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Content 2.0: Free vs Paid: Futurist Gerd Leonhard @ Tokyo 2.0

Mobile broadband Internet access and cheaper smart-phones and ubiquitous mobile devices are making sharing of digital content easier than ever before. Where is this going, once 2-3 Billion people are connected? Who will paid for what, why, when? What about the trend towards Free? Freemium? Feels like Free? Content 2.0 explained. More at www.mediafuturist.com Videos at www.gerdtube.net Follow me on Twitter: www.twitter.com/gleonhard

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Free vs Paid:
the Future of Digital Content

Gerd Leonhard at Tokyo 2.0 August 24, 2009
            ‣ Futurist
            ‣ Strategist
            ‣ Author & Blogger
            www.mediafuturist.com
            twitter.com/gleonhard
What I do:



            www.payingwithattention.com
                for free downloads
‣ Understand              Clients such as Google, Nokia,
                            DDB, Sony BMG, Orange /
‣ Imagine                France Telecom, BBC, ITV, RTL,

‣ Design
                         The European Commission, IBM,
                               Omnicom, Siemens...

 www.mediafuturist.com
 twitter.com/gleonhard
Content 2.0: Free vs Paid: Futurist Gerd Leonhard @ Tokyo 2.0
Content 2.0: Free vs Paid: Futurist Gerd Leonhard @ Tokyo 2.0
Connected people ‘consume’ differently!

   Real-Time E verything

C ult(ure) of P articipation
     The Li nk Economy
Sh aring is the key driver
In the Content Industries,

   Command & Control

  is irreversibly becoming

Cordinate & Cultivate

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Content 2.0: Free vs Paid: Futurist Gerd Leonhard @ Tokyo 2.0

  • 1. Free vs Paid: the Future of Digital Content Gerd Leonhard at Tokyo 2.0 August 24, 2009 ‣ Futurist ‣ Strategist ‣ Author & Blogger www.mediafuturist.com twitter.com/gleonhard
  • 2. What I do: www.payingwithattention.com for free downloads ‣ Understand Clients such as Google, Nokia, DDB, Sony BMG, Orange / ‣ Imagine France Telecom, BBC, ITV, RTL, ‣ Design The European Commission, IBM, Omnicom, Siemens... www.mediafuturist.com twitter.com/gleonhard
  • 5. Connected people ‘consume’ differently! Real-Time E verything C ult(ure) of P articipation The Li nk Economy Sh aring is the key driver
  • 6. In the Content Industries, Command & Control is irreversibly becoming Cordinate & Cultivate
  • 7. Content Futures: Copy $ down, Attention $$ up Copy Based Revenues Attention Based Revenues 10.0 7.5 5.0 2.5 0 Was Is Soon Near Future Mid-term Future
  • 8. The challenge: Creating New Models! Content Consumption (all) Revenue Potential Success with Traditional Content Models Was Is 2 years 5 years
  • 9. Mobile: Great User Interface & User Experience changes everything
  • 10. So will people read like this? 2012 Book Publishing Revenues: $43 Billion in U.S. (BISG) $120 Billion Global (est)
  • 11. Only an average of 20% a newspaper’s income is spend on CONTENT CREATION. Thanks to Flickr.com/alextorrenegra
  • 13. = + +
  • 14. Our new reality: Listen / Use = Copy
  • 16. What are we paying for, here...? Not to eat all the food... but to get Access!
  • 17. Now, Content is first a Service & Experience, and only then (maybe) a Product.
  • 18. Bundling is the Future
  • 19. It used to be... Premium “Option” “Extra” Default
  • 20. Soon: The New Premium The new ‘Normal’
  • 21. If Access replaces Ownership as Default...
  • 23. How will access to content be paid for? Paid by 3rd Parties Flat-Rates Bundles Access
  • 26. A key task now - and even more so, in the future:
  • 27. A crucial shift in the content industries: New Generatives • Content ‘Pre-Web’: Presenting - and selling - professionally produced Content • Content ‘Web-Native’: Presenting - and selling - Context, People, Relevance, Packaging, Timeliness - and many different kinds of Content!
  • 28. Free gets you to a place where you can get paid. Quote by Fred Wilson, Union Square Ventures www.avc.com
  • 29. Free gets you to a place where you can get paid.
  • 30. • Provide free and easy access to content to anyone that is interested * • Subsidize the free content with next- generation advertising, affiliates, data-mining and other ‘New Generatives’ • Addict the users to the offerings by providing more and more values all the time * • Offer a myriad of ways of getting further engaged & attracted to Premium offerings • Convert between 5%-40% of free users to paying users
  • 31. (Trans)Action Data Creation Engagement Attention Conversations ‘Feels Like Free’ Content
  • 33. Crucial: the right when, how, where!
  • 34. We need web-native toll-booth strategies
  • 36. The 2-sided TeleMedia Model - starting with Digital Music Content Content Owners & Users (fka Creators Consumers)
  • 38. It’s hard to ‘own’ copies now but You can still own the Context, the Meaning, the Relevance, the Experience, the Embodiment, the Timing...
  • 39. The Future of Content Open Mobile Freemium Connected Collaborative Interdependent
  • 40. Thanks for listening! ★ email me at gerd@mediafuturist.com ★ twitter.com/gleonhard ★ facebook: gleonhard ★ more presentations at www.mediafuturist.com