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

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 Our consumer model is outdated.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