Music Like Water: Gerd Leonhard at A2N 2009 Berlin

Music Like Water: why, what, when and how? ‣ Futurist ‣ Strategist ‣ Author & Blogger www.mediafuturist.com twitter.com/gleonhard 1 1

What I do: ‣ Understand Clients such as IBM, Google, Nokia, DDB, Deutsche Telekom, ‣ Develop Ideas Sony BMG, Orange / France Telecom, BBC, ITV, RTL, The ‣ Catalyze Change European Commission, TribalDDB, Omnicom, Siemens, Telkom www.mediafuturist.com Indonesia, BOL... twitter.com/gleonhard 2 2

A big “Thank You” to everyone in my Network Most of what I ‘know’ you have given to me. re d h a n s h e s w ro w e g d g w le n o K 3 3

Listening, Reading & Watching = Copying 4 4

The value of Music is no longer (just) in the Copy Selling ‘units’ is yesterday’s concern - and so is the definition of a ‘Sale’ Trying to maintain total control of distribution is pointless 5 5

The value of Music is no longer (just) in the Copy Selling ‘units’ is yesterday’s concern - and so is the definition of a ‘Sale’ Trying to maintain total control of distribution is pointless 6 6

The World’s OS is Morphing 7 7

The new OS 8 8

Sharing? You ain’t seen nothing yet... 9 9

The global switch from Closed to Open Media & Content Telecommunication Energy Business Education 11 11

Yet, in Music we are approaching total Copyright Gridlock 13 13

This is a very bad idea 14 14

Because... 15 15

http://mahasiah.wordpress.com/ 16 16

What does this remind you of? “France's Ministry of Culture estimates that 1,000 people a day could be cut off from the internet under the bill. After first being sent a warning email and then a formal letter by Hadopi, those accused of illegal file- sharing for a third time could be disconnected for up to a year and face a €300,000 fine and jail time. Even those found guilty of "negligence" for allowing others (such as their children) to pirate online material risk a month-long internet suspension and a €1,500 fine..." Source: The Guardian Sept 10 09 17 17

The Music Economy is Broken The System is certified dysfunctional Source: Techdirt 18 18

Let’s not confuse things 19 19

Why this can’t possibly work 200 Million users seems entirely realistic 20 songs per day = 4 Billion plays per day @ 1 Cent USD $40 Million PER DAY in license fees for the masters 14.6 BILLION USD per year in licensing costs Plus: costs for Public Performance in 50+ countries Plus: payments to composers Plus: technical costs = 50% of Google’s yearly $$ 20 20

And this is not a unique problem A market-driven solution is very unlikely 21 21

But it gets worse Private deals for public services? What choice did they have? How much control does this leave them? Is this ‘fair business practice’? 22 22

A market-driven solution is very unlikely "In parallel, the two companies will be working together to protect Universal Music's intellectual property and drive a material reduction in the unauthorised distribution of its repertoire across Virgin Media's network," said a statement. 23 23

“A new Social Contract” 24 24

What would this look like? First, legalize it - give permission All use - all pay * or otherwise generate $ value Many kinds of payments emerge Rights are public, open and standardized Licenses are available to every business Data-Mining and Market Access is $ value, too 25 25

Public License + Build-in Revenues + Proportional Distribution 26 26

Where will that Euro / Week come from? 27 27

With a new Internet Music License we don’t just sell something - we also buy 28 something! 28

Many other New Generatives Community Premium Services Permission High Definition & Premium Media Mobile Device Applications & Software Live-Concerts, Web-Casts, Virtual Shows... Flat Rates, Bundles, Revenue-Sharing 29 A new and very lucrative Ecosystem would emerge 29

We don’t pay to eat all the food... we pay for access 30 30

If we had a public music license, this would already be money in the bank! 31 31

So why is there still so little revenue from Youtube, Myspace, Facebook...? • Advertisers are always 2-3 years behind • Lack of permission for legal content has resulted in much slower adoption • Lack of public license has deterred new investors • Mobile broadband and smart mobile devices are just now starting to take off 33 33

REVENUE Expect radical habit changes when the technology actually works 34 34

And this would become a huge business, too 35 35

With a public music license, the Longtail & Success in the Niches becomes very real, too Image: Flickr.com/WhiskersandWhispers 36 36

Summary: my proposal *since 1999 • Legalize it: a public, collective, open License for the use of Music online • Collaborative efforts to develop new, web-native revenue streams • A new social contract for Content 37 37

Thanks for listening! • email me at gerd@mediafuturist.com • twitter.com/gleonhard • facebook: gleonhard • more presentations at www.mediafuturist.com 38 38

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Music Like Water: Gerd Leonhard at A2N 2009 Berlin

by Gerd Leonhard on Sep 18, 2009

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Music Like Water: Gerd Leonhard at A2N 2009 Berlin — Presentation Transcript