SDN Finland’s National Conference

1. It’s the end of the world as we know it
26.4.2018 1
Turo Pekari
#HKISDNC18 25.4.2018

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5. 26.4.2018 Source: IFPI FInland 5

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8. European digital single market
Value Gap
Pan-European licensing hubs
Direct licensing
DIY licensing
Emerging competition by societies and commercial players
Royalty free music services
Music AI
The future of blanket licence
Securing existing broadcast and radio licensing revenues
Growing importance of domestic repertoires

9. Music industry technology trends
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blockchain
VR
unified IP platforms
(IP stack)
music information
retrieval
brain interfaces
emotion data
applications
AR
content recognition
technologies
music as medicine
recommendation algorithms
AI in music production Intelligent music AI
Smart contracts
music and health
dynamic licensing
automized content pricing
2018 2023 2028
machine learning
Software robotics/automatisation
generative content
decentralized autonomous organisations (DAO)
Voice interfaces
affective technologies
IoT, sensors
metadata & APIs

10. Key technology trends shaping music
rights management
Real-time Decentralization
Machine
learning & AI
Interoperability
Metadata
explosion

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12. Teosto Futures Lab innovation platform is Teosto’s
approach to research and development – the way
we search for new business opportunities and
validate them, using an agile and test-driven
development approach
Focus on networked open innovation, agile and
customer driven development, service design and
systematic technology and market research
Partnering with the leading global experts,
companies and academic institutions

13. Future concepts
Innovation networks and ecosystems
Open data and APIs
Funding expertise
Multi-disciplinary research
Innovation policy initiatives
Early-stage investments
Startup advisory
Start-up and developer community
Events, challenges and competitions

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Where to search new
ideas?
How to innovate? How to create new value?
Directions. Orientation.
Market Iinsight.
Defining principles Objectives Strategy
Flexible work processes.
Adoption of new skills. Fast
desicion-making. Resources.
Methodology.
Networks. Open Innovation.
Proof of concepts. Research.
External funding
New business. Concretizing
the value of innovation
actions
Models for new value
creation

15. Content Framework
DATA, ANALYTICS,
ALGORITHMS, AI
TECHNOLOGY,
PLATFORMS
VALUE CREATION
AND BUSINESS
MODELS
CONSUMERS AND
CONTENT
MARKETS
IMPACT AND
RELEVANCE OF
MUSIC IN SOCIETY
DISRUPTIVE POTENTIAL?

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• We have an open mind, look at the bigger picture and beyond ”day-to-
day”
• We look at Our Industry, Other Industries & New trends and technologies
• We focus on User-Centric Value creation
• If a pilot works we work with the business to implement it at scale
• We work with the business and external partners to pilot new ideas

17. IDEO: Human Centered Design
ABSTRACT
CONCRETE
TIME
OBSERVATION, DATA
QUESTIONING
INTERPRETATIONS
HYPOTHESIS
BIG PICTURE
POSSIBLE SOLUTIONS
DEFINING THE SOLUTION
PROTOTYPING, PILOTING
IMPLEMENTATION PLAN
1. HEAR 2. CREATE 3. DELIVER
1. EXPLORATION BASED ON
THE TFL CONTENT
FRAMEWORK
2. DEVELOPING INNOVATION
LEADS INTO INNOVATION
CONCEPTS
3. BUSINESS CONCEPTS,
PROTOTYPES, POCs

18. IDEO: Human Centered Design
BUSINESS
(viability)
HUMAN
(desirability)
TECHNOLOGY
(feasibility)
..integrating the needs of people with the
possibilities of technology and the
requirements for business success.
(www.ideo.com)

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Closed innovation Open innovation Open innovation 2.0
Dependency Independency Interdependency
Subcontracting Cross-licensing Cross-fertilization
Solo Bilateral Ecosystem
Linear Linear, leaking Nonlinear mash-up
Linear subcontracts Bilateral Triple or quadruple helix
Planning Validation, pilots Experimentation
Control Management Orchestration
Win–lose game Win–win game Win more–win more
Box thinking Out of the box No boxes!
Single entity Single discipline Interdisciplinary
Value chain Value network Value constellation
How innovation modes have evolved. Source ”Twelve principles for open innovation 2.0”, Martin Curley
Nature.com 17.5.2016 http://www.nature.com/news/twelve-principles-for-open-innovation-2-0-1.19911

