The New Music Economy: Music 2.0 At Picnic 2008 Amsterdam

Gerd Leonhard Media Futurist gerd@mediafuturist.com www.mediafuturist.com www.music20thebook.com Music 2.0 - a new, web-native music business Presentation at Picnic 2008 September 25, 2008 Amsterdam

Gerd Leonhard Media Futurist

Gerd Leonhard Media Futurist Source: Flickr hillarylmrore

Gerd Leonhard Media Futurist Music is now (again) a Social Medium Source: UniversalMcCann waves report

Gerd Leonhard Media Futurist Music 2.0: a networked, web-native, de-centralized Music Business.

Gerd Leonhard Media Futurist This is ... Not.

Goodbye ‘Copy = Money” Gerd Leonhard Media Futurist The The Western Definition of Copyright as Sole Value of Music is dead

Gerd Leonhard Media Futurist http://flickr.com/photos/hollyleigh97/

Gerd Leonhard Media Futurist The future source of income is Getting Attention

Gerd Leonhard Media Futurist This is not a battle for getting people’s money but a battle for their Attention

Gerd Leonhard Media Futurist For Creators, Obscurity is a much greater threat than so-called Piracy Source: CEA

Gerd Leonhard Media Futurist A web-native music business model...? Based on flat-rate access first, then Copy Based on Usage Rights, not (just) Copyright Based many revenue streams selling-copies Driven by Sharing, User-to-User Driven by Syndication (Widgets!) Decentralized Powered by next-generation Advertising Multi-platform access but mostly mobile!

Gerd Leonhard Media Futurist The result of this exploding Broadband Culture:

Gerd Leonhard Media Futurist Does strong copyright and strong protection really equal strong income?

Stop this? Gerd Leonhard Media Futurist

Gerd Leonhard Media Futurist You can’t really ‘own’ the copy any more but You can own the Context, the Meaning, the Relevance, the Experience, the Embodiment, the Timing...

Gerd Leonhard Media Futurist Asking the ISPs to deep- package inspect their traffic and then enforce the rules of an industry that has utterly failed to adapt their business model, is asking for Censorship

Let’s face it: this is wrong www.mediafuturist.com Wanting to disconnect people because they download music & other ‘content’ is wrong. Criminalizing 90% of the population because of a lack of a new model to serve them is wrong. Exploiting market weaknesses to withhold music licenses is wrong, and so is ruthlessly capitalizing on one’s market position Using copyright as an excuse to extort the users and the organizations that serve them is wrong

www.mediafuturist.com Instead of Control, Trust is the key to success in a Networked World http://www.guardian.co.uk/media/2008/apr/21/netmusic

Gerd Leonhard Media Futurist This is a very serious change Copy Economy Access / Usage / Share Economy

Gerd Leonhard Media Futurist If you insert Friction you insert Defeat

Gerd Leonhard Media Futurist Goodbye ‘Consumers’ as we knew them

Gerd Leonhard Media Futurist Welcome: The digital Music Flat Rate

Gerd Leonhard Media Futurist Old ‘paying logic’ http://www.repmanblog.com/photos/uncategorized/48750_a.jpg

Gerd Leonhard Media Futurist New paying logic

Gerd Leonhard Media Futurist Used to be Music

Gerd Leonhard Media Futurist ...is & will be Music

Gerd Leonhard Media Futurist Our Future as Creatives: Attention-based Income explodes while Copy-based income declines *for now Copy Based Revenues Attention Based Revenues 10.0 7.5 5.0 2.5 Was 0 Is Soon Near Future Mid-term Future

Gerd Leonhard Media Futurist And a flat rate is just the beginning!

Gerd Leonhard Media Futurist And once 4 Billion phones are connected

Gerd Leonhard Media Futurist So why isn’t Google licensed for music yet?

Gerd Leonhard Media Futurist Let’s start sharing in the new revenues! Start giving PERMISSION

Gerd Leonhard Media Futurist Now, we must ‘sell’ things that can’t be copied

Gerd Leonhard Media Futurist The industry has to offer a real, feasible license to the networks, and enable a Flat Rate that legalizes the ubiquitous use of music. If there is no voluntary collective we may need to enforce its creation. If the ISPs are forced to unplug people maybe we should unplug the industry, too?

Gerd Leonhard Media Futurist Yes, there are many issues, but: The evils of ‘too open’ or ‘too much freedom’ will always pale compared to the evils of closed, central, controlled and authoritarian system

Gerd Leonhard Media Futurist Let me tell you a story about China, Google and Music

Gerd Leonhard Media Futurist Google Music in China SHANGHAI, CHINA, August 2008: Google has launched a free music search service in China that will give users access to free downloads of songs, while capturing advertising revenue for music providers in a market already infamous with piracy. The service poses a challenge to Baidu.com, the #1 search engine in China, along with other Chinese search engines, faced lawsuits charging that it facilitates copyright violations through downloads of unlicensed music. Google said its service would initially let Internet users search tens of thousands of Chinese songs on its website and download them Top100.cn... Advertising revenue from the service will be shared among Top100.cn and Google’s music partners aiding in the search. Source: Reuters / Information Week

Gerd Leonhard Media Futurist A Creative Economy based on ‘Mutual Interest’ ? “The Internet industry should by no means stand in the opposite camp against the music industry. Google always believes profoundly that mutual interest, rather than monopoly, is the key to sustainable growth,” Google China president Kai-fu Lee said in a statement

Gerd Leonhard Media Futurist A Recipe...? Establish open, access & usage - based content licenses Very large, engaged, always-on audiences Low-cost, ubiquitous, mashed-access, mobile broadband Telecoms that will become content & service pipes Large Brands (and their agencies) that must reinvent their marketing and advertising strategies Premium Content as well as UGC unprotected, unlimited Trusted opt-ins and flexible privacy provisions

Gerd Leonhard Media Futurist The Model Find the many Make it ‘feel like free’ Charge the few Up-sell the rest!

Gerd Leonhard Media Futurist Kevin Kelly: The key is to offer valuable intangibles that can not be reproduced at zero cost, and will thus be paid for: 1. Immediacy - priority access, immediate delivery 2. Personalization - tailored just for you 3. Interpretation - support and guidance 4. Authenticity - be sure it is the real thing? 5. Accessibility - whereever, whenever 6. Embodiment & Experience 7. Patronage - quot;paying simply because it feels goodquot; 8. Findability & Curation

Gerd Leonhard Media Futurist quot;When The winds of change are blowing, some people are building shelters, and others are building windmills.quot; Chinese Proverb

Gerd Leonhard Media Futurist Gerd Leonhard gerd@mediafuturist.com www.mediafuturist.com www.music20book.com Thanks for listening!

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The New Music Economy: Music 2.0 At Picnic 2008 Amsterdam

by Gerd Leonhard on Sep 25, 2008

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The New Music Economy: Music 2.0 At Picnic 2008 Amsterdam — Presentation Transcript