The document examines the crisis facing the entertainment industry due to changes in online media and piracy. It discusses how traditional business models for movies and music are failing as DVD/CD sales plummet. Various digital business models are presented, such as advertising, subscriptions, and direct sales to consumers. Case studies of attempts at new models like DIVX, iTunes, Netflix, and Pandora are provided. The document concludes that while the movie and music industries face crises, they require different solutions given that music piracy has caused more damage so far.
The document discusses how the music, film, television, publishing, and video game industries have been impacted by the rise of the internet and digital technologies. It describes how these industries have transitioned from physical to digital distribution and consumption of their media. It also discusses some of the challenges this has posed, such as piracy, but also the opportunities it provides for more widespread access and new business models like streaming. Overall, the internet and digital technologies have significantly changed how these industries operate and how audiences engage with media.
Within the roof of the luxury developing at the edge of Central Park, 585 ft previously mentioned the concrete, an attorney named David Goodfriend has attached a modest 4-foot antenna That may be a risk to the complete Tv set-industrial intricate.
The device is there to soak up TV indicators coursing from the air — content material from NBC, ABC, Fox, PBS and CBS, which include megahits like “This can be Us” which Sunday’s broadcast of Tremendous Bowl LIII. As soon as plucked with the ether, the content is piped by way of the web and assembled into an app referred to as Locast. It’s a streaming provider, and it would make all this community programming available to subscribers in ways in which tend to be more easy than counting on a house antenna: It’s viewable on Nearly any gadget, at any time, in pristine high-quality that doesn’t cut in and out. It’s also completely totally free.
This monthly newsletter discusses emerging media technologies and their impact on education. The April 2009 issue features stories on YouTube allowing overlay ads on videos to benefit charities, the expansion of generic top-level domains, and a reality TV show in Belgium using flash mobs for promotion. It also previews an envisioned interactive, multimedia textbook platform and introduces the newsletter's producers.
Queen Elizabeth College music industry presentationRob Jewitt
American businesses lose $250 billion annually due to intellectual property theft which has cost over 750,000 jobs. The music industry in particular loses billions each year - an estimated $58 billion is lost to the US economy alone including 373,000 lost jobs and $3 billion in lost tax revenue. While online piracy accounts for some losses, the music industry's traditional business model was already in trouble prior to the rise of piracy due to broader cultural shifts and its inability to adapt. The industry responded to piracy with prosecution efforts and digital rights management technologies, though these have proven largely ineffective at curbing piracy while antagonizing many users.
Context: The Future of Music (Presentation at Euroslagt Groningen NL Jan 2010)Gerd Leonhard
My presentation at the annual Noorderslagt / Euroslagt event in Groningen, NL, on music futures, copyright versus usage right, the public digital music license, and much more see http://gerd.fm/gNM2hG
Digital music adoption has increased dramatically in recent years. Naxos has embraced new digital technologies and distribution methods, leading to a nearly 10-fold increase in digital revenue over 3 years. Licensing of Naxos' classical music content for educational and other uses has also grown significantly, now accounting for 60% of licensing income. While digital pricing models continue to evolve, Naxos is treating digital service providers and educators as retailers to expand access to its classical music catalog in new ways online.
The document discusses how the music, film, television, publishing, and video game industries have been impacted by the rise of the internet and digital technologies. It describes how these industries have transitioned from physical to digital distribution and consumption of their media. It also discusses some of the challenges this has posed, such as piracy, but also the opportunities it provides for more widespread access and new business models like streaming. Overall, the internet and digital technologies have significantly changed how these industries operate and how audiences engage with media.
Within the roof of the luxury developing at the edge of Central Park, 585 ft previously mentioned the concrete, an attorney named David Goodfriend has attached a modest 4-foot antenna That may be a risk to the complete Tv set-industrial intricate.
The device is there to soak up TV indicators coursing from the air — content material from NBC, ABC, Fox, PBS and CBS, which include megahits like “This can be Us” which Sunday’s broadcast of Tremendous Bowl LIII. As soon as plucked with the ether, the content is piped by way of the web and assembled into an app referred to as Locast. It’s a streaming provider, and it would make all this community programming available to subscribers in ways in which tend to be more easy than counting on a house antenna: It’s viewable on Nearly any gadget, at any time, in pristine high-quality that doesn’t cut in and out. It’s also completely totally free.
This monthly newsletter discusses emerging media technologies and their impact on education. The April 2009 issue features stories on YouTube allowing overlay ads on videos to benefit charities, the expansion of generic top-level domains, and a reality TV show in Belgium using flash mobs for promotion. It also previews an envisioned interactive, multimedia textbook platform and introduces the newsletter's producers.
