The New Music Initiative is presenting a new music format called Smart Content that aims to positively change the music industry. Smart Content utilizes patented technology to make digital music files smarter by protecting artists' intellectual property, giving artists control over their works, and providing transparent data on how their content is consumed. This new format shifts power back to artists while creating new opportunities for monetization and innovation that could revolutionize the experience of listening to and discovering music.

1. New Music Initiative
The
Next
Genera,on
of
Music,
Content
and
Value

2. The New Music Initiative is a group of Artists, Technologists, and Creatives that are
passionate and driven to improve the experience of listening to making music.
This presentation is designed to inform musicians and their representatives of a
monumental change to music that will positively affect the the life of every musician and
the value of the music they make.
A new music format built on globally patented technology that simplifies how the world
engages with content, and how content producers manage the value and access of their
content.
If you read on you will discover that Content is DUMB, it cant protect, control or report on
the access of the content. You will also see the valuable music artists create is stored
inside this content.
“We recognized content is the cause of many issues facing the distribution, monetization
and enjoyment content. How did we fix it we built an engine that makes content SMART..”
- Finbar O’Hanlon
The New Music Initiative

4. Smart Content
Provides
a
change
where
groundbreaking
technology
brings
forward
a
new
music
format,
the
evolvement
from
the
CD
and
MP3
file.
A
format
that
for
the
first
,me
:
• Protects
ar,sts
intellectual
property
from
a
central
loca,on
• Gives
ar,sts
ul,mate
control
over
every
aspect
of
their
recorded
works
• Provides
ar,sts
with
transparent
and
accurate
data
as
to
every
play
of
their
content
on
virtually
any
network
or
device
• Provide
new
methods
of
mone,za,on
•
Provide
the
ability
to
re
release
en,re
catalogs
of
musical
works
• Provides
the
next
genera,on
of
listening
experiences
for
consumers.
Most
importantly
this
format
that
does
not
threaten
any
exis,ng
rela,onship
with
a
Label,
manager,
publisher,
just
a
format
that
makes
content
smart,
easy
to
deal
with
and
valuable
again.

5. Why is this important to Artists?
There
are
a
lot
of
people
making
a
lot
of
money
off
of
music
and
their
revenues
are
geLng
bigger
and
bigger.
Here
are
some
of
latest
news.
• Swedish
Music
Industry
revenue
2013
US$194.2
million
digital
revenue
from
8%
to
70%
source
IFPI
• Spo,fy
Paid
US$500
million
in
royal,es
in
2013
source
spo,fyar,sts.com
• Pirate
sites
ad
revenue
US$227
million
source
IFPI
• Apple
Beats
acquisi,on
US$3
billion(
Labels,
Universal,
Warner,
Sony
)
no
ar,sts
to
share
in
revenue
source
digital
music
news
• Music
Industry’s
Digital
revenue
US$5.9
Billion
source
IFPI
• VEVO
projected
revenue
2012
of
US$280
Million
which
was
up
from2011
revenue
US$
150
must
have
been
further
upped
by
its
current
figures
serving
5.5
Billion
views
per
month
of
music
video.
Up
33%
• YouTube
Ad
revenue
5.6
billion
in
2013
a
50%
increase
source
forbes
and
f.com
There
are
companies
that
make
money
from
selling
data
based
on
how
people
interact
with
digital
content.
Currently
this
market
is
approx
US$
6.6
billion
last
year.
How
much
GROWTH
in
money
did
you
the
ar,st
make
last
year?
.

6. Smart vs Dumb
People
are
“Smart”
They
dynamically
establish
what
they
want
and
how
they
want
it.
People
are
flexible
in
their
consump,on
palerns
and
how
they
choose
to
engage
with
or
consume
content
can
drama,cally
change
the
value
of
that
media.
Technology
is
”Smart”
Technology
allows
companies
to
evaluate
and
adapt
to
meet
the
shifing
preferences
of
people.
It
can
be
used
to
understand
how
content
is
consumed.
Companies
that
use
technology
for
this
purpose
are
typically
market-­‐leaders
in
their
sectors,
worth
billions
of
dollars.
Content
is
“Dumb”
Content
is
designed
to
just
play.
Content
does
not
protect
an
ar,sts
recorded
works
for
being
illegally
used,
does
not
accurately
report
on
its
usage
and
provides
no
control.
Content
is
inflexible
from
being
mone,zed
in
any
manner,
it
takes
up
space
and
is
not
portable
across
devices.
This
is
NOT
how
it
should
be…

