Music Like Water: Gerd Leonhard
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The document discusses proposals for updating how music is licensed and monetized online. It argues that the current system is broken, with licensing costs becoming unsustainable. It proposes a new "social contract" with a public, open license that would legalize all uses of music and generate revenue through a variety of payment models, including micropayments, advertising, premium services, and new music applications. This would create new business opportunities and make it possible to earn more money from long-tail and niche music markets online.
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Music Like Water: Gerd Leonhard
- 1. Music Like Water: why, what, when and how? ‣ Futurist ‣ Strategist ‣ Author & Blogger www.mediafuturist.com twitter.com/gleonhard 1 1
- 2. What I do: ‣ Understand Clients such as IBM, Google, Nokia, DDB, Deutsche Telekom, ‣ Develop Ideas Sony BMG, Orange / France Telecom, BBC, ITV, RTL, The ‣ Catalyze Change European Commission, TribalDDB, Omnicom, Siemens, Telkom www.mediafuturist.com Indonesia, BOL... twitter.com/gleonhard 2 2
- 3. A big “Thank You” to everyone in my Network Most of what I ‘know’ you have given to me. re d h a n s he s w row e g dg wle no K 3 3
- 4. Listening, Reading & Watching = Copying 4 4
- 5. The value of Music is no longer (just) in the Copy Selling ‘units’ is yesterday’s concern - and so is the definition of a ‘Sale’ Trying to maintain total control of distribution is pointless 5 5
- 6. The value of Music is no longer (just) in the Copy Selling ‘units’ is yesterday’s concern - and so is the definition of a ‘Sale’ Trying to maintain total control of distribution is pointless 6 6
- 7. The World’s OS is Morphing 7 7
- 8. The new OS 8 8
- 9. Sharing? You ain’t seen nothing yet... 9 9
- 10. 10 10
- 11. The global switch from Closed to Open Media & Content Telecommunication Energy Business Education 11 11
- 12. 12 12
- 13. Yet, in Music we are approaching total Copyright Gridlock 13 13
- 14. This is a very bad idea 14 14
- 15. Because... 15 15
- 17. What does this remind you of? “France's Ministry of Culture estimates that 1,000 people a day could be cut off from the internet under the bill. After first being sent a warning email and then a formal letter by Hadopi, those accused of illegal file- sharing for a third time could be disconnected for up to a year and face a €300,000 fine and jail time. Even those found guilty of "negligence" for allowing others (such as their children) to pirate online material risk a month-long internet suspension and a €1,500 fine..." Source: The Guardian Sept 10 09 17 17
- 18. The Music Economy is Broken The System is certified dysfunctional Source: Techdirt 18 18
- 19. Let’s not confuse things 19 19
- 20. Why this can’t possibly work 200 Million users seems entirely realistic 20 songs per day = 4 Billion plays per day @ 1 Cent USD $40 Million PER DAY in license fees for the masters 14.6 BILLION USD per year in licensing costs Plus: costs for Public Performance in 50+ countries Plus: payments to composers Plus: technical costs = 50% of Google’s yearly $$ 20 20
- 21. And this is not a unique problem A market-driven solution is very unlikely 21 21
- 22. But it gets worse Private deals for public services? What choice did they have? How much control does this leave them? Is this ‘fair business practice’? 22 22
- 23. A market-driven solution is very unlikely "In parallel, the two companies will be working together to protect Universal Music's intellectual property and drive a material reduction in the unauthorised distribution of its repertoire across Virgin Media's network," said a statement. 23 23
- 24. “A new Social Contract” 24 24
- 25. What would this look like? First, legalize it - give permission All use - all pay * or otherwise generate $ value Many kinds of payments emerge Rights are public, open and standardized Licenses are available to every business Data-Mining and Market Access is $ value, too 25 25
- 26. Public License + Build-in Revenues + Proportional Distribution 26 26
- 27. Where will that Euro / Week come from? 27 27
- 28. With a new Internet Music License we don’t just sell something - we also buy 28 something! 28
- 29. 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 29 A new and very lucrative Ecosystem would emerge 29
- 30. We don’t pay to eat all the food... we pay for access 30 30
- 31. If we had a public music license, this would already be money in the bank! 31 31
- 32. 32 32
- 33. So why is there still so little revenue from Youtube, Myspace, Facebook...? • Advertisers are always 2-3 years behind • Lack of permission for legal content has resulted in much slower adoption • Lack of public license has deterred new investors • Mobile broadband and smart mobile devices are just now starting to take off 33 33
- 34. REVENUE Expect radical habit changes when the technology actually works 34 34
- 35. And this would become a huge business, too 35 35
- 36. With a public music license, the Longtail & Success in the Niches becomes very real, too Image: Flickr.com/WhiskersandWhispers 36 36
- 37. Summary: my proposal *since 1999 • Legalize it: a public, collective, open License for the use of Music online • Collaborative efforts to develop new, web-native revenue streams • A new social contract for Content 37 37
- 38. Thanks for listening! • email me at gerd@mediafuturist.com • twitter.com/gleonhard • facebook: gleonhard • more presentations at www.mediafuturist.com 38 38