Futurist Gerd Leonhard on Open is King - The Future of Music, Canadian Music Week 2008

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"Let's face it: controlling the digital distribution of music is over. In addition, the Web is forever changing music production, promotion, marketing and even A&R, as well. Any and all music is now available online, permitted or not, streamed or downloaded - if anyone still cares for making that distinction. And as of early 2008, the snake-oiled idea of DRM and digital copy protection is finally, officially, irrevocably, toast, too. The battle for digital control has been lost. For those digital natives, access to music is already replacing ownership. Radio - as we knew it - is now playing second fiddle to Online Social Networks, and the kids are tuning out of MTV & VH1 and into free, web-based, shortform TV like YouTube. Flat rate music proposals are being discussed around the globe, and gathering steam. Now, the key question is this: how can music creators get paid (and indeed, prosper!) in a world of open access, feels-like-free, paying-with-attention, a world where telecom operators, search engines and online giants run the show? How do we make money after we give up control (and it certainly looks there is no other choice)? In his keynote, Gerd will talk about why it is crucial to welcome this change, and let go of the idea of controlling the digital flow of music, and where the new cash will come from - and lots of it, too..."

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Futurist Gerd Leonhard on Open is King - The Future of Music, Canadian Music Week 2008

  1. 1. www.mediafuturist.com Gerd Leonhard gerd@mediafuturist.com www.mediafuturist.com Presentation at Canadian Music Week 2008 Open is King: The Future of Music Saturday, March 8, 2008 1
  2. 2. Nice start but.... where is it going? www.mediafuturist.com ITunes Worldwide Potential Saturday, March 8, 2008 2
  3. 3. www.mediafuturist.com Maybe we’ve got this the wrong way ‘round ? Rather then try and sell music in the particular way that WE want to sell it, we must finally start offering it IN THE WAY THAT PEOPLE ACTUALLY WANT TO BUY IT. Saturday, March 8, 2008 3
  4. 4. www.mediafuturist.com This has been the music industry’s response to almost all new ways of using music With detrimental consequences for the Artists and Writers Saturday, March 8, 2008 4
  5. 5. www.mediafuturist.com Saturday, March 8, 2008 5
  6. 6. www.mediafuturist.com More Protection will kill us. Engagement will allow us to prosper. A lot. Saturday, March 8, 2008 6
  7. 7. www.mediafuturist.com DISRUPTION Disruption is good. Disruption is inevitable. Disruption is where we must to put our money. Disruption in the Music Industry = the Creators and the Users are taking back Control. Which side are you on? What do Amazon Google Nokia Sirius/XM Wordpress Linux Skype Wikipedia Craigslist Apple Facebook Last.fm Tivo Netflix Easyjet .... have in common? Saturday, March 8, 2008 7
  8. 8. www.mediafuturist.com Everywhere else, the shift from Closed to Open is in full swing Saturday, March 8, 2008 8
  9. 9. www.mediafuturist.com The Abject Failure of Music Protection & Control Trying to control digital distribution via technical protection measures (DRM / TPM) has FAILED and trying to control digital distribution via the Networks will fail, too. 1 3 2 Saturday, March 8, 2008 9
  10. 10. www.mediafuturist.com Saturday, March 8, 2008 10
  11. 11. www.mediafuturist.com Saturday, March 8, 2008 11
  12. 12. www.mediafuturist.com Saturday, March 8, 2008 12
  13. 13. www.mediafuturist.com This attitude is what is killing the record industry Saturday, March 8, 2008 13
  14. 14. This has to end now www.mediafuturist.com Saturday, March 8, 2008 14
