Music 2.0 -
the time is
Now.
‣Futurist by Gerd Leonhard
‣ Strategist www.mediafuturist.com
‣ Author & Blogger twitter.com/gleonhard

Only an average of 20% a newspaper’s
income is spend on CONTENT CREATION.
Thanks to Flickr.com/alextorrenegra

Will we keep paying for this...?

Are we willing to pay for...
Buildings
Machines
Trucks / Distribution
Bonuses
Corporate Perks
Good Content
Curation
Selection

How will Creators make a living...?

Our new reality: Listen / Use = Copy

We need to let go of the value that
Unit Sales &
Distribution had in the
traditional music business.

“A new Social Contract”

What is this ‘new contract’?
•
•
All use ‘freely’ all pay ‘freely’
Collectively, and for everyone
•
•
Open and transparent system
There are many ways to ‘pay’
•
•
Access is granted to everyone
More value means more payments
•
•
Meter the usage not the copy
Stop banking on Friction!

Stop banking on Control - bank on
Trust

Flat-rated & Bundled Content

It used to be...
Premium
“Option”
“Extra”
Default

The immediate Future:
The New
Premium
The
new
‘Normal

Music (Content) is first
a Service and an
Experience, and only
then (maybe) a
Product.

If Access replaces Ownership as Default...

Experience
Embodiment
Access

How will access to content be paid for?
Paid by 3rd Parties
Flat-Rates
Bundles
Access

Structural Income Individual Income
Streams Streams
(i.e. built-in, systematic) (i.e. personal, private)
Income
Attention

The Key is Getting Attention. And then, the $$!
Love
Trust
Appreciation

The first question is not: shall I
pay money for your
music.
The first question is WHY shall I
pay attention to
you.

So there are 3 tasks...
1.Getting more Attention,
maintain & expand the TRUST
2.Convert the Attention into $$
3.Fix the structural problem -
ASAP

Because getting paid for Attention is
also a Structural and Political issue

Getting the ‘Pool of Money’ is crucial
What would you rather have?
• 50 Million x $1 via blanket music access fees (shared)
• 100 x $10 from the few people that buy a-la-carte?

What are we paying for, here...?
Not to eat all the food... but to get Access!

Structural Income Streams
• Record & download sales
• Composer’s royalties
• Public performance, Airplay and
other royalties
Pro-rata with popularity
No individual permission needed
Regulated by law
Collective!

How ...?
• Create a new collective, compulsory
digital music license
• Adopt open and transparent
business platforms and processes
• Abolish Rights Monopolies
• Standardize licenses

The Many 2.0 Logic
Music more...
Permission
Community Premium Offerings
i.e. License
High Definition Formats
Mobile Device Applications & Software
Live-Concerts, Web-Casts, Virtual Shows...
Flat Rates, Bundles, Revenue Shares...
Bundled Access to content will create the Foundation

Free gets you to a place
where you can get paid.
Fred Wilson, Union Square Ventures

• Provide free and easy access to your
music, for anyone that is interested *
• Subsidize the free music with next-
generation advertising, affiliate sales, data-
mining and other ‘New Generatives’
• Addict fans to your offering by providing
more and more values all the time *
• Offer a myriad of ways of getting more
engaged and buy into Premium offerings
• Convert between 5%-40% of free users to
paying users

Personal Income Streams
• TV, films, ads: synchronization
• Contract work (writing)
• Concerts & appearances
• Producing
• Sponsors, branding, advertising...
Your brand value is crucial
A large business network is crucial
Visibility is crucial
The Internet provides many tools now!

How to fix the Attention Problem
1.Start with being Great - because you
can’t fake it anymore
2.Be very very very unique and daringly
different (and still real!)
3.Make yourself and your content
available: self-publish everything
4.Build a vast network of friends,
followers, business contacts
5.Go there! RL / Meatspace & Online:
showing up is half the job!

Now, your followers are your Marketing

Bottom Line:
Great Music +
Lots of Attention +
Many followers
(tribe members) =
your marketing =
Income.

Was...

Will be

Great User Interface & User
Experience changes everything

Imagine...
Radio TV Phone Library Message-Center
NewsReader Game-Pad Image Viewer Wallet

The Mobile Use
*fka ‘Consumption’ of
Digital Goods is
the #1 Growth
Story of the next 5
years

Don’t be too little too late!

Generating Attention

Quit Pushing.
Start Pulling

Work the system!
Link Economy
Attention Economy
Reputation Economy

Starting selling
more things that
can’t be copied

How is this going to happen?

Summary

Thanks for listening!
★ email me at gerd@mediafuturist.com
★ twitter.com/gleonhard
★ facebook: gleonhard
★ more presentations at
www.mediafuturist.com