7. If Content was Smart
If
Content
was
“Smart”
It
would
be
able
to
protect
and
establish
an
ar,sts
value
(recorded
or
produced
works).
It
would
provide
control
in
such
a
manner
that
any
unauthorized
usage
could
be
immediately
stopped
from
occurring.
It
would
also
provide
new
capabili,es
that
fundamentally
shifs
the
control
of
content
back
to
the
ar,st
or
representa,ve
whilst
providing
new
levels
of
innova,on
that
revolu,onize
content
discovery,
filtering,
and
improve
the
listening
experience.
If
content
was
smart
it
could
adapt
to
suit
the
people
that
experienced
it.
When
content
is
relevant
to
the
listener
and
CONTROLLED
BY
THE
ARTIST
a
new
horizon
of
value
is
created.

8. Smart Content
Is
now
a
reality.
Welcome
a
New Music Industry

9. How do you make content
Smart?
You
first
have
to
understand
what
digital
content
is.
To
do
that
you
have
to
understand
the
structure
of
a
digital
music
and
video
file,
then…
You
build
a
new
format
-­‐
Smart
Content.

10. Digital Media (Music and Video) files just contain data.
Data is created in music terms when an analog sound
is being converted to a digital language made up of
ones and zeros.
For a digital file to be played back as music the data
has to be turned back into an analog source.
An example of this is when you play your guitar into
your Protools software through an interface.
The Guitar creates sound pressure (analog) pickups
create the electrical current (analog) goes to a
soundcard to be converted to digital (numbers)
The soundcard translates the electric current to ones
and zero’s (data) and the quality of the soundcard is
how good it is at translating the incoming sound to
ones and zeros (data).
Simply put, people speak languages while computers
speak data.
Inside Digital Music files (Mp4) there are two areas
that you can’t see…
One area is where the music is stored (Artist Data)
and the other area controls that playback of that music
(Format Data).
The diagrams on the right show the structure of
content. The Format Data is in Red and Green and the
Blue area shows the actual valuable music.
Format
Data
Ar,st
Data
Making Content Smart
The inside of Digital Music

11. Analog to Digital
When you record your works it is typical for your works to be turned into a digital recording. A digital recording is produced by
converting the physical properties of the original sound into a sequence of numbers, numbers which can then be stored and
read back for reproduction.

12. Making Content Smart
Content does not communicate it simply plays,
It’s fundamentally DUMB. In order to make
content SMART, you need it first to be able to
communicate with any party or any platform.
To control content you need to remove the
valuable artists IP from the file and have it
delivered once paid for.
Why?
Digital content has made it easy to illegally
utilize and share the valuable IP because the
valuable component that represents the artists
works (IP) is included in the file. This flawed
framework, coupled with no communication from
the file – creates a status quo where there is no
accurate way to understand the usage of the
content.
Smart content files are transparent and provide
value to everyone who utilizes its content. The
IP is in a format that is unplayable on any device
and gets delivered at play request where it is
reassembled back to music at the device.
When the IP is removed from the content,
songs take up no storage, they play across any
devices or standards and take up no real space.
For the artist the IP comes from a single
controlled location.

13. The New Digital Format
Reinventing the format by which content is delivered marks a sea change in digital
media. For the first time, content itself will be as smart as the platforms that deliver it. By
providing the power of Big Data to audio and video, the industry can start to control the
value derived from content and establish its own set of rules around how content is
monetized.
•The Consumer wants to control the engagement and availability of music and content.
They want content to be relevant to them and to be able to easily discover new and
exciting media.
• The Artist or Rights Manager wants to control their intellectual property or recorded
works in order to extract and enforce that value earned is returned to the artist or rights
holder. They also want to be able to find and communicate with their fan base and be
able to be found by people who engage with their content.
•The Platform (YouTube, Spotify, iTunes) wants control of the users on their platform and
the services that they provide, this includes the financial inflows to the business.
• The Network wants utilization of data on their network and wants to control the financial
accounts and billing of their subscribers.

14. The
MX4
model
is
built
from
2
successful
workflows.
Data
and
Virtualiza,on.
Amazon,
IBM,
Oracle,
Google
-­‐-­‐
in
fact
the
enterprise
world
-­‐-­‐
communicates
this
way.
Linius
is
the
first
group
in
the
world
that
has
successfully
managed
to
apply
this
workflow
in
order
to
produce
on
the
fly
content
personaliza,on.
Linius Process “Smart Content”

15. Linius Process “Smart Content”

16. Music Industry
How
do
you
fix
an
industry
that
can’t
be
fixed?
You
don’t…you
reinvent
it.

17. Music Content Today
How
do
we
bring
value
back
to
music?
You
evolve
the
Music
experience
mx

18. Music Content Today
Today,
people
consume
more
content
than
ever
and
ar,sts
are
making
less
money
than
ever.
Control
of
an
ar,sts
revenue
and
therefore
the
value
of
the
recorded
music
works
is
in
the
hands
of
the
person
who
controls
the
data
and
the
consumer
who
dictates
how
they
want
to
use
the
content.
If
the
data
and
end
usage
are
the
key
control
points,
then
the
content
itself
should
report,
not
the
intermediaries.
Smart
Content
changes
the
landscape
and
control.
In
todays
technology
driven
world,
every
single
,me
the
work
product
of
ar,sts
is
played
on
any
device,
the
ar,st
should
know
about
it,
get
paid
and
be
able
to
control
how
his
or
her
works
are
u,lized.

19. Music Content Today
Todays
technology
can
easily
deliver
this
informa,on,
cellphone
companies
can
report
every
transac,on
down
to
the
second,
where
you
were
located
anywhere
in
the
world
and
where
the
transac,on
originated
from.
How
come
this
doesn’t
happen?
It’s
not
because
of
bad
data!
It
is
because
fundamentally,
the
content
is
“Dumb”.
Content
has
no
method
of
repor,ng
itself.
Even
the
best
data
system
cannot
measure
every
transac,on
across
every
usage
model.
The
method
of
repor,ng
is
lef
to
organiza,ons
who
u,lize
the
content.
These
organiza,ons
ofen
have
to
pay
based
on
the
size
of
the
usage
data.

20. The “New Sound”
The
New
Consumer
Format
Smart
content
provides
the
consumer
with
the
next
advancements
in
Audio
Formats.
With
all
the
advancements
in
the
world
today,
technology
that
wins
is
the
technology
that
makes
our
lives
beler.
Why
is
it
that
with
the
advancements
in
technology,
that
the
advancements
in
music
formats
have
go7en
worse.
The
sound
has
go7en
worse.
Lets
look
at
advancements
in
video
in
comparison
VHS
-­‐>
DVD
-­‐>Blu
Ray
all
offered
new
features
for
a
consumer
and
beler
quality
Visuals
and
sound
with
each
evolvement
in
the
format
From
special
features
to
DTS
sound.
With
Video
the
experience
is
greater
as
technology
evolved
Does
this
make
sense
to
anyone?
“Dumb
content”
cannot
protect,
audit,
or
control
an
ar,sts
intellectual
property
nestled
within
the
Media
format
and
to
top
it
of
the
sound
quality
has
golen
worse.

21. The “New Sound”
OK so what is the New sound?
New Sound is a term to describe a new listening experience.
From streaming 24 bit audio, which opens a new level of dynamic headroom, to content giving access across devices and
networks, to content that can provide feedback so content that the listener will enjoy can find the listener ( discovery) to
listeners wanting to EQ or change stems of a mix smart content provides a host of new features that can bring about the
change in the listening experience.
Stems do not remove control of how the music is intended to be heard it merely provides the ability for stemmed audio to be
treated individually in a manner that the artist or label is happy with . It is controlled from the artist.
Either as a special feature or for listening over an entire album the ability for a listener to hear the artists works in a way never
before heard is a significant reason to usher in the new format.
Whether through a series of Presets, presets which can be shared, provided by band members or even through an interface
to be designed by equipment manufacturers tis ability provides a wealth of value for artists, consumers and manufacturers of
consumer audio equipment.
Think about this.
As an artist, if you choose the best engineer in the world at the best studio in the world,
Why do people then apply their own EQ. or listen to this production in a poor quality mp3 format?
Why do people buy better speakers, better headphones? Is it for better sound?
Better sound for who? The listener?
People like to consume, they like features. Does every Blu Ray Watcher watch all of the special features, Does everyone use
all of their features of their car or device. No, but still if asked people will assign value to these features whether they use them
or not.

22. Too Much Choice
For a long period of time listening to music was simple: you had your LPs, Cassettes or CDs.
No matter how many of them you had in your collection, it was easy to understand the music
you had and the music you didn’t have.
Then came the Internet, and all of a sudden there were too many choices. Between the
listeners own collection and the music available on different streaming services, there was now
too many decisions to make in finding and buying music. Confusion reigned as to why the
music I already own wont play on these new internet connected devices. A picture further
muddied by why the music I bought or want to buy is free on YouTube or on streaming services.
The Internet started an addictive cycle of craving music. The format of digital music allowed the
reproduction of the music without any real barrier, causing untold issues to the music industry
and those that create in the face of massive piracy. The platforms met this craving by offering
music and video content for free.
They did this using a reflective business model. The removal of the value of content was the
new value in building intelligence. This intelligence is traded at a much higher value than
content. The impact of this action was to start to educate consumers that music was now free
or had little value.
With this model in mind, it’s easier to understand that every time a song is played it has value.
The trick is to work out where the value is being attributed and how that value can be
understood, tracked and billed and what the value is to the intellectual property owner.

23. There are a lot of people making
money off of the music artists
create, unfortunately the artist is
most likely not one of them.

24. The Reflective Business Model
In understanding where the transactional value is in music and content lets highlight a transactional model we call the Reflective business
model. We call it reflective because much like a two way mirror its viewing capabilities are not obvious to the uninitiated.
The
data
driven
from
the
consump,on
of
content
is
a
major
financial
driver
for
many
of
the
worlds
largest
organiza,ons
because
this
consump,on
provides
intelligence.
Intelligence
that
helps
drive
adver,sing,
helps
manufacturers
in
the
building
of
new
products,
helps
forecas,ng
sales
based
on
consumer
habits.
So
how
much
money
do
music
arBsts
and
the
industry
gain
from
the
intelligence
gathered
around
the
consumpBon
of
this
media?
A
share
in
the
value
of
the
adverBsing
systems
that
provide
relevance
and
the
data
that
is
traded
based
on
the
content
that
arBsts
provide.
How
is
the
split
determined?
Are
you
happy
with
your
share
of
this
revenue?
When
firms
like
eMarketer
expects
YouTube's
ad
revenue
to
total
$5.6
billion
this
year,
a
51%
increase
from
last
year.
YouTube
a
site
that
provides
content
for
free
to
consumers
and
sites
like
Twiler
founded
just
eight
years
ago,
is
worth
more
than
$18bn
with
revenue
for
the
first
quarter
of
2014
totaled
$250
million,
an
increase
of
119%
compared
to
$114
million
in
the
same
period
last
year,
doesn’t
it
make
you
ask
how
do
these
plasorms
make
money
Let’s
look
at
how
twiler
makes
money
• 'NaBve'
markeBng
• Almost
all
of
Twiler's
revenue
-­‐
about
85%
of
it
-­‐
comes
from
adver,sing
on
its
site.
• There
are
three
main
ways
for
a
company
or
an
individual
to
adver,se
on
Twiler:
by
promo,ng
a
tweet
that
will
appear
in
people's
,melines,
promo,ng
a
whole
account,
or
promo,ng
a
trend.
• Twiler
tends
to
charge
its
adver,sers
according
to
the
amount
of
interac,on
their
content
generates.
• Anything
that
disrupts
the
user
experience
might
reduce
engagement
from
users,
which
in
turn
can
put
off
adver,sers,
Ms.
O'Reilly
says.
•
• Using
the
'firehose'
• Data
licensing
is
Twiler's
second
major
revenue
stream.
• The
micro-­‐blogger
sells
something
known
as
the
"firehose",
its
public
data,
which
ofen
adds
up
to
about
500
million
tweets
each
day.
• Companies
can
dive
deep
into
the
data
to
analyze
consumer
trends
and
sell
their
insight
on
to
other
brands
and
companies.
• With
sophis,cated
analysis
companies
can
learn
detailed
and
specific
informa,on
about
their
users
that,
because
of
the
volume
of
data,
an
ordinary
user
or
company
would
not
be
able
to
get.