Queen Elizabeth College music industry presentationRob Jewitt
American businesses lose $250 billion annually due to intellectual property theft which has cost over 750,000 jobs. The music industry in particular loses billions each year - an estimated $58 billion is lost to the US economy alone including 373,000 lost jobs and $3 billion in lost tax revenue. While online piracy accounts for some losses, the music industry's traditional business model was already in trouble prior to the rise of piracy due to broader cultural shifts and its inability to adapt. The industry responded to piracy with prosecution efforts and digital rights management technologies, though these have proven largely ineffective at curbing piracy while antagonizing many users.
Context: The Future of Music (Presentation at Euroslagt Groningen NL Jan 2010)Gerd Leonhard
My presentation at the annual Noorderslagt / Euroslagt event in Groningen, NL, on music futures, copyright versus usage right, the public digital music license, and much more see http://gerd.fm/gNM2hG
Digital music adoption has increased dramatically in recent years. Naxos has embraced new digital technologies and distribution methods, leading to a nearly 10-fold increase in digital revenue over 3 years. Licensing of Naxos' classical music content for educational and other uses has also grown significantly, now accounting for 60% of licensing income. While digital pricing models continue to evolve, Naxos is treating digital service providers and educators as retailers to expand access to its classical music catalog in new ways online.
Monetizing Music in a connected society (Berklee alumni event in Nashville)Gerd Leonhard
The complete 90-page PDF of my presentatio on how to monetize music online (ie. make money with it:)... covering a slew of related topics such as marketing, promotion, social media, facebook commerce, branding, copyright, licensing etc... video to follow soon. enjoy
Illegal downloading and copyright 2012 6 fLiz Davies
The document discusses the problems and opportunities that new media technology poses for record labels, artists, and consumers.
For record labels, it poses the risk of losing their business as people illegally download music. For artists, they may not make money from their work if it is illegally downloaded. For consumers, illegally downloading music is against the law and they could lose internet access.
However, new media also provides opportunities. It allows unknown artists to gain exposure and a larger fanbase through platforms like YouTube. Artists can make money through concerts rather than relying on royalties. And consumers can discover new music for free and use that to support artists at concerts.
This presentation was provided by Justyn Baker of Naxos of America, Inc., during the NISO event "Digital Resources: Working with Formats Beyond Serials," held March 4 - 6, 2008.
1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files.
2) The recording industry saw this as a threat and violation of copyright, suing Napster. Though decentralized networks like Gnutella emerged after Napster's shutdown.
3) The document analyzes Hollywood's response to P2P and digital distribution, arguing the movie studios prefer centralized, controlled services that maintain existing business models, despite economic advantages of decentralized models.
The document discusses the history and future of the music industry. It covers the evolution of music from pre-historic instruments to modern digital formats like MP3s and the impact of technology like the CD, MP3 players, and internet downloading. The document also examines the debate around digital music piracy and arguments from both sides of the issue. It suggests the music industry needs to embrace new technology to adapt to changes in how consumers obtain and listen to music.
Netflix was founded in 1997 by Reed Hastings and Marc Randolph. It initially started as a DVD rental service called Kibble and was launched in 1998. In 2007, Netflix introduced streaming services and is now available in over 190 countries with over 148 million paid subscribers. Netflix competes in the online streaming market against competitors like HBO, Amazon Prime, Disney+, and Hulu. It has experienced exponential growth and relies on original content and a global customer base as strengths, but also faces challenges like increasing costs and competitive pressures.
Napster and Mp3: Redefining the music industryPuneet Arora
The music industry has undergone significant changes due to new digital technologies and file sharing. The rise of mp3 formats and sites like Napster made it easy to share music files online, threatening the business models of record labels and music companies. While sites like Napster grew rapidly in users, they also faced legal challenges for facilitating copyright infringement. Looking ahead, the industry must address challenges of piracy while developing new digital business models to adapt to trends of online music consumption.
The document discusses several topics related to changes in the film industry including cross media convergence, technological convergence, piracy, film exhibition, budgets and figures, hardware production/distribution/exhibition, distribution examples for Avengers and Submarine, digital technology's role in production/distribution/exhibition, and media ownership. Key points are that cross media convergence increases potential audiences and profits by making content available on multiple platforms, and technological convergence allows wider access to content through combination of technologies in one device.
Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organisational structure created in the 20th century cannot survive when new digital solution are being offered. The hierarchical structure of these established companies assumes high coordination cost due to human activity. But when the coordination cost drops
The organisational structure that companies in the 20th century established was based on the fact that employees needed to do all the work. The coordination cost was high due to the effort and cost of employees, housing etc. Now we have software that can do this for use and the coordination cost drops to close-to-zero. Another thing is that things become free. Consider Flickr. Anybody can sign up and use the service for free. Only a fraction of the users get pro account and pay. How can Flickr make money on that? It turns out that services like this can.
Many businesses make money by giving things away. How can that possibly work? The music business has suffered severely with digital distribution of content. Should musicians put all there songs on YouTube? What is the future business model for music?
1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files.
2) The recording industry saw this as a threat and sued Napster for copyright infringement, eventually shutting it down. However, new decentralized P2P networks like Gnutella emerged.
3) While P2P networks provide benefits to consumers and could be profitable if legal, the major Hollywood studios have resisted embracing digital distribution and instead promote centralized, licensed services to maintain existing business models.
1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files.
2) The recording industry saw this as a threat and sued Napster for copyright infringement, eventually shutting it down. However, new decentralized P2P networks like Gnutella emerged.
3) While P2P networks provide benefits to consumers and could be profitable if legal, Hollywood studios have resisted embracing digital distribution and instead promote centralized, licensed services to maintain existing business models.
The document discusses the problems and opportunities that new media technology poses for record labels, artists, and consumers. It notes that illegal downloading reduces funding for record labels and makes it difficult for up-and-coming artists to secure contracts. However, it also allows artists to promote themselves online and gain recognition through illegal file sharing, potentially leading to contracts. The document asks about alternative solutions to restricting internet access to address illegal downloading and seeks information on current debates around digital piracy legislation.
Digital Distribution & Marketing for FilmmakersScott Kirsner
Slides for a workshop on how filmmakers can use the Internet (and other new technologies) to market and distribute their work. This is a talk I've been giving at film schools, and most recently, the Film Arts Foundation in San Francisco. Related blog: http://cinematech.blogspot.com
The document summarizes the changes in the music business over recent years. It discusses the decline of record sales due to the rise of digital music and illegal downloading. While digital music sales are increasing, they have not offset the losses from physical sales. New business models like subscription services and live concerts/merchandise are emerging as artists seek ways to monetize their music. Overall, the traditional record industry is struggling to adapt to these changes and find an effective strategy to address illegal piracy and transform their business model for the digital age.
The document discusses several key topics related to the film industry, including media ownership, synergy, convergence, new technologies, and their impacts. It notes that major Hollywood studios dominate the international film industry through vast resources that allow widespread release and marketing of titles. New technologies have impacted film production, distribution, and exhibition, including through digital filmmaking, social media marketing, and viewing options like video on demand. Both opportunities and challenges are presented by these new technologies for audiences and media institutions.
1) Cálico Electrónico was created as a character for an e-commerce website and gained a large online following, accumulating thousands of fans.
2) The company was the first to use Flash for animation and the first worldwide to create a feature film with Flash, winning awards for innovation.
3) The company's strategy was to launch products online at low cost to build a brand and fan base before moving to more expensive traditional formats like film and TV.
This document summarizes key changes in business models and consumer behavior driven by digital technologies between 2000-2010. It discusses how digitization and the internet enabled universal access to services, content and people, shifting from scarcity to abundance. New business models emerged like freemium, advertising, cross-subsidies and zero marginal cost. Consumers transitioned to renting/streaming content instead of owning physical copies. Marketing also shifted from traditional methods to conversational approaches by participating in online discussions.
The document discusses BitTorrent Bundle, a new file format from BitTorrent that allows for immersive digital experiences beyond just video or music. It can contain a variety of media types like photos, notes, and interactive elements. BitTorrent Bundle is designed for rich fan engagement and experiences, to be shared socially, and for content to increase in value with each share. Examples are provided of how musicians and film studios have used Bundle successfully for album launches, promotions, and distributing exclusive bonus content.
Digital technologies are fundamentally changing the film industry from production to distribution to exhibition. Films themselves are being transformed as they are increasingly being shot in digital formats rather than film. Technologies like 3D and IMAX are also reshaping theatrical exhibition. At the same time, new platforms like DVDs, Blu-Rays, streaming, and online piracy are challenging traditional models of distribution and consumption. This technological evolution is both opening new opportunities for the film industry and posing new threats around piracy and windowing of content across platforms.
