Lecture given at C'n"B Creative Business Conference Cologne 25 June. Outlines The Sound Horizon's 3Cs model for successful services.

1. THE SOUND HORIZON
UNLOCKING NEW VALUE WITH APPS
Dominic
Pride
C’N’B
Creative
Business
Convention
Cologne
June
25
Monday, 28 June 2010 1

2. ABOUT US
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

3. ABOUT US
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

4. ABOUT US
sight,
Translating in
nd
intelligence a
things
inn ovation into
people use.
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

5. ABOUT US
sight,
Translating in
nd
intelligence a
things
inn ovation into
people use. Fas
t!
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

6. ABOUT US
sight,
Translating in
nd
intelligence a
things
inn ovation into
people use. Fas
t!
Dominic
Pride:
Managing
Director
/
Principal
Consultant
•Strategic
change
•Innova0on
management
•Product
marke0ng
•Mobile
and
converged
service
development
•Experience
with
operators,
handsets,
agencies,
content
brands,
labels,
associa0ons
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

7. ABOUT US
sight,
Translating in
nd
intelligence a
things
inn ovation into
people use. Fas
t!
Dominic
Pride:
Managing
Director
/
Principal
Consultant Some
of
our
Clients
•Strategic
change
•Innova0on
management
•Product
marke0ng
•Mobile
and
converged
service
development
•Experience
with
operators,
handsets,
agencies,
content
brands,
labels,
associa0ons
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

8. ABOUT US
sight,
Translating in
nd
intelligence a
things
inn ovation into
people use. Fas
t!
@thesoundhorizon
#CNB10
Dominic
Pride:
Managing
Director
/
Principal
Consultant Some
of
our
Clients
•Strategic
change
•Innova0on
management
•Product
marke0ng
•Mobile
and
converged
service
development
•Experience
with
operators,
handsets,
agencies,
content
brands,
labels,
associa0ons
Dominic
Pride
C ’n’B
Conven0on
June
25,
2010
2
Monday, 28 June 2010 2

9. Sources:
,Gartner
Inc.
Apple,
Getjar,
Juniper,
Nokia,
Distimo
Monday, 28 June 2010 3

10. THE APPS EXPLOSION
Sources:
,Gartner
Inc.
Apple,
Getjar,
Juniper,
Nokia,
Distimo
Monday, 28 June 2010 3

11. THE APPS EXPLOSION
•Billions
of
downloads
– Apple:
5bn
– Getjar:
1bn
– Nokia
OVI:
1.6m+
/
day
Sources:
,Gartner
Inc.
Apple,
Getjar,
Juniper,
Nokia,
Distimo
Monday, 28 June 2010 3

12. THE APPS EXPLOSION
•Billions
of
downloads
– Apple:
5bn
– Getjar:
1bn
– Nokia
OVI:
1.6m+
/
day
• Real
money
– $2.5bn
in
2009
– -­‐Apple:
$1bn
in
developer
revenue
Sources:
,Gartner
Inc.
Apple,
Getjar,
Juniper,
Nokia,
Distimo
Monday, 28 June 2010 3

13. THE APPS EXPLOSION
•Billions
of
downloads •Drivers
– Smartphones
– Apple:
5bn
–power
/
experience
– Getjar:
1bn
–price
– Nokia
OVI:
1.6m+
/
day
– Unlimited
data
plans
– Developer
ecosystem
• Real
money
– $2.5bn
in
2009
– -­‐Apple:
$1bn
in
developer
revenue
Sources:
,Gartner
Inc.
Apple,
Getjar,
Juniper,
Nokia,
Distimo
Monday, 28 June 2010 3

14. THE APPS EXPLOSION
•Billions
of
downloads •Drivers
– Smartphones
– Apple:
5bn
–power
/
experience
– Getjar:
1bn
–price
– Nokia
OVI:
1.6m+
/
day
– Unlimited
data
plans
– Developer
ecosystem
• Real
money •Even
more
growth
– $2.5bn
in
2009 – 20bn
+
downloads
by
– -­‐Apple:
$1bn
in
2013
developer
revenue – $25-­‐30bn
market
Sources:
,Gartner
Inc.
Apple,
Getjar,
Juniper,
Nokia,
Distimo
Monday, 28 June 2010 3

15. Monday, 28 June 2010 4

16. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

17. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

18. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

19. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

20. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

21. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

22. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

23. AND MOBILE APPS ARE JUST THE START
Monday, 28 June 2010 4

24. AND MOBILE APPS ARE JUST THE START
Apps
will
become
the
dominant
way
that
content
goes
go
market
through
CE
channel
Monday, 28 June 2010 4

