The Future of Music: Mobile,
Video, Social, and...Paid?
by Gerd Leonhard
www.mediafuturist.com
www.twitter.com/gleonhard

IFPI

What’s important *in this order
Talent & Merit
Building an Audience
Getting Recognition
Generating Income

Control = Money

Connect with Fans, Offer Value,
Give Reason to Buy = Money
Control ≠ Money

Does Protection really make Money...?

Music is already in the Cloud
300+ ways to share Music!

Tomorrow
Cheap, ubiquitous, mobile, social
Connectivity
Today

A connected world is a different world
New Behaviors
New Standards
New Social Contracts
New Ways of Remuneration
Ars Electronica 2008

Copy Economy
Access | Usage |
‘Cloud’ Economy

The Future of Music ‘Consumption’

It’s all about this, first (and then... to own!)

The Toll-Booth Challenge
how to monetize access rather than copies
Source: istockphoto

Copy Economy
License
Access Economy

A collective, compulsory blanket
license for Music on the Internet

Hat tip to Jim Griffin
• Standardized, public licensing terms *
• Transparent system of how income is
distributed (*initially by country, or region)
• One-stop licenses for all rights, collectively
• No differentiation between streaming or
downloading (instead, it’s all just ‘use’)
• License fees per user / month, or a
percentage of revenues
• License fees can generated in many localized
variations (“I pay, you pay, they pay...”)

We have been here before
D !
S E
EN
L I C

Just imagine:
If 900 Million people could generate only £ 10
per year / per person, £ 9 Billion would be
available for paying artists.
••••
If a blanket license for digital music was
available, the license fees per user could be
entirely funded by advertisers, brands,
telecoms, device makers and others!

Hat tip to Jim Griffin
per week

Could Advertising help to pay for Music?

Advertising will continue to fund a lot of ‘free’ content

Because Data is the new Oil
$1 Trillion

Hat tip to Shelly Palmer
Paid Content
I pay
You pay
They pay
Free Content

I pay, you pay, they pay *Inspired by Shelly Palmer
Subscriptions
Micro-Payments
Bundles
Applications Social Payments
Flat Rates Telcos & ISPs
Advertisers
Device Makers
Taxes
Patronage

Music 2.0: the pricing logic flips
Price Users
100
75
50
25
0
Was Will be

People pay when they see value, when
the price is right, and when it’s easy

Free + + + ++ +

This is the new model
Acceptance of new Reality
Permission / License
Fair Collection & Distribution
Develop New Generatives

The other 3 Billion
(O3B) are coming

Governments Telecoms
Authors & Creators Search Engines
Advertisers Publishers
Consumers
We were able to sell copies ‘on our own’, but
Device Makers
we can’t ‘Sell Access’ on our own!

Music 2.0: the inevitable Shift to Open
Open licenses
Open innovation
Open distribution
Open competition
Open partnerships
Open technologies
Open data standards

The 3 most important tools for success
Hat tip to Mike Mesnick / Techdirt

Magnetism = Money

Summary
License
Control ≠ Money

Thanks for your attention!
email me at gerd@mediafuturist.com
twitter.com/gleonhard
facebook: gleonhard