Music 2.0 -
           the time is
             Now.
‣Futurist       by   Gerd Leonhard
‣ Strategist          www.mediafut...
Only an average of 20% a newspaper’s
income is spend on CONTENT CREATION.




                              Thanks to Flic...
Will we keep paying for this...?
Are we willing to pay for...

    Buildings
    Machines
    Trucks / Distribution
    Bonuses
    Corporate Perks
    Goo...
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
 •
 •
  ...
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)    ...
The Key is Getting Attention. And then, the $$!

                 Love

                              Trust



           ...
The first question is not: shall I

pay money for your
             music.

The first question is WHY shall I

pay attenti...
So there are 3 tasks...


1.Getting more Attention,
 maintain & expand the TRUST
2.Convert the Attention into $$
3.Fix the...
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 (sh...
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 royal...
How ...?

• Create a new collective, compulsory
  digital music license
• Adopt open and transparent
  business platforms ...
The      Many 2.0 Logic
        Music more...
                                             Permission
 Community Premium O...
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-
...
Personal Income Streams
• TV, films, ads: synchronization
• Contract work (writing)
• Concerts & appearances
• Producing
•...
How to fix the Attention Problem
1.Start with being Great - because you
 can’t fake it anymore
2.Be very very very unique ...
Now, your followers are your Marketing
Bottom Line:

       Great Music +
       Lots of Attention +
       Many followers
       (tribe members) =
       your m...
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 presentat...
Music 2.0 - The Time is NOW (Gerd Leonhard at AMBC 2009 in Sydney
Music 2.0 - The Time is NOW (Gerd Leonhard at AMBC 2009 in Sydney
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Music 2.0 - The Time is NOW (Gerd Leonhard at AMBC 2009 in Sydney

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The Future of the Music and the Public Digital Music License

Published in: Business

Music 2.0 - The Time is NOW (Gerd Leonhard at AMBC 2009 in Sydney

  1. 1. Music 2.0 - the time is Now. ‣Futurist by Gerd Leonhard ‣ Strategist www.mediafuturist.com ‣ Author & Blogger twitter.com/gleonhard
  2. 2. Only an average of 20% a newspaper’s income is spend on CONTENT CREATION. Thanks to Flickr.com/alextorrenegra
  3. 3. Will we keep paying for this...?
  4. 4. Are we willing to pay for... Buildings Machines Trucks / Distribution Bonuses Corporate Perks Good Content Curation Selection
  5. 5. How will Creators make a living...?
  6. 6. Our new reality: Listen / Use = Copy
  7. 7. We need to let go of the value that Unit Sales & Distribution had in the traditional music business.
  8. 8. “A new Social Contract”
  9. 9. 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!
  10. 10. Stop banking on Control - bank on Trust
  11. 11. Flat-rated & Bundled Content
  12. 12. It used to be... Premium “Option” “Extra” Default
  13. 13. The immediate Future: The New Premium The new ‘Normal
  14. 14. Music (Content) is first a Service and an Experience, and only then (maybe) a Product.
  15. 15. If Access replaces Ownership as Default...
  16. 16. Experience Embodiment Access
  17. 17. How will access to content be paid for? Paid by 3rd Parties Flat-Rates Bundles Access
  18. 18. Structural Income Individual Income Streams Streams (i.e. built-in, systematic) (i.e. personal, private) Income Attention
  19. 19. The Key is Getting Attention. And then, the $$! Love Trust Appreciation
  20. 20. The first question is not: shall I pay money for your music. The first question is WHY shall I pay attention to you.
  21. 21. So there are 3 tasks... 1.Getting more Attention, maintain & expand the TRUST 2.Convert the Attention into $$ 3.Fix the structural problem - ASAP
  22. 22. Because getting paid for Attention is also a Structural and Political issue
  23. 23. 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?
  24. 24. What are we paying for, here...? Not to eat all the food... but to get Access!
  25. 25. 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!
  26. 26. How ...? • Create a new collective, compulsory digital music license • Adopt open and transparent business platforms and processes • Abolish Rights Monopolies • Standardize licenses
  27. 27. 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
  28. 28. Free gets you to a place where you can get paid. Fred Wilson, Union Square Ventures
  29. 29. • 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
  30. 30. 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!
  31. 31. 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!
  32. 32. Now, your followers are your Marketing
  33. 33. Bottom Line: Great Music + Lots of Attention + Many followers (tribe members) = your marketing = Income.
  34. 34. Was...
  35. 35. Will be
  36. 36. Great User Interface & User Experience changes everything
  37. 37. Imagine... Radio TV Phone Library Message-Center NewsReader Game-Pad Image Viewer Wallet
  38. 38. The Mobile Use *fka ‘Consumption’ of Digital Goods is the #1 Growth Story of the next 5 years
  39. 39. Don’t be too little too late!
  40. 40. Generating Attention
  41. 41. Quit Pushing. Start Pulling
  42. 42. Work the system! Link Economy Attention Economy Reputation Economy
  43. 43. Starting selling more things that can’t be copied
  44. 44. How is this going to happen?
  45. 45. Summary
  46. 46. Thanks for listening! ★ email me at gerd@mediafuturist.com ★ twitter.com/gleonhard ★ facebook: gleonhard ★ more presentations at www.mediafuturist.com
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