Transcribe rhythm is an accessibility tool that adds soundless musical experiences to streaming media to make it accessible to deaf people. It generates a rhythmic data stream that can be connected to video players to use beats for custom experiences. While vibration devices and audio visualization software exist, Transcribe rhythm provides a unique solution. It has validated its market with partnerships like the Deaf Culture Centre of Canada and positive feedback from Peloton customers. The company is targeting the large and growing streaming media market by offering licenses and integration options to both large and small publishers.
Monetizing Music in a connected society (Berklee alumni event in Nashville)Gerd Leonhard
The complete 90-page PDF of my presentatio on how to monetize music online (ie. make money with it:)... covering a slew of related topics such as marketing, promotion, social media, facebook commerce, branding, copyright, licensing etc... video to follow soon. enjoy
Illegal downloading and copyright 2012 6 fLiz Davies
The document discusses the problems and opportunities that new media technology poses for record labels, artists, and consumers.
For record labels, it poses the risk of losing their business as people illegally download music. For artists, they may not make money from their work if it is illegally downloaded. For consumers, illegally downloading music is against the law and they could lose internet access.
However, new media also provides opportunities. It allows unknown artists to gain exposure and a larger fanbase through platforms like YouTube. Artists can make money through concerts rather than relying on royalties. And consumers can discover new music for free and use that to support artists at concerts.
This presentation was provided by Justyn Baker of Naxos of America, Inc., during the NISO event "Digital Resources: Working with Formats Beyond Serials," held March 4 - 6, 2008.
1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files.
2) The recording industry saw this as a threat and violation of copyright, suing Napster. Though decentralized networks like Gnutella emerged after Napster's shutdown.
3) The document analyzes Hollywood's response to P2P and digital distribution, arguing the movie studios prefer centralized, controlled services that maintain existing business models, despite economic advantages of decentralized models.
The document discusses the history and future of the music industry. It covers the evolution of music from pre-historic instruments to modern digital formats like MP3s and the impact of technology like the CD, MP3 players, and internet downloading. The document also examines the debate around digital music piracy and arguments from both sides of the issue. It suggests the music industry needs to embrace new technology to adapt to changes in how consumers obtain and listen to music.
Netflix was founded in 1997 by Reed Hastings and Marc Randolph. It initially started as a DVD rental service called Kibble and was launched in 1998. In 2007, Netflix introduced streaming services and is now available in over 190 countries with over 148 million paid subscribers. Netflix competes in the online streaming market against competitors like HBO, Amazon Prime, Disney+, and Hulu. It has experienced exponential growth and relies on original content and a global customer base as strengths, but also faces challenges like increasing costs and competitive pressures.
Napster and Mp3: Redefining the music industryPuneet Arora
The music industry has undergone significant changes due to new digital technologies and file sharing. The rise of mp3 formats and sites like Napster made it easy to share music files online, threatening the business models of record labels and music companies. While sites like Napster grew rapidly in users, they also faced legal challenges for facilitating copyright infringement. Looking ahead, the industry must address challenges of piracy while developing new digital business models to adapt to trends of online music consumption.
The document discusses several topics related to changes in the film industry including cross media convergence, technological convergence, piracy, film exhibition, budgets and figures, hardware production/distribution/exhibition, distribution examples for Avengers and Submarine, digital technology's role in production/distribution/exhibition, and media ownership. Key points are that cross media convergence increases potential audiences and profits by making content available on multiple platforms, and technological convergence allows wider access to content through combination of technologies in one device.
Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organizational structure created in the 20th century cannot survive when new digital solution are being offered. Software is changing the way traditional business operate. People now have smartphones in their pockets - a supercomputer that is 25,000 times more powerful and the minicomputers of the 1960s. This is changing people´s behaviour and how people shop and use services. The organisational structure created in the 20th century cannot survive when new digital solution are being offered. The hierarchical structure of these established companies assumes high coordination cost due to human activity. But when the coordination cost drops
The organisational structure that companies in the 20th century established was based on the fact that employees needed to do all the work. The coordination cost was high due to the effort and cost of employees, housing etc. Now we have software that can do this for use and the coordination cost drops to close-to-zero. Another thing is that things become free. Consider Flickr. Anybody can sign up and use the service for free. Only a fraction of the users get pro account and pay. How can Flickr make money on that? It turns out that services like this can.
Many businesses make money by giving things away. How can that possibly work? The music business has suffered severely with digital distribution of content. Should musicians put all there songs on YouTube? What is the future business model for music?
1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files.
2) The recording industry saw this as a threat and sued Napster for copyright infringement, eventually shutting it down. However, new decentralized P2P networks like Gnutella emerged.
