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Music And Radio On The Internet Whats Next


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Music and radio on the Internet - What's next

Presentation by Nico Perez (Mixcloud cofounder)

Published in: Technology
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Music And Radio On The Internet Whats Next

  1. 1. By Nico Perez (Mixcloud co-founder) What’s next? Music and radio on the internet:
  2. 2. Text <ul><li>1. Industry context (brief history lesson) </li></ul><ul><li>2. A bit about Mixcloud </li></ul><ul><li>3. The future - trends and predictions </li></ul><ul><li>4. Challenges </li></ul>Contents
  3. 3. 1. HISTORY
  4. 4. <ul><li>Brief History of the Music Industry </li></ul><ul><li>Beginnings in the 1800s </li></ul><ul><li>Dominated by sheet music publishers in late 19th + early 20th century </li></ul><ul><li>2nd half of 20th century records become largest income source </li></ul><ul><li>Today 4 major players: Universal, Sony BMG, Warner, EMI </li></ul>CD LP Online
  5. 5. <ul><li>Music Industry today </li></ul><ul><li>Worldwide recorded music market size around $30 to $40 billion </li></ul><ul><li>Total worldwide revenues for physical+digital dropped over 25% in 10yr </li></ul><ul><li>In USA alone dropped from $15 billion in 1999 to $10 billion in 2008 </li></ul>
  6. 6. <ul><li>A brief History of Radio </li></ul><ul><li>Since early 1900s </li></ul><ul><li>Developed by Maxwell, Edison, Marconi, Tesla and more </li></ul><ul><li>Famous “Pirate” stations include: Radio Luxembourg, Radio Caroline and XERF in Mexico </li></ul>Tesla Marconi
  7. 7. <ul><li>Radio Industry today </li></ul><ul><li>Radio market size around $35 billion ($2 billion is online) </li></ul><ul><li>Big players: Clear Channel & CBS in USA, Global & Bauer in Europe </li></ul><ul><li>Over 90% of US radio advertising spend is local </li></ul>Annual growth rate = 11% 80m monthly listeners to Internet radio in US in 2008 Global radio ad spend in 2007 = $37 billion Online revenue forecast
  8. 8. <ul><li>A (very) brief History of the Internet </li></ul><ul><li>First developments at CERN by Tim Berners-Lee </li></ul><ul><li>Industry Started in 1990s </li></ul><ul><li>Bubble bursting/crash of 2000/2001 </li></ul>
  9. 9. <ul><li>Internet Industry today </li></ul><ul><li>Ten years since Dot com bubble burst </li></ul><ul><li>Moore’s law applies to hardware/bandwidth prices </li></ul><ul><li>Worldwide Internet advertising today roughly $54 billion </li></ul>
  10. 10. 2. TODAY
  11. 11. Internet music and radio today <ul><li>Mixcloud = recommendation for radio shows, Podcasts and DJ mixes </li></ul>Songs Radio Search Discovery
  12. 12. <ul><li>A bit more about Mixcloud </li></ul><ul><li>Vision: A Youtube for Radio </li></ul><ul><li>Cloudcasts = free on-demand radio shows, Podcasts and DJ mix </li></ul><ul><li>Mission: connect great Cloudcasts to listeners </li></ul>
  13. 13. <ul><li>Why we love radio </li></ul><ul><li>Discovering through experts and enthusiasts </li></ul><ul><li>A great form of communication (multitask friendly) </li></ul><ul><li>We were radio presenters at University of Cambridge </li></ul>
  14. 14. <ul><li>We also love mixtapes </li></ul><ul><li>Four of the six core team are DJs </li></ul><ul><li>We grew up listening to mixtapes </li></ul><ul><li>More than the sum of their parts </li></ul>
  15. 15. <ul><li>Mixcloud today </li></ul><ul><li>Launched in September 2009 </li></ul><ul><li>Working with household names like BBC, NME, Diesel Radio </li></ul><ul><li>Lots of music, now increasing number of talk shows </li></ul>Laid back radio Judge Jules DiS
  16. 16. 1. FUTURE
  17. 17. <ul><li>3 Big future trends online </li></ul><ul><li>Case studies and learnings for internet music and radio </li></ul>SOCIAL +DEMOCRATIC +PERSONAL BETTER EXPERIENCES
  18. 18. <ul><li>Great “ social ” website 1 </li></ul><ul><li> </li></ul><ul><li>Social news </li></ul><ul><li>Challenges: how to prevent groups gaming the system </li></ul>
  19. 19. <ul><li>Great “ social ” website 2 </li></ul><ul><li> </li></ul><ul><li>Social gaming, leveraging the social graph </li></ul><ul><li>Challenges: future big brand competitors </li></ul>
  20. 20. <ul><li>More Social internet music & radio </li></ul><ul><li>Destination -> Distribution </li></ul><ul><li>Sharing what you love (via Facebook, Twitter, blogs, etc) </li></ul><ul><li>Know what your friends are listening to </li></ul>
  21. 21. <ul><li>Great “ democratic ” website 1 </li></ul><ul><li> </li></ul><ul><li>Greatest cultural development in last 100 years </li></ul><ul><li>Every minute, 20 hours of video are uploaded to YouTube </li></ul><ul><li>Challenges: copyright, quality, moderation </li></ul>
  22. 22. <ul><li>Great “ democratic ” website 2 </li></ul><ul><li> </li></ul><ul><li>DIY tool and personal URL </li></ul><ul><li>10 million bands? </li></ul><ul><li>Challenges: navigation, user experience </li></ul>
  23. 23. <ul><li>Democratic internet music & radio </li></ul><ul><li>Anyone can upload songs/shows - old hierarchies are flattened </li></ul><ul><li>DIY = means of production are (nearly) universally available </li></ul><ul><li>Content volume growing exponentially (Search -> Recommendation) </li></ul>
  24. 24. <ul><li>Great “ personal ” website 1 </li></ul><ul><li> </li></ul><ul><li>Personalised shopping experience. Pioneers of intelligent recommendations </li></ul><ul><li>Challenges: shopping history </li></ul>
  25. 25. <ul><li>Great “ personal ” website 2 </li></ul><ul><li> </li></ul><ul><li>Blog reading + writing in the same space </li></ul><ul><li>User centre of design </li></ul><ul><li>Challenges: changing existing blogging behaviour </li></ul>
  26. 26. <ul><li>More Personal online music & radio </li></ul><ul><li>User centric design </li></ul><ul><li>Personalised listening experience for everyone </li></ul><ul><li>Analytics let you track what users listen to and recommend </li></ul>YOU (everything)
  27. 27. $ 4. CHALLENGES
  28. 28. <ul><li>Business Model Challenges </li></ul><ul><li>Traditional radio ad spend moving online (Google, Spotify, TargetSpot) </li></ul><ul><li>Display vs Audio vs Sponsorship </li></ul><ul><li>Transactional (Affiliates, Premium Accounts) </li></ul><ul><li>Experimental (Talent services, Micropayments, Subscription) </li></ul>
  29. 29. <ul><li>Future Access Questions </li></ul><ul><li>New devices, radio over IP wherever there is wifi </li></ul><ul><li>What will “Radio” sound/look like? </li></ul>
  30. 30. <ul><li>Content challenges </li></ul><ul><li>What type of content are consumers willing to pay for and how? </li></ul><ul><li>How do brands fit into the picture? </li></ul><ul><li>Still early days </li></ul>
  31. 31. Please get in touch We’re keen to hear your thoughts Email: [email_address] Twitter: @nicoperez / @mixcloud
  32. 32. Thank you! Flickr CC credits: