Music2 Gerd Leonhard on the Next Generation of the Music Business

Gerd Leonhard, Digital Music Entrepreneur & ‘Music & Media Futurist’ www.mediafuturist.com www.gerdpresents.com CEO, www.sonific.com The Future of Music & Music Like Water gerd@musicfuturist.com www.gerdleonhard.net (blog)

Today, 2 things: 1. Digital music distribution is out of control - and that will be a very good thing for all of us! 2. ‘Music like Water’ will make all of us a lot more money than “Music on Plastic” Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

New technologies usually disrupt severely but always make the market bigger Big technology changes always take longer than we think, but then whe they do happen, they happen much bigger than anyone expected... and that time is NOW. 2007 is a year of drastic changes. Gerd Leonhard Music & Media Futurist www.mediafuturist.com

THIS is the end of controlling distribution - and the beginning of a new boom! Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Controlling music is an obsession of the past Participating in the Use of Music is the Future Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

So why do we still have DRM? Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

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

8 Gerd Leonhard Music & Media Futurist www.mediafuturist.com

The reality: 75.000 different devices that play MP3 files Approx. 75 devices that play DRM’ed files Gerd Leonhard, Music & Media Futurist gerd@musicfuturist.com

Soon... Today 1 Billion+ devices 75-80 Million devices Gerd Leonhard, Music & Media Futurist gerd@musicfuturist.com

So... Which of the two options creates a better market place, benefits everyone, and will make a ton more $: an open format, or a closed format? Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

The business models that empower the end users are the ones that will win Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

The Reality: Finding and Being Found is what generates the $$$$ - it’s the BRAND not the Some COPY smart stuff from PWC Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

From ‘The Network’ to NETWORKED Gerd Leonhard Music & Media Futurist www.mediafuturist.com

I click - therefore I create value.... I program my media --- it does not program me! Gerd Leonhard, Music & Media Futurist

Second: the issue of Ubiquity - Music Like Water Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Water... • Everybody uses everybody pays (but not at each and every point of use) • Tap water is ubiquitous and ‘feels like free’, but ‘better water’ generates $100 Billion per year Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Worldwide, almost a $100 Billion per year is spent for something you could also get for free! Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

$ 45 $0 Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

How is Music... Like Water? • Music is a basic need, to all, not a luxury (for some) • Everybody uses, everybody pays (but it can ‘feel free’) • A ‘right of access’ for all, anytime, anywhere • Premium water costs extra, too • ‘Normal’ use ‘feels like free’, excess use costs extra •Ubiquity INCREASES value Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Music Like Water would give us growth... like this: Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Why buy bottled water if tap water is free? • Guaranteed quality • Premiums such as better sound • Added values and more options (interactivity) • Timeliness (not yet on tap everywhere) • “It’s special” Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

But this is the biggest paradigm shift since the printing press 25% buy Scarcity Ubiquity 95% buy 23 Gerd Leonhard Music & Media Futurist www.mediafuturist.com

Gerd Leonhard Music & Media Futurist www.mediafuturist.com

And we must finally rid ourselves from the obsession with selling copies Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

The business of just ‘selling copies’ is OVER Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

The new business is selling ACCESS first, and then some more... Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Based on these principals • Not Prevention but Participation • A new, collective license for the digital use of music - similar to the broadcast (i.e. radio) license • Remuneration must be based on monitoring, tracking, and accounting of ACCESS and USE, not just on Unit Sales (or Performance) • Copyright is the principle, Usage Right the reality Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Challenge your assumptions Practice un-control... and get more $$ Think ‘Music’ not COPIES Lose the obsession with hits Appoint new, clued-in leaders Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

So: Get out IN FRONT of a changing market place- NOW Gerd Leonhard Music & Media Futurist www.mediafuturist.com

Gerd Leonhard ‘Music & Media Futurist’ www.mediafuturist.com www.gerdpresents.com CEO, www.sonific.com Thanks for listening- and talk to me! gerd@musicfuturist.com www.gerdleonhard.net (Blog) Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Music2 Gerd Leonhard on the Next Generation of the Music Business

by Gerd Leonhard on Jan 21, 2008

Accessibility

Categories

Tags

Upload Details

Usage Rights

Statistics

Music2 Gerd Leonhard on the Next Generation of the Music Business — Presentation Transcript