Money for nothing
building on the commons for fun and profit




       John Buckman <john@magnatune.com>
          http://...
Home bookshelves
around the world
Their books available to you
for free
and nothing publishers
   can do about it
BookMooch
     makes money with:
       - margin on Amazon sales

($40,000 in monthly Amazon book sales)
Twenty companies


     The largest:

     BookCrossing
    PaperbackSwap
      BookMooch
Estimate:

Two million people
  have tried book swapping
At least

50,000 books
are swapped
  each day
Google loves us
BookMooch - total number of swaps
800,000 in 2nd year




300,000 in 1st year




BookMooch - total number of swaps
   1 year ago: 300,000 - now at 1.1 mill...
Book swapping web sites
 will be the first global, free
repository of most historical
      human knowledge
But, there was a problem.
Our business model sucked.
BIG music license fees
are an old-boy network
Our download advantages:

        * no drm
   * high audio quality
   * musicians get paid
Yawn.

iTunes does that all now.
Cory Doctorow says:

DRM is not a feature
I say:

The lack of DRM is
also not a feature.
Our consumer model is outdated.
In 1970:

Shopping for music is fun!
In 2000:

Shopping online for music is fun!

  (just like in a physical store)
In 2008:

Shopping for music online is boring
Find a teenage girl

Look at her iPod
You will find:

       Collections
Music from my friend Amy
       That cute DJ
         Chill out
I wanna feel good! music
Our analysis:


 being a music librarian is no fun

     - picking music is tedious
- backing up, moving music is work
   ...
Our analysis:


     People want access,
they want curated collections,
    they want simplicity.
Our new business model
Help us stop selling you music
Tell us how much you want to pay
           each month
We give you complete access to
our music, in every way you can
             imagine
streaming from work
            downloads
           3g iPhone app
            web player
        multihour podcasts
Creat...
completely changes the seller/buyer
             dynamic
“customers”
    become

 “members” and
“supporters” and
  “connectors”
and all I need to worry about is
      keeping them happy.
Forget B2C!

What about B2B?
US music business is
$18 billion annually
$12 billion of that is licensing
Yes, 2/3rds.
Record labels are scared, slow,
           stupid.

   And they’re downsizing.
And many companies are out-
competing them with licensing.
Our niche:

rights you can’t get elsewhere
Renault Megane
From the producers of
The Blair Witch Project
To summarize
Music licensing is an ok business

            slow to build,
      focus on untapped niches
Download sales are dying
For now:

 Memberships,
all-you-can-eat,
no restrictions,
     works.
Magnatune won’t
take over the world
but it can make a contribution
and it’s a nice way
to spend a decade of my life
the end




Money for nothing
building on the commons for fun and profit


       John Buckman <john@magnatune.com>
       ...
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
Money for Nothing
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Money for Nothing

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Building on the commons for for fun and profit. Presented to the Nordic Cultural Commons 2008 conference in Stockholm

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Money for Nothing

  1. 1. Money for nothing building on the commons for fun and profit John Buckman <john@magnatune.com> http://slideshare.net/johnbuckman
  2. 2. Home bookshelves around the world
  3. 3. Their books available to you
  4. 4. for free
  5. 5. and nothing publishers can do about it
  6. 6. BookMooch makes money with: - margin on Amazon sales ($40,000 in monthly Amazon book sales)
  7. 7. Twenty companies The largest: BookCrossing PaperbackSwap BookMooch
  8. 8. Estimate: Two million people have tried book swapping
  9. 9. At least 50,000 books are swapped each day
  10. 10. Google loves us
  11. 11. BookMooch - total number of swaps
  12. 12. 800,000 in 2nd year 300,000 in 1st year BookMooch - total number of swaps 1 year ago: 300,000 - now at 1.1 million
  13. 13. Book swapping web sites will be the first global, free repository of most historical human knowledge
  14. 14. But, there was a problem.
  15. 15. Our business model sucked.
  16. 16. BIG music license fees are an old-boy network
  17. 17. Our download advantages: * no drm * high audio quality * musicians get paid
  18. 18. Yawn. iTunes does that all now.
  19. 19. Cory Doctorow says: DRM is not a feature
  20. 20. I say: The lack of DRM is also not a feature.
  21. 21. Our consumer model is outdated.
  22. 22. In 1970: Shopping for music is fun!
  23. 23. In 2000: Shopping online for music is fun! (just like in a physical store)
  24. 24. In 2008: Shopping for music online is boring
  25. 25. Find a teenage girl Look at her iPod
  26. 26. You will find: Collections Music from my friend Amy That cute DJ Chill out I wanna feel good! music
  27. 27. Our analysis: being a music librarian is no fun - picking music is tedious - backing up, moving music is work - “I just want to listen!”
  28. 28. Our analysis: People want access, they want curated collections, they want simplicity.
  29. 29. Our new business model
  30. 30. Help us stop selling you music
  31. 31. Tell us how much you want to pay each month
  32. 32. We give you complete access to our music, in every way you can imagine
  33. 33. streaming from work downloads 3g iPhone app web player multihour podcasts Creative Commons legalized sharing
  34. 34. completely changes the seller/buyer dynamic
  35. 35. “customers” become “members” and “supporters” and “connectors”
  36. 36. and all I need to worry about is keeping them happy.
  37. 37. Forget B2C! What about B2B?
  38. 38. US music business is $18 billion annually
  39. 39. $12 billion of that is licensing
  40. 40. Yes, 2/3rds.
  41. 41. Record labels are scared, slow, stupid. And they’re downsizing.
  42. 42. And many companies are out- competing them with licensing.
  43. 43. Our niche: rights you can’t get elsewhere
  44. 44. Renault Megane
  45. 45. From the producers of The Blair Witch Project
  46. 46. To summarize
  47. 47. Music licensing is an ok business slow to build, focus on untapped niches
  48. 48. Download sales are dying
  49. 49. For now: Memberships, all-you-can-eat, no restrictions, works.
  50. 50. Magnatune won’t take over the world
  51. 51. but it can make a contribution
  52. 52. and it’s a nice way to spend a decade of my life
  53. 53. the end Money for nothing building on the commons for fun and profit John Buckman <john@magnatune.com> http://slideshare.net/johnbuckman
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