25. Invisible Business Model
• YouTube makes money because they attract around one billion unique visitors every month to view content that artists and other content creators
create ( FOR FREE ). Because of this influx of viewers advertisers are willing to pay to get in front of that large, captive audience.
• YouTube gives advertisers what they want by letting them focus in on a variety of specific demographic markers. For example, advertisers can
choose to market to people based on their gender, age, location, and interests. They’ve also smartly developed their website to support and show
ads across multiple platforms, including smartphones, tablets, and computers.
• How much money does YouTube make off its advertising? It’s a hard question to answer. Owned by Google since 2006, YouTube’s financial
numbers aren’t publically published, at least as a standalone. But
estimates for YouTube’s 2012 gross revenue were at $3.6 billion. And considering that Google made $14 billion in revenue in the second quarter
of 2013 alone, YouTube and its ad sales are clearly just one more piece in the very large, very successful Google machine.
What’s wrong with this picture?
Where are you?.
Under Creators it states You Tubers, Brands
Agencies, Networks.
Is that you?
If an artists works is valuable in the harvesting of this data what would happen to the Value of companies such as Google (YouTube), Spotify
and others if “Officially Licensed Music “ came into play. An initiative where every avenue of exploited value attributed to an artists works is
evaluated and an artist or label is rewarded? What would happen if an artist removed content from sites that make them no money and
devalue their works, then sends cease and desist letters to companies stopping them from finding and serving content for free, content that
is monetized elsewhere, then to top it off places advertisements in major publications around the world stating that these platforms are now
not the place to find everything.
What do you think this would do to these companies often huge multi billion dollar market valuations?

27. Big Data
Big
Data
is
a
word
used
to
technologies
designed
to
extract
value
from
very
large
volumes
of
a
wide
variety
of
data.
Companies
like
Facebook,
twiler,
and
Google
specialize
in
the
harves,ng
of
this
informa,on
to
build
more
relevant
services
to
its
consumers
and
to
provision
this
data
to
a
hungry
world
all
looking
to
understand
palerns
that
demonstrate
how
these
people
will
consume
informa,on,
and
how
products
can
be
improved.
On
the
earlier
slides
we
talked
about
how
some
of
the
worlds
leading
companies
leverage
media
content
as
a
tool
to
acquire
data,
data
that
can
be
used
to
generate
revenue
or
build
products
and
services
that
enable
relevance
in
adver,sing
back
on
their
plasorms.
• In
some
case
there
are
some
real
challenges
in
alaining
this
data.
Ofen
data
is
in
different
silos,
on
different
networks
and
because
people
switch
networks
and
plasorms
when
the
are
consuming
media
a
plasorm
is
limited
by
the
consumers
life
of
the
plasorm.
• Smart
content
allows
for
Big
Data
to
be
embedded
inside
every
piece
of
content,
With
the
new
format
a
new
file
wrapper
is
constructed
every
,me
someone
hits
play.
• This
would
mean
that
digital
content
can
be
a
Big
Data
Agent
and
this
Big
Data
agent
could
carry
and
deliver
informa,on
from
the
media
itself.
A
centralized
set
of
data
every
,me
the
content
is
used
and
the
data
could
be
as
rich
as
available
from
the
device
where
the
content
is
played.
• Based
on
the
requirements,
a
live
stream
of
data
from
a
consumer
in
a
central
loca,on
would
provide
incredible
value
to
this
community,
a
community
you
can
see
has
immense
value
built
off
data.
The
market
for
tradi,onal
business
analy,cs
sofware
is
large
and
well
established,
IDC
es,mates
an
aggregate
spending
of
$35.1
billion
in
2012
in
this
worldwide
market
sector.
The
internet,
of
course,
is
comprised
of
data
—
all
kinds
of
data.
However,
the
vast
majority
of
new
data
being
generated
is
unstructured.
This
means
that
more
ofen
than
not,
we
know
lille
about
the
data,

28. Centralized Big Data Agent
Smart
Content
brings
an
amazing
opportunity
to
the
music
industry
to
control
and
harvest
Big
data
from
within
smart
content.
An
opportunity
to
hold
the
keys
to
the
value
of
content
when
it
comes
to
business
intelligence.
To
be
able
to
understand
and
parse
Data
from
within
media
at
this
level
is
something
only
possible
with
Smart
Content.
According
to
Gartner,
Inc.,
organiza,ons
are
expected
to
spend
$81.0
billion
on
business
analy,cs
and
related
services
in
2014.
If
the
music
industry
and
the
ar,sts
can
capture
and
provision
big
data
from
within
smart
content
then
the
en,re
industry
has
a
new
business
model.
Intelligence.
Smart content has to be driven as an
industry initiative.
The platforms that currently have control
wont promote smart content, as they are
focused on tools that give them control
and keep people at their platform

29. Data and Transaction flows

30. New Music Initiative

31. For more information
Contact
Finbar O’Hanlon 917 828 1962 finbar@linius.com
Dave Weiderman 818 288 6588 dweiderman@aol.com
Patent #
12/670430 United States
2008288676 Australia
159164 Singapore
200880110364.8 China
08782938.8 Europe