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 Our consumer model is outdated.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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