20. 3 Horizons of Growth

21. Innovation ecosystems
”[in the music industry] Just a tech play doesn’t do enough.” Dan Harple, OMI
R&D Based
Industry
Academia
(Institutions
& Research)
Policy/
Government
Startups &
Spinouts,
Entrepeneur
Education
Funding/
Early Stage
Capital
MIT Real /
Pentalytics framework

22. Teosto Futures Lab future concepts
Polaris Future Lab R&D initiative
Stakeholder collaboration
Teosto Futures Lab spin-offs
Network building, knowledge share, advisory
Funding
agencies
Innovation
ecosystems
Music &
tech
startups
Developer
community
Academic
institutions
Policy-
makers
Events,
hackathons,
challenges
Music
creators
Music
industry
organisations

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DECENTRALIZATION

27. Use cases for blockchain?
• Music metadata management
• Collective management performance enhancement by
improving current collaboration practices
• Information exchange between different stakeholders in
the music industry
• Identity Management (IPI) using blockchain
• Dynamic licensing/dynamic pricing
• Micropayment solutions

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32. Music Tech Fest, #MTFlabs Helsinki 24-29.11.2018
”In Helsinki, we worked closely with performing rights organisation Teosto, who are exploring
new avenues and methods to represent composers in the 21st century. Their insights into the
needs and concerns of artist and creatives, and the possibilities that blockchain and other
distributed ledger technologies offer were an important component of the 5-day
labs in Helsinki.” – Andrew Dubber, Director, MTF

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37. Advanced matching
A Machine Learning Project
To improve automatic matching of reported music usage and musical works

38. http://jukedeck.com

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41. Music data and APIs
• All transactions and reports from the use of music works
will be automatised in the future.
• The only possibility to ensure ways to make business with
music rights in the future is to ensure that rights data is
linked from closed silos to the real world.
• Opening data is securing the future music licensing
business, a possibility to track business and new value
creation that include using of works repertoires and return
a part of the value to the right holders.
• Opening user-friendly APIs is the best way to create
bridges from data silos to the real world.

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43. Teosto Open API
Live music data available for
developers via an open API at
api.teosto.fi.
The datasets include:
• 60 000+ gigs per year
• venue information
• geolocation data
• gig dates
• performers and setlists
• authors and publishers of
performed songs
Data is available for non-
commercial use.
api.teosto.fi

44. API Ecosystem
To make our data available to partners

45. Hackathons and competitions
• Teosto Futures Lab is actively involved
in music and tech industry hack events
and competitions, such as Hack4FI -
Hack your Heritage 2017 & 2016, EU
Hackathon 2016, Ultrahack 2016 &
2015, Open Finland Challenge 2015,
and Emotion Hack Day events.
• The 2015 TeostoHack resulted in
Teosto’s investment in the Finnish live
music startup Artist Exchange in August
2016.

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55. NEMO@Sideways Festival:
Using facial recognition
technologies and cameras to detect
emotions from the live audience
and algorithms and AI to produce
3D installation ”Olento”, that
expressed the overall audience
experience during music festival
gigs.

58. #bananas4sonar prototype

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#bananas4sonar: future use cases
• Service for live streaming of concerts where sharing of
music experiences is enabled by visualising or otherwise
transmitting information about the
emotions/reactions/excitement level of other online
viewers, in real time
• A component for VR music environments, where sensor
data could be used for enhancing the virtual live music
experience
• Service for music festivals and events for visualising the
”buzz” at each event or each stage at a festival, a ”vibe
meter”

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68. Teachers Training Program Creative Project Model for
schools and kindergartens

69. Curriculum
Community
and support
INTO launched as a Global Educational Export Concept
Teacher
training
Expertise in
technology
Learning
materials

70. WE BELIEVE IN
Creativity,
Curiosity and
Freedom
Warm and
Encouraging
Learning
Environment
Participation
and
Engagement
Teamwork and
Learning
Together
Positive
Teacher
Attitudes and
Dedication
Friendships
and
Appreciation
in the School
Community

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76. turo.pekari@teosto.fi
@s1truuna