Gerd Leonhard, Digital Music Entrepreneur & ‘Music & Media Futurist’
                www.mediafuturist.com
               ...
Today, 2 things:

 1. Digital music distribution is
    out of control - and that will
    be a very good thing for all
  ...
New technologies usually disrupt severely
but always make the market bigger




             Big technology changes always...
THIS is the
                     end of
                     controlling
                     distribution
               ...
Controlling music is an obsession of the past
Participating in the Use of Music is the Future
                            ...
So why do we still have DRM?




                          Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
You think music sharing is out of control now ?
Think again.....

                                  Today, we are here



...
8

Gerd Leonhard Music & Media Futurist www.mediafuturist.com
The reality:



  75.000 different devices that play MP3 files

  Approx.   75 devices that play DRM’ed files



         ...
Soon...
   Today                1 Billion+ devices
75-80 Million devices




                         Gerd Leonhard, Music...
So...


   Which of the two options
   creates a better market place,
   benefits everyone, and will
   make a ton more $:...
The business models that
empower the end users are
  the ones that will win



              Gerd Leonhard, Music & Media ...
The Reality: Finding and Being
Found is what generates the $$$$
 - it’s the BRAND not the Some
                           ...
From ‘The Network’ to
         NETWORKED




                    Gerd Leonhard Music & Media Futurist www.mediafuturist.com
I click - therefore I create value....




     I program my
     media --- it does
     not program me!
                 ...
Second: the issue of Ubiquity - Music Like Water




                            Gerd Leonhard, Music & Media Futurist www...
Water...




 • Everybody uses everybody pays (but not
   at each and every point of use)
 • Tap water is ubiquitous and ‘...
Worldwide, almost a $100 Billion per year is
spent for something you could also get for free!




                        ...
$ 45




$0
     Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
How is Music... Like Water?

 •   Music is a basic need, to all, not a luxury (for some)

 •   Everybody uses, everybody p...
Music Like Water would give us growth... like this:




                                   Gerd Leonhard, Music & Media Fu...
Why buy bottled water if tap water is free?

                         • Guaranteed quality
                         • Prem...
But this is the biggest paradigm shift since the printing press


                                                        ...
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
And we must finally rid ourselves from the
obsession with selling   copies




                            Gerd Leonhard, ...
The business of
 just ‘selling
copies’ is OVER
        Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
The new
  business is
selling ACCESS
 first, and then
  some more...
        Gerd Leonhard, Music & Media Futurist www.med...
Based on these principals


• Not Prevention but Participation
• A new, collective license for the digital use of music
  ...
Challenge your assumptions
 Practice un-control... and get more $$
  Think ‘Music’ not COPIES
    Lose the obsession with ...
So:


          Get out
        IN FRONT
      of a changing
      market place-
          NOW
                Gerd Leonha...
Gerd Leonhard ‘Music & Media Futurist’
    www.mediafuturist.com
    www.gerdpresents.com
           CEO, www.sonific.com
...
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Music2 Gerd Leonhard on the Next Generation of the Music Business

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Gerd Leonhard presents a slideshow with some key points covered in his new book, Music2.0 (January 2008). More details at www.mediafuturist.com

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Music2 Gerd Leonhard on the Next Generation of the Music Business

  1. 1. Gerd Leonhard, Digital Music Entrepreneur & ‘Music & Media Futurist’ www.mediafuturist.com www.gerdpresents.com CEO, www.sonific.com The Future of Music & Music Like Water gerd@musicfuturist.com www.gerdleonhard.net (blog)
  2. 2. Today, 2 things: 1. Digital music distribution is out of control - and that will be a very good thing for all of us! 2. ‘Music like Water’ will make all of us a lot more money than “Music on Plastic” Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  3. 3. New technologies usually disrupt severely but always make the market bigger Big technology changes always take longer than we think, but then whe they do happen, they happen much bigger than anyone expected... and that time is NOW. 2007 is a year of drastic changes. Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  4. 4. THIS is the end of controlling distribution - and the beginning of a new boom! Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  5. 5. Controlling music is an obsession of the past Participating in the Use of Music is the Future Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  6. 6. So why do we still have DRM? Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  7. 7. You think music sharing is out of control now ? Think again..... Today, we are here Tomorrow: SHARING x 1000 Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  8. 8. 8 Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  9. 9. The reality: 75.000 different devices that play MP3 files Approx. 75 devices that play DRM’ed files Gerd Leonhard, Music & Media Futurist gerd@musicfuturist.com
  10. 10. Soon... Today 1 Billion+ devices 75-80 Million devices Gerd Leonhard, Music & Media Futurist gerd@musicfuturist.com
  11. 11. So... Which of the two options creates a better market place, benefits everyone, and will make a ton more $: an open format, or a closed format? Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  12. 12. The business models that empower the end users are the ones that will win Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  13. 13. The Reality: Finding and Being Found is what generates the $$$$ - it’s the BRAND not the Some COPY smart stuff from PWC Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  14. 14. From ‘The Network’ to NETWORKED Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  15. 15. I click - therefore I create value.... I program my media --- it does not program me! Gerd Leonhard, Music & Media Futurist
  16. 16. Second: the issue of Ubiquity - Music Like Water Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  17. 17. Water... • Everybody uses everybody pays (but not at each and every point of use) • Tap water is ubiquitous and ‘feels like free’, but ‘better water’ generates $100 Billion per year Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  18. 18. Worldwide, almost a $100 Billion per year is spent for something you could also get for free! Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  19. 19. $ 45 $0 Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  20. 20. How is Music... Like Water? • Music is a basic need, to all, not a luxury (for some) • Everybody uses, everybody pays (but it can ‘feel free’) • A ‘right of access’ for all, anytime, anywhere • Premium water costs extra, too • ‘Normal’ use ‘feels like free’, excess use costs extra •Ubiquity INCREASES value Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  21. 21. Music Like Water would give us growth... like this: Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  22. 22. Why buy bottled water if tap water is free? • Guaranteed quality • Premiums such as better sound • Added values and more options (interactivity) • Timeliness (not yet on tap everywhere) • “It’s special” Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  23. 23. But this is the biggest paradigm shift since the printing press 25% buy Scarcity Ubiquity 95% buy 23 Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  24. 24. Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  25. 25. And we must finally rid ourselves from the obsession with selling copies Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  26. 26. The business of just ‘selling copies’ is OVER Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  27. 27. The new business is selling ACCESS first, and then some more... Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  28. 28. Based on these principals • Not Prevention but Participation • A new, collective license for the digital use of music - similar to the broadcast (i.e. radio) license • Remuneration must be based on monitoring, tracking, and accounting of ACCESS and USE, not just on Unit Sales (or Performance) • Copyright is the principle, Usage Right the reality Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  29. 29. Challenge your assumptions Practice un-control... and get more $$ Think ‘Music’ not COPIES Lose the obsession with hits Appoint new, clued-in leaders Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
  30. 30. So: Get out IN FRONT of a changing market place- NOW Gerd Leonhard Music & Media Futurist www.mediafuturist.com
  31. 31. Gerd Leonhard ‘Music & Media Futurist’ www.mediafuturist.com www.gerdpresents.com CEO, www.sonific.com Thanks for listening- and talk to me! gerd@musicfuturist.com www.gerdleonhard.net (Blog) Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

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