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The Future of Music and Digital Content: Mobile, Social and... PAID?

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I had the great pleasure to speak at the Future As Music (FAM) conference in Madrid / Spain, today. This event was organized by AIE (the Artists and Performers Society of Spain) and I was delighted to present alongside one of my favorite colleagues, famed mobilist and mobile content guru Tomi Ahonen.

My talk and presentation was on the juicy topic of "The Future of Music & Digital Content: Mobile, Connected, Social, Open... and Paid?" and included comments on: 1) why it makes no sense to disconnect fans from the Internet and expect them to then buy more 'legal' music 2) why the music industry must adapt to the new behaviors of 'the people formerly known as consumers' asap 3) why we have a 'digital toll-booth challenge' (see my column on Spotify) and how we need to structure 'music sales' going forward 4) why music is first an experience and a service, and only then a product (and how the industry can monetize this shift) 5) where the New Generatives will come from 6) why a collective digital music license makes sense - and much more. Here is the slideshow, below (you can download the PDF via slideshare, as well). Enjoy and spread the word!

Published in: Business, Technology
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The Future of Music and Digital Content: Mobile, Social and... PAID?

  1. 1. The Future of Music & Digital Content: Mobile, Connected, Social, Open... and Paid? by Gerd Leonhard www.mediafuturist.com twitter.com/gleonhard
  2. 2. We have a problem...
  3. 3. Disconnect fans to... sell more Music???
  4. 4. Source: Slideshare
  5. 5. So what are those new behaviors? • Access now comes before ownership • All-you-can-eat and unlimited offers, flat-fees & bundles are critical to success • ‘Feels Like Free’ is a crucial step to conversion • Paying with attention (i.e. advertising) is ok! • The Users are gaining power, all the time Welcome to the People formerly known as Consumers!
  6. 6. The Toll-Booth Challenge: how to make $$ with Access rather than Copies Source: istockphoto
  7. 7. Music is first a Service & an Experience - and only then (maybe) a Product.
  8. 8. Like it or not:Connected people ‘consume’ differently Time to accept, adapt and move forward! Access tru mps Copy Sh aring is the Key Driver
  9. 9. Copies don’t equal $$ anymore Source: kk.org
  10. 10. From Physical to Digital From Fixed to Mobile From Top-Down to Social From Consumers to Users
  11. 11. From Push to Pull
  12. 12. Soon: The New Premium The new Normal
  13. 13. The irreversible shift in Content & Media Co munity omnterf Con nv en C I ien ace texte c Content Timeliness Curation Content
  14. 14. Time to focus on the New Generatives Content Context Curation 5% Timeliness 20% Embodiment / Packaging 15% Relevance Others 15% 15% Content / Copy 10% 20% 100%
  15. 15. Music Commerce 2.0: don’t try to sell what is Ubiquitous - sell what is Scarce
  16. 16. Welcome to another pricing logic Price per Song Numbers of Users 100 75 50 25 0 Was Will be
  17. 17. New revenues from new collaborations Telecom TV Advertising Internet Mobile Content
  18. 18. Hybrid Models in many variations
  19. 19. Personal, digital consumer ‘Piracy’ is simply just Market Failure Source: CEA.org
  20. 20. This will not work
  21. 21. We have been here before D ! S E E N L I C
  22. 22. A Public License + Build-in Revenues + Proportional Distribution
  23. 23. Many other New Generatives Community Premium Services Permission High Definition & Premium Media Mobile Device Applications & Software Live-Concerts, Web-Casts, Virtual Shows... Flat Rates, Bundles, Revenue-Sharing A new and very lucrative Ecosystem can emerge on-top of the flat-rate
  24. 24. We don’t pay to eat all the food... we pay for access
  25. 25. Why this is good for the Creators Attention turns automatically into $$ Distribution is available to everyone, by default Many up-selling options will emerge Direct market access is included Marketing costs will be greatly reduced
  26. 26. Let’s change this film
  27. 27. The Music Industry needs to switch to Open Open licenses Open innovation Open distribution Open competition Open partnerships Open technologies Open data standards
  28. 28. Not Control and Protection but Engagement and Conversion
  29. 29. The rising tide floats all boats: Permission, Collaboration and $-Sharing is key
  30. 30. So why is there still so little revenue from Youtube, Myspace, Facebook...? • Advertisers are always 2-3 years behind • Lack of permission for premium and legal content slows adoption • Lack of public license has deterred new investors, and killed many startus • Mobile broadband and smart mobile devices are just now starting to take off
  31. 31. Every large audience can be monetized
  32. 32. Huge opportunities in curation, filtering, meaningful aggregation Source: Clay Shirky
  33. 33. versus
  34. 34. Free gets you to a place where you can ask to get paid. Quote by Fred Wilson, Union Square Ventures www.avc.com
  35. 35. Free to paid: examples
  36. 36. I pay - You pay - 3rd party pays
  37. 37. Why I have spend $1000+ on iStockphoto • Good quality images • Finding the right photo is quick and easy • The rights (licenses) are cleared • The price is right (well... mostly) • I don’t pay just for the content - I pay for ease of use, peace of mind, the interface, service & curation...!
  38. 38. Content<>Cloud<>$
  39. 39. New ways to package
  40. 40. New ways to ‘sell’
  41. 41. Virtual concerts and venues
  42. 42. Brands Music Agencies Advertisers Industry Media Legislation Government Telecom Regulation Google China President Kai Fu Lee: “Mutual Interest, rather than Monopoly, is the key to sustainable growth”
  43. 43. Summary
  44. 44. My Music 2.0 Book www.music20thebook.com (Lulu, print) www.payingwithattention.com (free PDF) www.musicfutures.com (freee mobile version)
  45. 45. Thanks for your time email me at gerd@mediafuturist.com twitter.com/gleonhard facebook: gleonhard more presentations at www.mediafuturist.com

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