25. Image:
Gustavb
via
Wikipedia
under
Creative
Commons
License 5
Monday, 28 June 2010 5

26. A FIRE NEEDS MORE THAN JUST FUEL
Image:
Gustavb
via
Wikipedia
under
Creative
Commons
License 5
Monday, 28 June 2010 5

27. A FIRE NEEDS MORE THAN JUST FUEL
Image:
Gustavb
via
Wikipedia
under
Creative
Commons
License 5
Monday, 28 June 2010 5

28. A FIRE NEEDS MORE THAN JUST FUEL
Three
elements
are
needed
to
start
a
flame
Image:
Gustavb
via
Wikipedia
under
Creative
Commons
License 5
Monday, 28 June 2010 5

29. SERVICES NEED MORE THAN CONTENT
3Cs
Model
Copyright
Dominic
Pride
/
The
Sound
Horizon
2010.
All
rights
reserved 6
Monday, 28 June 2010 6

30. SERVICES NEED MORE THAN CONTENT
Content
– Media
– User-­‐generated
– Metadata
3Cs
Model
Copyright
Dominic
Pride
/
The
Sound
Horizon
2010.
All
rights
reserved 6
Monday, 28 June 2010 6

31. SERVICES NEED MORE THAN CONTENT
Context
– Time
– Device
/
Environment
– Location
Content
– Media
– User-­‐generated
– Metadata
3Cs
Model
Copyright
Dominic
Pride
/
The
Sound
Horizon
2010.
All
rights
reserved 6
Monday, 28 June 2010 6

32. SERVICES NEED MORE THAN CONTENT
Community
– Bonds
with
friends
– Social
capital
– Wisdom
of
crowds
Context
– Time
– Device
/
Environment
– Location
Content
– Media
– User-­‐generated
– Metadata
3Cs
Model
Copyright
Dominic
Pride
/
The
Sound
Horizon
2010.
All
rights
reserved 6
Monday, 28 June 2010 6

33. SERVICES NEED MORE THAN CONTENT
Community
– Bonds
with
friends
– Social
capital
– Wisdom
of
crowds
Context
– Time
– Device
/
Environment
– Location
Content
– Media
– User-­‐generated
– Metadata
Three
“Cs”
are
needed
to
make
compelling
services
and
apps
3Cs
Model
Copyright
Dominic
Pride
/
The
Sound
Horizon
2010.
All
rights
reserved 6
Monday, 28 June 2010 6

34. FRAGMENTATION OF RIGHTS
7
Monday, 28 June 2010 7

35. FRAGMENTATION OF RIGHTS
• The
broken
model
of
music
licensing
– Publishing
/
Audio
/
Visual
/
Moral
– Mechanical
/
Performance
– Territorial
7
Monday, 28 June 2010 7

36. FRAGMENTATION OF RIGHTS
• The
broken
model
of
music
licensing
– Publishing
/
Audio
/
Visual
/
Moral
– Mechanical
/
Performance
– Territorial
• The
competition
for
content
rights
– New
services
will
compete
for
same
rights
– Existing
creative
and
commercial
relationships
in
flux
– Creator
back
in
control
7
Monday, 28 June 2010 7

37. DISTRIBUTION: THE NEW SILOS
X
Monday, 28 June 2010 8

38. DISTRIBUTION: THE NEW SILOS
• Mobile
and
converged
channels
are
breaking
down
the
barriers
within
content....
.......but
new
ones
are
emerging
in
distribution
• Challenges
to
simple
“Call
to
action”
X
Monday, 28 June 2010 8

39. A CLEAR CHOICE: DEFEND OR BUILD
8
Monday, 28 June 2010 9

40. A CLEAR CHOICE: DEFEND OR BUILD
• “Protecting
the
value
of
our
content”
– Fighting
with
free
– Declining
market
– 50%
drop
in
last
10
years
– Value
proposition
of
one
more
track
– You
only
own
one
“C”
8
Monday, 28 June 2010 9

41. A CLEAR CHOICE: DEFEND OR BUILD
• “Protecting
the
value
• “Creating
new
of
our
content” customer
value”
– Fighting
with
free – Monetisable
– Declining
market environment
– 50%
drop
in
last
10
– Expanding
market
years – 10
x
growth
in
next
3
– Value
proposition
of
one
years
more
track – Owning
all
of
the
3
“C”s
– You
only
own
one
“C” – Content
– Context
– Community
8
Monday, 28 June 2010 9

42. THE SOUND HORIZON
Thank you!
dominic@thesoundhorizon.com
www.thesoundhorizon.com
@thesoundhorizon
Monday, 28 June 2010 10