3) While P2P networks provide benefits to consumers and could be profitable if legal, the major Hollywood studios have resisted embracing digital distribution and instead promote centralized, licensed services to maintain existing business models.
1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files.
2) The recording industry saw this as a threat and sued Napster for copyright infringement, eventually shutting it down. However, new decentralized P2P networks like Gnutella emerged.
3) While P2P networks provide benefits to consumers and could be profitable if legal, Hollywood studios have resisted embracing digital distribution and instead promote centralized, licensed services to maintain existing business models.
The document discusses the problems and opportunities that new media technology poses for record labels, artists, and consumers. It notes that illegal downloading reduces funding for record labels and makes it difficult for up-and-coming artists to secure contracts. However, it also allows artists to promote themselves online and gain recognition through illegal file sharing, potentially leading to contracts. The document asks about alternative solutions to restricting internet access to address illegal downloading and seeks information on current debates around digital piracy legislation.
Digital Distribution & Marketing for FilmmakersScott Kirsner
Slides for a workshop on how filmmakers can use the Internet (and other new technologies) to market and distribute their work. This is a talk I've been giving at film schools, and most recently, the Film Arts Foundation in San Francisco. Related blog: http://cinematech.blogspot.com
The document summarizes the changes in the music business over recent years. It discusses the decline of record sales due to the rise of digital music and illegal downloading. While digital music sales are increasing, they have not offset the losses from physical sales. New business models like subscription services and live concerts/merchandise are emerging as artists seek ways to monetize their music. Overall, the traditional record industry is struggling to adapt to these changes and find an effective strategy to address illegal piracy and transform their business model for the digital age.
The document discusses several key topics related to the film industry, including media ownership, synergy, convergence, new technologies, and their impacts. It notes that major Hollywood studios dominate the international film industry through vast resources that allow widespread release and marketing of titles. New technologies have impacted film production, distribution, and exhibition, including through digital filmmaking, social media marketing, and viewing options like video on demand. Both opportunities and challenges are presented by these new technologies for audiences and media institutions.
1) Cálico Electrónico was created as a character for an e-commerce website and gained a large online following, accumulating thousands of fans.
2) The company was the first to use Flash for animation and the first worldwide to create a feature film with Flash, winning awards for innovation.
3) The company's strategy was to launch products online at low cost to build a brand and fan base before moving to more expensive traditional formats like film and TV.
This document summarizes key changes in business models and consumer behavior driven by digital technologies between 2000-2010. It discusses how digitization and the internet enabled universal access to services, content and people, shifting from scarcity to abundance. New business models emerged like freemium, advertising, cross-subsidies and zero marginal cost. Consumers transitioned to renting/streaming content instead of owning physical copies. Marketing also shifted from traditional methods to conversational approaches by participating in online discussions.
The document discusses BitTorrent Bundle, a new file format from BitTorrent that allows for immersive digital experiences beyond just video or music. It can contain a variety of media types like photos, notes, and interactive elements. BitTorrent Bundle is designed for rich fan engagement and experiences, to be shared socially, and for content to increase in value with each share. Examples are provided of how musicians and film studios have used Bundle successfully for album launches, promotions, and distributing exclusive bonus content.
Digital technologies are fundamentally changing the film industry from production to distribution to exhibition. Films themselves are being transformed as they are increasingly being shot in digital formats rather than film. Technologies like 3D and IMAX are also reshaping theatrical exhibition. At the same time, new platforms like DVDs, Blu-Rays, streaming, and online piracy are challenging traditional models of distribution and consumption. This technological evolution is both opening new opportunities for the film industry and posing new threats around piracy and windowing of content across platforms.
Transcribe rhythm is an accessibility tool that adds soundless musical experiences to streaming media to make it accessible to deaf people. It generates a rhythmic data stream that can be connected to video players to use beats for custom experiences. While vibration devices and audio visualization software exist, Transcribe rhythm provides a unique solution. It has validated its market with partnerships like the Deaf Culture Centre of Canada and positive feedback from Peloton customers. The company is targeting the large and growing streaming media market by offering licenses and integration options to both large and small publishers.
IMAX introduced large-format, high-quality film viewing in 1967 that provided an immersive experience through large screens and surround sound. Digital video cameras, introduced in 1976, made filmmaking significantly cheaper than 35mm film but also enabled easier piracy. High-definition technology, introduced in 1979, provided higher quality viewing but was argued by some to be lower quality than 35mm film. The internet, introduced in 1982, provided many new opportunities for filmmakers and viewers to connect but also facilitated mass piracy through file sharing.
