Squeezing the evil out of the music industry

Squeezing the Evil out of the music industry John Buckman <john@magnatune.com> http://slideshare.net/johnbuckman http://creativecommons.org/licenses/by-sa/3.0/

Personal

My Journey

From Open Source Geek

int Ns_ModuleInit(char *hServer, char *hModule) { nsdbContext *context = ns_malloc(sizeof(nsdbContext)); Ns_RegisterShutdown(nsbdShutdown, context); if (hServer) { context->server = ns_malloc(strlen(hServer)+1); strcpy(context->server, hServer); } else { context->server = NULL; } if (hModule) { context->module = ns_malloc(strlen(hModule)+1); strcpy(context->module, hModule); } else { context->module = NULL; } Tcl_InitHashTable(&table_handles, TCL_STRING_KEYS); dbenv_start(home); Ns_MutexInit(&mutexBDPut); Ns_MutexInit(&mutexBDSync);

To Open Culture Nerd

from Legally Ignorant

1993 (I was 24 years old): Desktop Internet Reference

License: The Desktop Internet Reference is in the public domain and may not be sold...

That makes no (legal) sense. but it was a “CC by-nc-sa” concept

to Stallman

http://www.samag.com/documents/s=1148/sam0107a/0107a.htm

to Lessig

to Blissful Enlightenment

Amarok Rhythmbox Songbird Squeezebox

Bang & Olufsen Renault

Blair Witch Project

Ubuntu & Canonical

It’s all good

from Introverted by nature

A ﬁlm: “Defending Your Life”

Toastmasters

to Extroverted by choice

A bit more Activist

Wanting to sleep better at night

Majordomo

Mailman

Unhappy

Sold out

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Our consumer model is outdated.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 - “I just want to listen!”

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 Creative Commons legalized sharing

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

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 million

Book swapping web sites will be the ﬁrst global, free repository of most historical human knowledge

Whatcha think? John Buckman <john@magnatune.com> http://slideshare.net/johnbuckman CC BY-SA 3.0 - http://creativecommons.org/licenses/by-sa/3.0/

Squeezing the evil out of the music industry

by johnbuckman on Oct 26, 2008

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