Creative Industries Meet Connected Customers

THE SOUND HORIZON Ex Sl te R ide nde em s d ix har e WHEN CREATIVE INDUSTRIES MEET CONNECTED CONSUMERS DominicPride WorldE/ReadingCongress 16May2012 @thesoundhorizon

TODAY... Publishers/Whereareyounow? Whatcanwelearnfrom: RecordedMusic Focuson:Spotify TV Focuson:TopGear Games Focuson:Cityville Creatingnewvalue

WHERE ARE YOU NOW?

“NAPSTER MOMENT” AVOIDED?World’s(largest(recorded(music(market(lost(2/3(of(consumer(spend(since(ﬁlesharing(began. 1999: Napster 2003: -64% iTunesSource: Michael DeGusta: The Understatement http://ow.ly/aJixq Inflation and population adjustedQuoted in: Silicon Alley Insider Feb. 18, 2011 http://ow.ly/aJiC5

DIGITISATION: MISSION ACCOMPLISHED?

Click this bubble to see the YouTube VideoFrom ASDF Movie 4 YouTube: http://ow.ly/aJYj8

Your customers You’re are “doing a “doing an book.” internet.”

READING IS BEING DEMATERIALISED Physical Digital ✓Visible X"Visible ✓Tangible X"Tangible ✓Valuable ?"Valuable

UG C S e lf- P ub CoCu n sto nec me ted rs Ha So rd ftw wa a AND CAUSING DISRUPTION re re Se ar ch

SO WHAT CAN WE LEARN FROM OTHER INDUSTRIES?

1. DIGITISATION CREATES A VALUE GAP Keane Strangeland Album Guardian MP3 iPad edition £4.99 monthly Call of Duty subscription Black Ops £9.99 Zombies App £4.99 Keane Strangeland Album3 CD The Guardian £8.99 Print edition: Mon-Sat for 4 weeks: Call of Duty £32.40 Black Ops PS3 £23.99

2. WE ALL PLAY ON THE SAME PITCH Digital Book Stores / ServicesNews & SocialPrint NetworkingMedia PersonalGames Media TV and MoviesPersonal UtilitiesMedia UGC

3. DIGITAL DISRUPTION NEVER ENDSDigitisationisnotaone/timeprocess./Digitaldoesnot“replace”physical ne ve r/Digitisationtakesusintopermanentchange/Takesusfromclosedvaluechaintoopenecosystem

4. DIGITAL CHANGES CONSUMER NEEDS Physical Digital• Ownership • Access• Objects • Experiences• Consumption • Interaction

WHAT CAN WE LEARN FROM.... RECORDED MUSIC ?

WHAT’S GOING ON?• Downloadsprovideslowgrowth – Albumsbecome“unbundled” – iTunesdominates• Cloud&Streamingmodelsemerge – Unlimitedaccess – Serviceandcommunity/led• Newgeneratives – Branddealsproliferate – 360dealsfornewrevenues

FOCUS ON...SPOTIFY Streaming(music(service(capturing(audience,(mindshare(and(revenueWide"range"of"mobile"apps Desktop"software Deep"2Dway"Facebook"integration

FOCUS ON... SPOTIFY Streaming(music(service(capturing(audience,(mindshare(and(revenue Spo$fyInNumbers Ac#ve&Users 15m 20% Premium&Subscribers 3m No.of&songs 16m Facebook&Shares 1.5bn Paid&to&rights&owners $250mSource; Spotify Fast Facts, Spotify CEO Daniel EK The Next Web 18 April http://ow.ly/aKpMg

WHAT DOES SPOTIFY TELL US? ng: Learni Early 1. Engage rst, : Aud ience Fi 2. Freemium etise them mon vice 3. Value in Ser

WHAT CAN WE LEARN FROM.... TV & FILM ?

WHAT’S GOING ON?• EPGBreakdown – Catch/up,ondemanderodeschedules – “Appointmenttoview”goessocial• OverTheTop – Web=TV=Web – Challengestocableandmonetisation• Mobiledistraction – Mobile/tabletinteraction – Tabletasconsumptionplatform

FOCUS ON.. TOP GEAR BBC(Worldwide’s(top(motoring(programme(has(achieved(ubiquity(in(digital(channels(( FromscheduledTV programming.. ..tosocialmedia interactions... ..to Google Play and...to website and online ..to iPlayer and YouTube iOS apps, games,games... programming... podcasts, books, audiobooks..

WHAT DOES TOP GEAR TELL US? ng: Learni nition brand = recog 1. Strong ce ollow s audien 2. C ontent f vant ise w here rele 3 . Monet

WHAT CAN WE LEARN FROM.... GAMES?

WHAT’S GOING ON?• Disruptioninplatforms – mobilechallenginghandheld&console – SteamdominatesPC• Connectedgamers – challengeof“bigdata” – gamesin“permanentbeta”• Riseofsocialgaming – Facebookasdestination – mobileextendssocial

FOCUS ON...CITYVILLE Zynga’s(Cityville(exempliﬁes(social(gaming(with(40m+(monthly(users( CityvilleInNumbers Daily&Ac#ve&Users 6m Monthly&Ac#ve&Users 39.7m Likes&on&Facebook 24.9m Zynga&average&daily& $0.055 bookings&per&ac#ve&user Inherently"social"activity"embedded"in"social"platform In"D"game"monetisation" through"virtual"goodsSources: Appdata, Chicago Tribune Feb 1 2012 http://ow.ly/aKvD8, Zynga Q1 results http://ow.ly/aKyjj

WHAT DOES CITYVILLE TELL US? ng: Learni tions ts = Destina 1. SocNe nt of isation at poi 2 . Monet ion inspirat ges ectiv ity chan 3. Conn games: e -dialogu beta -per manent

TAKEAWAYS FOR PUBLISHERS Physical Digital• Innovateandpartnerwithservicesasearlyaspossible• Createandextendstrongauthor/ledandcuratorialbrands• Enableuser<>useranduser<>authordialogue

3Cs - FRAMEWORK FOR VALUE CREATIONCommunity – Bonds"with"friends – Social"capital – Wisdom"of"crowdsContext – Time" – Device"/"Environment – LocationContent – Media – UserDgenerated – Metadata 30

Why just do an (e-)book?when your users expect “an internet?”

THE SOUND HORIZON Thank You! dominic@thesoundhorizon.com slideshare.net/thesoundhorizon @thesoundhorizon Linkedin:Books2.0

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Creative Industries Meet Connected Customers

by The Sound Horizon on May 16, 2012

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