  15. 15. It’s time for a Change www.mediafuturist.com Saturday, March 8, 2008 15
  16. 16. www.mediafuturist.com A message to the IFPI BPI RIAA CRIA: Say Goodbye to the world of Scarcity Saturday, March 8, 2008 16
  17. 17. and say goodbye to the dominance of Hits www.mediafuturist.com Saturday, March 8, 2008 17
  18. 18. www.mediafuturist.com The People Welcome to formerly known as Consumers Saturday, March 8, 2008 18
  19. 19. Old tollbooth logic www.mediafuturist.com http://www.repmanblog.com/photos/uncategorized/48750_a.jpg Saturday, March 8, 2008 19
  20. 20. New tollbooth logic www.mediafuturist.com Saturday, March 8, 2008 20
  21. 21. www.mediafuturist.com consumers will Pay with Attention Music Paid with Attention Yes - attention is real Money Saturday, March 8, 2008 21
  22. 22. www.mediafuturist.com Saturday, March 8, 2008 22
  23. 23. www.mediafuturist.com For the creators For the Users Feels Like Free Saturday, March 8, 2008 23
  24. 24. www.mediafuturist.com Saturday, March 8, 2008 24
  25. 25. www.mediafuturist.com Sync TV Live Licenses Film Concert Webcasts Games Recordings Social Sponsorships Networks UGC Advertising Revenue Share Tickets Product Placements Saturday, March 8, 2008 25
  26. 26. www.mediafuturist.com But we have to offer a license to the networks first, and enable a Flat Rate that legalizes the ubiquitous use of music Saturday, March 8, 2008 26
  27. 27. The Future of Content www.mediafuturist.com *Inspired by Kevin Kelly Copies of digital content will Feel Like Free Context is not The Experience is not Packaging [Alt Out] is not Curation is not Saturday, March 8, 2008 27
  28. 28. www.mediafuturist.com Kevin Kelly: The key is to offer valuable intangibles that can not be reproduced at zero cost, and will thus be paid for: 1. Immediacy - priority access, immediate delivery 2. Personalization - tailored just for you 3. Interpretation - support and guidance 4. Authenticity - be sure it is the real thing? 5. Accessibility - whereever, whenever 6. Embodiment & Experience 7. Patronage - quot;paying simply because it feels goodquot; 8. Findability & Curation Saturday, March 8, 2008 28
  29. 29. Let’s start sharing in those revenues! www.mediafuturist.com Start giving PERMISSION Saturday, March 8, 2008 29
  30. 30. www.mediafuturist.com And once 4 Billion phones are connected Saturday, March 8, 2008 30
  31. 31. www.mediafuturist.com Saturday, March 8, 2008 31
  32. 32. Let’s take a look at Google www.mediafuturist.com Content Content Content Content Content Content Content Content Content Saturday, March 8, 2008 32
  33. 33. www.mediafuturist.com Search IS Media -what better place to offer your music? Saturday, March 8, 2008 33
  34. 34. www.mediafuturist.com So why isn’t Google licensed for music yet? Saturday, March 8, 2008 34
  35. 35. www.mediafuturist.com A huge opportunity all we need to is to actually PROVIDE THE MUSIC Saturday, March 8, 2008 35
  36. 36. www.mediafuturist.com How could music NOT make more money in the Future? We just need to adapt and participate Saturday, March 8, 2008 36
  37. 37. Cheaper Music = More Revenues www.mediafuturist.com Source: Wired / Chris Anderson Saturday, March 8, 2008 37
  38. 38. www.mediafuturist.com 2% of the consumers have engaged so far 4 Billion songs sold on iTunes. 4 Billion songs ‘sold’ on Yahoo, Napster, Rhapsody et al 400 Billion Songs unsold. Saturday, March 8, 2008 38
  39. 39. So, do we need more of this? www.mediafuturist.com Saturday, March 8, 2008 39
  40. 40. Or more of this? www.mediafuturist.com Saturday, March 8, 2008 40
  41. 41. www.mediafuturist.com Saturday, March 8, 2008 41
  42. 42. www.mediafuturist.com Thanks for listening! www.mediafuturist.com www.music20book.com skype me anytime: gleonhard Saturday, March 8, 2008 42

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