Squeezing the Evil
    out of the music industry




   John Buckman <john@magnatune.com>
       http://slideshare.net/joh...
Squeezing the Evil
    out of the music industry




   John Buckman <john@magnatune.com>
       http://slideshare.net/joh...
Personal
My Journey
From
Open Source
   Geek
int Ns_ModuleInit(char *hServer, char *hModule) {

   nsdbContext *context = ns_malloc(sizeof(nsdbContext));
   Ns_Registe...
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
Lyris
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Our consumer model is outdated.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
   ...
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
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
Whatcha think?



    John Buckman <john@magnatune.com>
          http://slideshare.net/johnbuckman

CC BY-SA 3.0 - http:/...
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
Squeezing the evil out of the music industry
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Squeezing the evil out of the music industry

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I talk about my past, how went from an open source geek, to a free culture advocate, and about Magnatune and BookMooch

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  • Video of this presentation available at:
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Squeezing the evil out of the music industry

  1. 1. 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/
  2. 2. 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/
  3. 3. Personal
  4. 4. My Journey
  5. 5. From Open Source Geek
  6. 6. 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);
  7. 7. To Open Culture Nerd
  8. 8. from Legally Ignorant
  9. 9. 1993 (I was 24 years old): Desktop Internet Reference
  10. 10. License: The Desktop Internet Reference is in the public domain and may not be sold...
  11. 11. That makes no (legal) sense. but it was a “CC by-nc-sa” concept
  12. 12. to Stallman
  13. 13. http://www.samag.com/documents/s=1148/sam0107a/0107a.htm
  14. 14. to Lessig
  15. 15. to Blissful Enlightenment
  16. 16. Amarok Rhythmbox Songbird Squeezebox
  17. 17. Bang & Olufsen Renault
  18. 18. Blair Witch Project
  19. 19. Ubuntu & Canonical
  20. 20. It’s all good
  21. 21. from Introverted by nature
  22. 22. A film: “Defending Your Life”
  23. 23. Toastmasters
  24. 24. to Extroverted by choice
  25. 25. A bit more Activist
  26. 26. Wanting to sleep better at night
  27. 27. Lyris
  28. 28. Majordomo
  29. 29. Mailman
  30. 30. Unhappy
  31. 31. Sold out
  32. 32. But, there was a problem.
  33. 33. Our business model sucked.
  34. 34. BIG music license fees are an old-boy network
  35. 35. Our download advantages: * no drm * high audio quality * musicians get paid
  36. 36. Yawn. iTunes does that all now.
  37. 37. Cory Doctorow says: DRM is not a feature
  38. 38. I say: The lack of DRM is also not a feature.
  39. 39. Our consumer model is outdated.
  40. 40. In 1970: Shopping for music is fun!
  41. 41. In 2000: Shopping online for music is fun! (just like in a physical store)
  42. 42. In 2008: Shopping for music online is boring
  43. 43. Find a teenage girl Look at her iPod
  44. 44. You will find: Collections Music from my friend Amy That cute DJ Chill out I wanna feel good! music
  45. 45. Our analysis: being a music librarian is no fun - picking music is tedious - backing up, moving music is work - “I just want to listen!”
  46. 46. Our analysis: People want access, they want curated collections, they want simplicity.
  47. 47. Our new business model
  48. 48. Help us stop selling you music
  49. 49. Tell us how much you want to pay each month
  50. 50. We give you complete access to our music, in every way you can imagine
  51. 51. streaming from work downloads 3g iPhone app web player multihour podcasts Creative Commons legalized sharing
  52. 52. completely changes the seller/buyer dynamic
  53. 53. “customers” become “members” and “supporters” and “connectors”
  54. 54. and all I need to worry about is keeping them happy.
  55. 55. Forget B2C! What about B2B?
  56. 56. US music business is $18 billion annually
  57. 57. $12 billion of that is licensing
  58. 58. Yes, 2/3rds.
  59. 59. Record labels are scared, slow, stupid. And they’re downsizing.
  60. 60. And many companies are out- competing them with licensing.
  61. 61. Our niche: rights you can’t get elsewhere
  62. 62. Renault Megane
  63. 63. From the producers of The Blair Witch Project
  64. 64. To summarize
  65. 65. Music licensing is an ok business slow to build, focus on untapped niches
  66. 66. Download sales are dying
  67. 67. For now: Memberships, all-you-can-eat, no restrictions, works.
  68. 68. Magnatune won’t take over the world
  69. 69. but it can make a contribution
  70. 70. and it’s a nice way to spend a decade of my life
  71. 71. Home bookshelves around the world
  72. 72. Their books available to you
  73. 73. for free
  74. 74. and nothing publishers can do about it
  75. 75. BookMooch makes money with: - margin on Amazon sales ($40,000 in monthly Amazon book sales)
  76. 76. Twenty companies The largest: BookCrossing PaperbackSwap BookMooch
  77. 77. Estimate: Two million people have tried book swapping
  78. 78. At least 50,000 books are swapped each day
  79. 79. Google loves us
  80. 80. BookMooch - total number of swaps
  81. 81. 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
  82. 82. Book swapping web sites will be the first global, free repository of most historical human knowledge
  83. 83. Whatcha think? John Buckman <john@magnatune.com> http://slideshare.net/johnbuckman CC BY-SA 3.0 - http://creativecommons.org/licenses/by-sa/3.0/
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