Soundstreams New Models of Distribution Conference - Paul Hoffert Keynote Presentation
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This document discusses new models of distribution for classical music communities in a globalized, digital world. It argues that while infrastructure has become global, content and culture remain local. Examples are given showing how global brands localize their products and marketing for different cultures. New opportunities exist in online distribution and long-tail consumption, allowing niche audiences to be catered to. Music centers can play a role in exposing new audiences to classical music online and helping trigger transactions like purchases. Key issues include how to use new technologies to expose people to classical content in ways that lead them to engage financially with the art form.
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Soundstreams New Models of Distribution Conference - Paul Hoffert Keynote Presentation
- 1. Classical Music Communities New Models of Distribution! Soundstreams! Toronto! 080522! Paul Hoffert! We Live in a Global Village Harmonized Products, Services, & Programs! โขโ Across Territorial Boundaries! โขโ Across Political Boundaries! โขโ Across Cultural Boundaries! REALLY?! 1
- 2. NO - Info Age is Local Infrastructure IS Global! โขโ Banking and Communications! BUT,! Content and Culture are Local! Is The Global Village a Myth? We Think Global, But We Act Local! โขโ We Trust Only 20 People ! โขโ We Keep Track of Only 150 People! โขโ We Recognize Perhaps 1,000 Others! 2
- 3. Example 1 MacDonalds Hamburgers! โขโ Chorizo Burgers in Mexico! โขโ Fish Burgers in Nova Scotia! โขโ Asterix, the Belgian Comic Book Character has replaced Ronald MacDonald in European Advertising and Marketing! Culture Harmonization Images of Sex And Violence! โขโ Cross Cultural, Linguistic Boundaries! Trans-National Movies = Few Words! โขโ Sylvestor Stalone, Jim Carrey! EuroVision Music Show! โขโ Sex and Violence Images! โขโ Trans National! โขโ Trans Cultural! 3
- 4. Example 2 Marvel Comix Introduced Spiderman India in 2004! Local Indian Customs, Culture! โขโ Spider-Man Mythology More Relevant Locally! Pavitr Prabhakar Of Mumbai! โขโ Not Peter Parker of Queens, New York! Pavitr Leaps Rickshaws & Scooters! โขโ In Indian Streets! โขโ Swings From Taj Mahal! Spiderman (India) 4
- 5. Example 3 Internet Filtering! โขโ Sexual Taboos (Cultural)! โขโ Arab Countriesโฆ! โขโ Political Taboos! โขโ Chinaโฆ! One Nationโs Entertainment and Information is Another Nationโs Concern! Example 4 French & Dutch Euro NO Vote ! Infrastructure Harmonization YES! โขโ Euro! Political Harmonization NO! Cultural Harmonization NO! Contents Harmonization NO! โขโ LOCALIZATION INCREASING! โขโ GLOBALIZATION DECREASING! 5
- 6. Challenge to Nationhood Globalization of Culture Threatens National Sovereignty! United Nations Guarantees! 1.โ Territorial Integrity! 2.โCultural Integrity! Cultural Content Gap We Need to Support! โขโ Local Stories! โขโ Local Faces! โขโ Local Voices ! โขโ Local Language! 6
- 7. Local -> Global Actor Current CBC Challenges Cutbacks to Classical Music Support! โขโ CBC Vancouver Orchestra Eliminated ! โขโ Suspend Production of Classical CDs! โขโ Ehnes Grammy 1st and Last! โขโ Radio 2 Classical only 10 AM โ 3 PM! 7
- 8. Info Age Music Opportunities New Marketing for Classical Music! New Sales for Classical Music! Replace or Exceed Historic CBC Support! Need to Identify How to Promote Local Content! Promote Local Languages! Promote Local Culture! Promote Local Business! Expose Local Artists Globally! Monetize Music Use in New Ways! 8