Digital technology has revolutionized film production, distribution, marketing and exhibition. It has made films cheaper and easier to make and distribute, while enhancing the viewing experience through technologies like 3D and IMAX. Audiences have become more active "produsers" through technologies like social media that allow them to engage more directly with content. This fragmentation makes it harder for institutions to reach all audiences with one message. Relationships between institutions and audiences have changed, with audiences now pulling content through various platforms rather than just having institutions push media to them. The film industry has been impacted through the "long tail" effect of increased online distribution broadening audiences, and through new technologies used in production and new forms of marketing and exhibition.
The document discusses the history and advantages/disadvantages of digital video, video on demand, 3D technology, high definition, and the internet as they relate to film. Digital video records directly onto a hard drive rather than using physical film. Video on demand systems allow users to watch content when they choose rather than at a scheduled time. 3D films provide an immersive experience for viewers but can cause eye strain. High definition provides better image quality but requires more bandwidth. The internet has revolutionized film distribution through streaming services and social media promotion, but also enables illegal piracy.
The document discusses the history and advantages/disadvantages of digital video, video on demand, 3D technology, high definition, and the internet as they relate to film. Digital video records directly onto a hard drive rather than using physical film. Video on demand systems allow users to watch content when they choose rather than at a scheduled time. 3D films provide an immersive experience for viewers but can cause eye strain. High definition provides better image quality but requires more bandwidth. The internet has revolutionized film distribution through streaming services and social media promotion, but also enables illegal piracy.
The document summarizes the 2010 IFPI Digital Music Report. It discusses how the music industry has led the way in the digital revolution by licensing music to over 400 online services. However, digital piracy remains a major barrier to growth, with global music sales falling 30% from 2004-2009. The report examines pioneers in digital music and new business models, but says unchecked piracy prevents investing in new artists and taking digital music to the mass market. It advocates graduated response measures and ISP cooperation to effectively address the problem of piracy.
Spotify Technology S.A. is a Swedish media-services provider founded in 2006. The company's primary business is its audio streaming platform that provides DRM-protected music and podcasts from record labels and media companies
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1. The Entertainment
Industry in Crisis
An Examination of the Future of Online Media Models
Greg Zuk
2. In a State of Crisis
Introduction of the Internet
P2P File Sharing
Piracy
Current Business Models Failing
Milos Forman (Academy Award Winning Director): “Now, we all know the reasons
why we are here today. The most important one sounds very romantic: piracy. In my childhood
games I always wanted to be a pirate. Not his victim. I’d prefer to call it what it really is: a theft.
Internet thievery. When you think about it, Internet today is functioning as a dreamlike
supermarket where you can go, take anything your heart desired without paying for it.”
3. Business Models No Longer Cutting It
DVD and CD sales plummeting
Traditional Business Models not yielding enough
Home Video sales normally account for 50% of a
film’s process
CD Sales are primary channel for Record companies
to recoup their costs
5. Decline in DVD Sales Over Time
“Every studio is claiming, ‘We’re
O.K. so far, but we’ve looked at the
overall competitive sales data and
we have some concerns,’ ”-Amir
Malin, Qualia Capital
"Blockbuster films are generating
fewer DVD unit sales than in
previous cycles. Where a big picture
used to sell 20 million units, top
movies now struggle to reach 10
million units."-Alan Gould, Analyst
6. Where are We Now
Current Entertainment Business Model is Failing
Time to look to the FUTURE is NOW
Completely open field
Must act before situation worsens
Potentially Extremely Lucrative
8. Michael Rappa
Founder and Director of North
Carolina State University’s Institute
of Advanced Analytics
Former MIT Professor
Host and Co-Chair of the 19th
Annual World Wide Web Conference
Well Regarded for his work in
technology education
Pioneer in Internet Business Models
9. What is a business Model?
A Business Model “is the method of doing business by which a company can
sustain itself -- that is, generate revenue. The business model spells-out how a
company makes money by specifying where it is positioned in the value chain.”-
Michael Rappa
Same idea translates to the digital marketplace
Though philosophy same, web offers plethora of new options and
opportunities
Exchange rate of information and ideas almost unimaginable
12. Brokerage
Bring buyers and sellers
together to create a
transaction
Charge a fee for bringing
the transaction together
Orbitz, PayPal, Ebay,
Priceline.com
13. Advertising
Based around traditional business
model
Charge to advertise on website space
banner ads, pop ups, etc.
