Digital DistributionCause and EffectWARNING :: Some of this presentation is MY OPINION...
History
History✤   The music industry used to need an “OFFICIAL DISTRIBUTION    CHANNEL” We used to call these folks, Labels.✤   W...
1998 - 2002            File Sharing              Napster was the first widely               known “peer-to-peer” file       ...
1998 - 2002                                 File Sharing                                  Napster was the first widely     ...
1998 - 2002                                 File Sharing                                  Napster was the first widely     ...
1998 - 2002                                 File Sharing                                  Napster was the first widely     ...
1998 - 2002                                 File Sharing                                  Napster was the first widely     ...
1998 - 2002                                 File Sharing                                  Napster was the first widely     ...
Age of the Lawsuits✤   The industry went for blood, labels suing technology companies, the    RIAA targeting fans. The goa...
2003          Apple Saves the Day       The A-La-Carte Download Store
2003          Apple Saves the Day       The A-La-Carte Download Store
2003          Apple Saves the Day       The A-La-Carte Download Store                      DRM (digital rights management)...
2003 - 2008         Mimic what works          A-La-Carte Download Stores✤                   Amazon✤                   eMus...
... This didn’t fix P2P✤   Peer to Peer sites continued to pop up.✤   BitTorrent became a phenomenon that helped to protec...
New Models Popped UpAdvertisement Based Services                          AOL Music | Yahoo! Music           The music is ...
New Models Popped UpAdvertisement Based Services                          AOL Music | Yahoo! Music           The music is ...
New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee)         For a monthly fee you can have all th...
New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee)         For a monthly fee you can have all th...
New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee)         For a monthly fee you can have all th...
New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee)         For a monthly fee you can have all th...
New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee)         For a monthly fee you can have all th...
I prefer subscription....✤   Social Sharing Component    ✤   Both INSIDE the App    ✤   And OUTSIDE the App (www.facebook....
So What “WINS”?✤   The Major Labels (all THREE of them) have equity in Spotify✤   There is an added element of “SHARING” t...
What Are Users Looking For?✤   In the decade since Napster’s launch, digital music consumers have    demonstrated their in...
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Digital distribution

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  • Digital distribution

    1. 1. Digital DistributionCause and EffectWARNING :: Some of this presentation is MY OPINION...
    2. 2. History
    3. 3. History✤ The music industry used to need an “OFFICIAL DISTRIBUTION CHANNEL” We used to call these folks, Labels.✤ With the advent of DIGITAL we no longer needed to get the music into a “brick and mortar” store. This led to DIGITAL distribution channels differences listed here...
    4. 4. 1998 - 2002 File Sharing Napster was the first widely known “peer-to-peer” file sharing network
    5. 5. 1998 - 2002 File Sharing Napster was the first widely known “peer-to-peer” file sharing network You can’t stop file sharing unless you propose a valuable alternative
    6. 6. 1998 - 2002 File Sharing Napster was the first widely known “peer-to-peer” file sharing network You can’t stop file sharing unless you propose a valuable alternative
    7. 7. 1998 - 2002 File Sharing Napster was the first widely known “peer-to-peer” file sharing network You can’t stop file sharing unless you propose a valuable alternative
    8. 8. 1998 - 2002 File Sharing Napster was the first widely known “peer-to-peer” file sharing network You can’t stop file sharing unless you propose a valuable alternative
    9. 9. 1998 - 2002 File Sharing Napster was the first widely known “peer-to-peer” file sharing network .....and on and on You can’t stop file sharing unless you propose a valuable alternative
    10. 10. Age of the Lawsuits✤ The industry went for blood, labels suing technology companies, the RIAA targeting fans. The goal was to put toothpaste back in the tube✤ 35,000 individuals were targeted by the RIAA for “illegal file sharing”✤ RIAA later modified to “Three Strikes You’re Out” policy✤ This strategy effectively made CONSUMERS the enemy and further strained the relationship with the fan
    11. 11. 2003 Apple Saves the Day The A-La-Carte Download Store
    12. 12. 2003 Apple Saves the Day The A-La-Carte Download Store
    13. 13. 2003 Apple Saves the Day The A-La-Carte Download Store DRM (digital rights management) Music as a loss leader for a device Margins Squeezed ... but sales are up again
    14. 14. 2003 - 2008 Mimic what works A-La-Carte Download Stores✤ Amazon✤ eMusic✤ Wal-Mart✤ 7Digital✤ TuneTribe
    15. 15. ... This didn’t fix P2P✤ Peer to Peer sites continued to pop up.✤ BitTorrent became a phenomenon that helped to protect the identity of the file sharer (multiple people sharing “bits” of songs)✤ The major labels / RIAA continued to file lawsuit after lawsuit to
    16. 16. New Models Popped UpAdvertisement Based Services AOL Music | Yahoo! Music The music is free, but you’re going to have to sit through ads (hey, this sounds like something we’ve got already)
    17. 17. New Models Popped UpAdvertisement Based Services AOL Music | Yahoo! Music The music is free, but you’re going to have to sit through ads (hey, this sounds like something we’ve got already)
    18. 18. New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee) For a monthly fee you can have all the music you like! Lets do that with DOWNLOADS!!!
    19. 19. New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee) For a monthly fee you can have all the music you like!
    20. 20. New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee) For a monthly fee you can have all the music you like!
    21. 21. New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee) For a monthly fee you can have all the music you like! What if we streamed the data over the Internet?
    22. 22. New Models Popped UpSubscription - All U Can Eat (free or for a monthly fee) For a monthly fee you can have all the music you like! What if we streamed the data over the Internet? .... or your cellular network
    23. 23. I prefer subscription....✤ Social Sharing Component ✤ Both INSIDE the App ✤ And OUTSIDE the App (www.facebook.com/music)✤ Apps✤ Mobile Streaming / Save Lists Locally
    24. 24. So What “WINS”?✤ The Major Labels (all THREE of them) have equity in Spotify✤ There is an added element of “SHARING” that traditional Digital Distribution does not.✤ It serves both MEDIA-FILES (who want the entire album) and CASUAL FANS (who want singles here and there)
    25. 25. What Are Users Looking For?✤ In the decade since Napster’s launch, digital music consumers have demonstrated their interest in five kinds of “free” selling points:✤ 1. Cost (zero or approaching zero),✤ 2. Portability (to any device),✤ 3. Mobility (wireless access to music),✤ 4. Choice (access to any song ever recorded) and✤ 5. Remixability (freedom to remix and mashup music)

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