www.mediafuturist.com
Open is King
Gerd Leonhard
gerd@mediafuturist.com
www.mediafuturist.com
Open is King - The Future of Media beyond Control
Friday, January 25, 2008 1

www.mediafuturist.com
Open is King
Digital Society Trends
The Past & the Present: obtaining information
(data) and communication was (is) important
The Present / Immediate Future: Content
becomes more important, all the time
Soon: Context / Community / The Experience
becomes the crucial differentiator
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From ‘The Network’ to
Open is King
NETWORKED
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Open is King
Mass Media Decline in terms of PERSONAL relevance
Source: Chris Anderson The LongTail
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www.mediafuturist.com
Open is King
User Generated Content - Context - Conversation is exploding
Friday, January 25, 2008 5

Blogging Trends: Open +++
www.mediafuturist.com
Open is King
Me
MultiMedia
Moments
Mobile
Mashed
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www.mediafuturist.com
Open is King
Open = Engaged
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www.mediafuturist.com
Open is King
Participate or Be Participated
Remix or Be Remixed
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Behind all this change: www.mediafuturist.com
Open is King
The People
formerly
known as
Consumers
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www.mediafuturist.com
Open is King
For them, the web is now a canvas, not a newspaper.
Not (just) a Broadcast but a Narrowcast.
Not (just) a monolog but a conversation
Source: Nokia via Youtube
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Life of 12-24 year olds
Will rarely read a newspaper but are attracted to some magazines
Will never own a land-line phone
Will not watch television on someone else’s schedule much longer
Trust unknown peers more than official experts
Are actually willing to pay for digital content - but Feels Like Free is first.
Perceive community at the center of the Internet experience
Like to pretend they are not interested in advertising or affected by brands
Will shift everything to mobile
Are less interested in television than any generation before
Want to move content freely from platform to platform with no restrictions
Want to be heard (or...generate)
Use IM and Social Nets. Think that e-mail is for their parents
Source: MTV Study
Friday, January 25, 2008 11

Today, we
are here
You think
media
sharing is
out of Tomorrow:
control SHARING x
now ? 1000
Think
again.....
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
Friday, January 25, 2008 12

www.mediafuturist.com
Open is King
Open is now King.
But: Many core, monetizeable assets will remain
‘controlled’ (Example: Google)
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www.mediafuturist.com
Open is King
On the top layer, Open Systems win, all around
• In the networked economy, visibility, transparency and
compatibility are becoming a must-have standard
• Often, profits are generated more indirectly than before (i.e. the
tollbooth may have been moved), and therefore the ‘Measuring-
Success’ - Metrics must be adapted, too
• Much success will continue to come from disrupting existing
products with commoditized open standards
• Openness is a risk that -if balanced carefully- is well worth taking
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Turning Attention into Revenues
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The Mission: Monetizing Anarchy
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Now, Attention is the New Distribution
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...and it’s also is new Way of Paying for Content
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\"One engaged viewer is worth eight regular viewers\"
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Media... www.mediafuturist.com
...was ...is and will be
Linear B Interactive
O
Text Web T Audio & Video Web
H
Copyright Usage Right
will
Advertising Ads as Content
C
O
Professional Creators N User / Usator Content
T
I
Pay with cash N Pay with attention
U
One way Push E 2-way Pull
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www.mediafuturist.com
Open is King
Now, People will subscribe to People.
And to Mass Media, too.
Friday, January 25, 2008 21

From........ To www.mediafuturist.com
Open is King
All Access More ’Wisdom’
1000s of ‘Friends’ A few real friends
Millions of free songs 30-40 good songs / month
All movies for free Those really good movies
Give me everything, all
Give me the right thing, at
the time the right time
I want to meet the right
Now I can meet anyone
people
Always multitasking, with
Focus, Paying Attention
short attention
Friday, January 25, 2008 22

www.mediafuturist.com
The Future of Media Services is about Relevance Open is King
Not: where can I get this, how much can
I get, where is the best deal....?
But: what is relevant? Meaningful?
Enriching? A good fit? Time-worthy?
Friday, January 25, 2008 23

www.mediafuturist.com
The Web is becoming a Canvas
Open is King
Friday, January 25, 2008 24

www.mediafuturist.com
Open is King
Nokia predicts 25% of entertainment by 2012 will be created and consumed within peer communities
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An expanded UGC definition
www.mediafuturist.com
Open is King
User Based:
✦Content
✦Conversation
✦Context
✦Commerce
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www.mediafuturist.com
Open is King
Mainstream Media is about Hit Content
UGC is about Facilitation and
User Empowerment
.
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The new ‘Sell’
www.mediafuturist.com
Open is King
Friday, January 25, 2008 28

www.mediafuturist.com
Open is King
The great shift in Selling Content:
Example: Music
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It used to be that Revenues were www.mediafuturist.com
Open is King
generated WITH Music
Music
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Now: new revenues are generated primarily www.mediafuturist.com
Open is King
AROUND Music
Music
Source of stats: Emarketer.com
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www.mediafuturist.com
3 ways of paying for Content Open is King
• Money A la Carte /
per Unit
Subscriptions Flat Rates
Revenue
Shares
Freemium Syndication
Commissions
Re-
• Attention (Time) Ads: Ads: Ads: Packaging Branding
Customized
Feeds
CPM CPC CPT (Alt Out)
Sponsorships
Up-Selling
• Engagement / Co-creation / Sharing / Viral / Peer Distribution
Affiliate
Revenues
Lead
Generation
Data
Minining
(w/Opt-In)
Commissions Many
Others!
There are different payment models along each Content Curve, and as content changes in popularity so does the curve (and the mix!)
Friday, January 25, 2008 32

Cultural Expertship Required...
www.mediafuturist.com
Open is King
Niche Experts Required
Friday, January 25, 2008 33

www.mediafuturist.com
Open is King
Content
Consumption is now
Device Agnostic
- and so is Advertising
Friday, January 25, 2008 34

www.mediafuturist.com
Open is King
The Evolution of the car as a Media Space
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The Mobility Explosion www.mediafuturist.com
Open is King
Outside of the U.S., mobile devices will become the #1 channel for Direct Marketing
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www.mediafuturist.com
The power of the mobile phone
Open is King
The phone is the first truly
Personal Medium
The phone has Payment built-in
The phone is a Communication and
Creation tool that’s always with you
Friday, January 25, 2008 37

www.mediafuturist.com
Open is King
Imagine 4
Billion people trading
CONTENT on mobile devices
that can hold terabytes of data,
connecting via high speed
networks - and fully paid-for
with ADVERTISING
Friday, January 25, 2008 38

www.mediafuturist.com
Personalization versus Privacy Open is King
Personalization, Opt-Ins and deep Data Mining are definitely a
requirement for successful next-generation marketing, advertising
and branding concepts.
Marketers must become more aware of Digital Intrusion Issues
and related worries, and consider them when devising campaigns
Safeguarding privacy will be one of the biggest challenges for the
Future of Advertising
Friday, January 25, 2008 39

www.mediafuturist.com
Open is King
New horizons in Trust
Friday, January 25, 2008 40

www.mediafuturist.com
Open is King
The Truth Travels Fast
Open must be win-win-win.
Friday, January 25, 2008 41

www.mediafuturist.com
Open is King
Gerd Leonhard
gerd@mediafuturist.com
www.mediafuturist.com
Thanks for your time and attention!
Friday, January 25, 2008 42