Sell advertising information
registering for a website like
nytimes.com
Favorable position on searches
google
14. Infomediary
Consumer or business habits are
of primary importance
Peoples tendencies can be
tracked on the web and this
information can be very valuable
help understand the market
DoubleClick (google owned),
Nielsen ratings
15. Merchant
Sounds like what it is
Wholesalers and retailers
sell goods or services in
web markets
Can either be purchased
outright or bid upon
16. Manufacturer/Direct
Web allows the actual
manufacturer to reach the customer
Eliminates need for middleman
Can purchase, lease or license
directly from the owner
benefits both the consumer and
manufacturer
Dell Computer
17. Affiliate
Websites that make deals with
larger websites to allow for the
larger sites to sell goods on the
smaller website or link themselves
through the smaller site
Pay Per Click
Percentage of the Sale
Amazon or Barnes and Noble
Hemingway Example
18. Community
Based around loyalty and high
user attachment
Revenue extracted from
donations or sale of
supplementary products or
services or utilizing an additional
model such as advertising
Open Source, Open Content,
Social Networks
19. Subscription
Pay a fee for access to the
content
Like a magazine on television
subscription
Normally utilizes other models
such as advertising to increase
revenue
Netflix
23. DIVX Disaster
Digital Video Express (2/3 Owned by Circuit City) invented a DVD rental system based around a special encryption software
Can’t copy or pirate the DVD due to the encryption
Came with Modem, Memory, and Encryption Chip
Pay with the modem and your account
Can watch for 48 hours after playing
$300-$500 to get the player attached to regular DVD player
Purchase the rentable discs from Circuit City locations
Massive Failure
Stopped After two years
Cost CC about $114 Million
People preferred to own
Was not popular with film studios
24. The Iron Hand of DRM
Digital Rights Management
Encryption Software attached to entertainment media to prevent consumers from copying it or pirating it
Supported by 1998 DMCA
prevents all circumvention of DRM locks
AACS Technology
Placed on HD DVD as encryption software 2006
Encryption key broken and distributed widely on the net
several times
Huge embarrassment to the film industry
Reaction
Many proponents of remix or free culture have come out very harshly against DRM technology
limits our culture
fair use
Failure
25. Radical Radiohead
Online Release of In Rainbows (2007)
Released without a label
Pay what you want for the first disc online
1.2 million people downloaded
Average about $5 paid
Several packages including actual CD and Vinyl form for a larger fee
$80 deluxe package
Massive Success
Appealed to the average listener as well as the fanatic
Many bands have followed in this fashion
Metallica who famously came out against Napster
26. iTunes dOminates dIgital
Digital media player created by Apple that is compatible with all current operating systems
Released in 2001
Plays video and music
Also has podcasts and live radio integrated
New Genius feature also a revolutionary technology in musical experience
iTunes store
Purchase tracks or albums of all artists agreeing
99 cents a track (increased on some songs due to record label complaints)
Typically $9.99 for an album (depending on the album)
Initially DRM attached to their sold tunes
As of 2009 no longer the case
Shows the power iTunes has over the record labels
Offers the music cheaper than the record labels would like, but the ease of the program and relative affordability
has made it a massive success
27. Netflix
Online movie rental house
revolutionized the home video industry
Founded in 1997 by Reed Hastings
Order all DVDs online and have them delivered to your house
Subscription model with a fee as low as $8.99
includes 1 DVD and unlimited streaming of films
Only certain distributors give their movies to Netflix
Takes away from their DVD sales overall
Competed directly with Blockbuster
formerly closely associated to Viacom
Keep revolutionizing
Deals with Sony and Microsoft to stream Netflix directly to the video game systems
Deals to get it through Blu-Ray Players
Deals with Tivo
Deals to stream directly to the TV
28. Pandora’s Struggle
Online Streaming Music Player that offers customizable song list based on what the consumer enjoys
Created by the Music Genome Project
Hugely innovate technology trying to break down musical taste
Available through both mobile phone and computer internet access
Two business models to choose from
40 hours Free Advertisement based business model + $.99 after that
or An advertisement-less model $36 annually
Special functions
Cannot skip more than 12 songs per 24 hours unless you have Vista or a paid account
Artists consistency is limited
Royalties
Got into royalty and copyright disputes in 2007
Almost went bankrupt had to go to a semi-subscription model to stay alive
Almost lost their fan base, who wanted free streaming music
While Pandora it sustains it is hard to consider it a massive success
it will continue to be fought by the record companies and as it becomes less and less free other more attractive models will take over
29. Innovative Artistshare
A website that facilitates the donation of funds to artists in exchange for
aiding in the creative process
Allows fans to feel a part of the process
VIP treatment and credit on all works
Good for small scale artists to have access to the funding they need
Small celebrities such as Rick Moranis
A definite positive step, but far too idealistic in terms of becoming
mainstream
31. Two Horses of Two Different Colors
