside’ the social networks
• Same as above!
Take note!
This requires having a lot more to sell than just
the stream or download of a song!

14. Selling what is ‘free’
somewhere else
• Good quality images
• Finding the perfect photo is
quick and easy
• Rights (licenses) are pre-
cleared
• Low cost
• Projected $200 Million in
2009 revenues
• I have spend $1200 USD
on iStockphoto, myself, in
the past 12 months

15. Learnings from
• If the price is right people will pay for convenience
• The per-unit price is much lower but the total is large
Music industry translation:
• Pre-cleared rights to non-hit content have great potential
• Simplifying licensing, aggregation and curation is crucial
Take note!
Everything needs to be fully automated,
online - no veto rights!

16. Blogs: getting real $ from your readers
“Connect with Fans & Reason to Buy”

18. Learnings from
People pay when they see real
value AND when the price is right
Music industry translation:
People pay when they
see real value AND when
the price is right

19. www.mediafuturist.com
twitter.com/gleonhard
A few extra slides that were
not part of my MIDEM talk

33. “When the winds of change
are blowing, some are
building shelters, and others
are build windmills”
Thanks for your time!
email: gerd@mediafuturist.com
twitter.com/gleonhard
Facebook: gleonhard
more presentations at
www.mediafuturist.com