- 9. Changing Entertainment Business 20th Century Model! โขโ Manufacturing and Selling Products! โขโ Supplier Centric! โขโ Controlled Distribution! 21sh Century Model! โขโ Monetizing Experiences! โขโ User Centric! โขโ Viral Distribution - P2P! โขโ Technically & Financially Necessary for TV/Film! Problem Not Unique to Canada Nordic Music! โขโ Danish! โขโ Finnish! โขโ Icelandic! โขโ Norwegian! โขโ Swedish! 9
- 10. Online Channel is Different Physical Distribution! โขโ Limited Shelf Space! โขโ Sheet Music! โขโ Recordings! โขโ Few Titles -> Most Consumption! Online Distribution! โขโ Unlimited Shelf Space! โขโ Many Titles -> Most Consumption! โขโ Long Tail Consumption Curve! Rise of Amateurism Home Recording Studios! Computer Notation Programs! โขโ Output is Digital File! MIDI! โขโ Imperfect But Easy and Universal! File-Sharing, P2P! โขโ Sampling! โขโ Remixing! โขโ Mashups! 10
- 11. Long Tail of Consumption Everything You Canโt Buy at the Local Mall, Where Shelf Space Limits Customer Choice! โขโ Back Catalog! โขโ Niche Audiences! โขโ Unusual Styles, Instrumentation! Total of Infrequently Accessed Content is Greater than Frequently Accessed Content! Long Tail Graph Power Law Curve! Yellow Portion is Long Tail! 11
- 12. Long Tail Book Sales Blue is [Nielson] Sales of Mall Stores! Red is Long Tail Sales of Online Store! Definition of Long Tail Key Factors! โขโ Cost of Inventory Storage! โขโ Cost of Distribution! When Costs are High, Only the Most Popular Products Can Be Sold! Example: Movie Rental Stores vs. NetFlix! โขโ Net๏ฌix ๏ฌnds that aggregate quot;unpopularquot; movies are rented more than popular movies! Cultural and political impacts! โขโ Minority Tastes are Catered to! โขโ Individuals Have Greater Choice! 12
- 13. But, How Can We Find Titles? Normal Search Engines Find Most Popular Titles First and Foremost! How Can We Search the Log Tail?! Communities of Interest! โขโ Sigs, Chats, BBs! Authorities! โขโ Professionals (Publications, Reviewers)! โขโ Academics! โขโ Peers! Contest Winners & Festivals! Automated Recommendations Niche Vox Populae ! Others Who Liked Your Choices Also Likedโฆ! Automated Analysis of Music! 13
- 14. Subscription Video Roku Net๏ฌix Box $100 + $9/mth unlimited! โขโ aggregate โunpopularโ movies are rented more then aggregate โpopularโ movies ! Subscription Audio Noank Model! 85% fees to Content Owners! China First! โขโ 24 million University Students! โขโ $10/semster content fee ($20 annual)! โขโ = $480 million! North America & other BRIC soon! Count Consumption! 14
- 15. We Were Couch Potatoes Now Weโre Interactive 15
- 16. Will We Be Fried Potatoes? Role of Music Centers Nordic Information Centres Have Greatly Increased Online Activities with Excellent Results for Local Record Companies, Promoters and Artists ! Canadian Music Centre Has Increased its Online Activities with Good Results and Could do More With Increased Support from Industry and its Members! 16
- 17. Key Issues How to Expose Audiences to Classical Music Content so as to Trigger them to Close Transactions?! โขโ Sell CDs! โขโ Sell Merchandise (Wolfgangโs Vault)! โขโ Subscription Service! โขโ Live Attractions! โขโ Advertising! The Future Is Not What it Used to Be A Student Said to Prof. Einstein: โThe Questions On This Yearโs Exam are the Same as Last Year.โ! Einstein Replied: โAhh, But This Year, ! THE ANSWERS ARE DIFFERENT โ! 17
- 18. Classical Music Communities New Models of Distribution! Soundstreams! Toronto! 080522! Paul Hoffert! 18