Both the film and the music
industry are certainly in crisis
Require two different Models
Music Industry is 10 years
further worse off
Napster
Cinemas are still a
powerful draw
33. P2P Collective Societies
Voluntary collective licensing: Electronic Frontier Foundation
Music industry created collections of music that can be accessed for a monthly fee
fee is divided up amongst the rights holders based on popularity of songs
Can be integrated into the Internet bill to be less abrasive
download as much as you like and share with whatever program you want
Completely open to competition, which will allow for music labels to stay alive while
existing in a reasonable and updated environment
Promotes the industry’s involvement in digital music so that it can work to further the
business model
Resistance to the model will only hurt in the long run
34. In Exchange
There MUST be stricter enforcement of illegal downloading
If there is to be cheap legal file sharing then the illegal
must be eliminated
Since there is a strong possibility of the fee being
integrated into the Internet bill, the internet companies
must be stringent in their monitoring of all ILLEGAL
downloading
35. Follow Radiohead’s Example
Continue to release new albums as Radiohead did
Pay what you want limited quality downloads
Special packages to still sell CDs and Vinyls to fans
the better the packages the more money that can be made off of
them
Delay the release of the new album for a few months in the
Collectives
Market through social networks and the digital super highways
36. The Live Spectacle
Increase efforts in making the live show as profitable as possible
Try to achieve the consistency of movie theatres
Utilize the instantaneousness of the Internet
Stream Live shows on the web for free
Record all Live shows and offer them for immediate sale
or almost immediate
37. The Record Labels’ Demise
This plan spells only one ultimate end for record labels: DEATH
The majority of the focus in this plan is on the Artist and if the Artists can, like
Radiohead begin to detach themselves from the labels, the labels will no longer
exist
It will not be immediate, but with the success of social networking sites like
MySpace and Facebook in terms of marketing it is only natural
Moreover increased technology has made it easier and cheaper for musicians
to practice their craft, which further distances them from the labels
Artists have begun their move for control of their craft and the Internet is
affording them that opportunity
39. Continue to Maximize the Theatrical
Experience
Theatre sales have consistently managed to stay high through both good and bad economic
times
Must Continue to Capitalize on this one of a kind spectacle
More films into IMAX
More use of 3-D
James Cameron has called 3-D the future of cinema
Maximize the technology to create a truly AWEsome cinematic experience
Charge slightly more for the service, but deliver much more in the seats
Offer additional categories at the Academy Awards for innovation in technology
40. Cut those Costs
High Print and Advertisement Costs grossly limit the theatrical release of most films
Around $4000 per print of a film and you need a print for every single theater you want to
show the film
Convert to Digital
Large initial cost, but will pay off in the long run
Korea has had great success with this method
Highest quality
Opens up the industry for the smaller fish
Keep 35mm, but integrate digital to massively reduce the amount of prints needed
Do not ever have to actually have any prints made--choose only digital screens
41. New Distribution Window
With the waning sales of DVDs, it is time to restructure the distribution timeline by introducing a new or potentially several new windows
for films to be distributed
Producer of the Year Ryan Kavanaugh has been supporter of Video on Demand technology to create new Window
Must create a window shortly after the theatrical release of the film through VOD and Online Video Game Systems
Increase the revenue on the release of films, for people who don’t like to go to the cinema
Then Shortly after this window an additional window should be streamed online on websites run by the Studios
Product will be out there anyway, offer highest quality for a small fee and continue to attract those who did not want to go to the
theater
Studios can then offer the same service for their libraries and charge a larger subscription fee for access to these films
Studios need to make up for their lost DVD rentals and sales; Digital is the new platform
Continue to sell the latest technology physical copies of films, but make sure to load them with special features to attract true fanatics
Can charge slightly more and still attract a great deal of true film fans
Attacks the major competitors of Netflix and Piracy by offering quality content controlled by the content creators at a reasonably fast
distribution rate for an appropriate fee
42. Ultimately...
Ultimately, no matter how many new distribution windows
the film industry inserts to attempt to increase profits, the
Hollywood Hot Shots must learn to accept lower profits than
the times before the Internet
I am confident these models will succeed and boost the film
industry, but profits will not be as high
43. In Conclusion...
Unfortunately, no matter how close my assumptions and
presumptions have brought me to the future of the
entertainment industry’s business model, the model will
always be changing. What is right now may be trash
tomorrow. The Internet is a fluid marketplace and we must
always be on our toes to keep up with its evolutions.