The Future of Media
Digital media business and broadcasting -
   opportunities, trends and scenarios


 ★ twitter.com/gleonhard
 ★ www.mediafuturist.com
 ★ www.music20thebook.com
 ★ www.gerdtube.com & .net
The challenge: New Models!
        Content Consumption (all)
        Revenue Potential
        Success with Traditional Content Models




Was           Is               2 years            5 years
The crisis of the Content Business
• Mere copies of content are de-facto ‘free’
• The Internet is a giant copy machine - and it’s rapidly
    growing in size and reach (and now: mobile!)
•   Selling copies is a rapidly declining business model
    (Music, DVDs, Magazines, Newspapers...)
•   Broadband culture drives further commodization
•   What used to be paid for is now often free
•   Digital revenues are not nearly enough to make up for
    the loss of physical sales (1:5 ratio!)
•   Developing countries have no pay-by-unit tradition
But this is not about technology...




 The Age of Collaboration
Emerging cultural practices
   New business models
The Future: connecting the users is the key to success
Copy Economy



   Access /
Usage / Sharing
  Economy
All of a sudden

                           COMMU-
                          NICATION MEDIA
                                     &
SEARCH   CONTENT   ADVER-   &      ENTER-
                   TISING           TAIN-
                           TELE-   MENT
                           COM
Despite all the current gloom & fear:
                                             Bundles and Flat
                                            Rates will drive this
    MUCH bigger
   potential (imho)




                                               Huge potential - once
                                                licensing issues are
                                                       solved
             Source: IBM Institute for Business Value Study
The new Content Economy: the User is a major force
Starting in 2009:
• Total convergence of Telecom & Web Layers
• Deep collaboration becomes the KEY
  requirement for creating new business opps
• Over-the top layers (search, social media...)
  will come down, telecoms will move up!
2010: ‘Telecom’ and Media = TeleMedia


Experience Platform
        Service Pipe
          Content Pipe

              Data
              Pipe
Media will follow the switch from Closed to Open
Value of ‘a Copy’            Value of CONTEXT
         Value of Meta-Content        Value of Experiences
         Value of Packaging
               Value Trends (by Gerd Leonhard)
                                                      Value of Context
100%
                                                   Value of Experience
                                                 Value of Meta-Content
                                                    Value of Packaging
75%



50%



25%
                                                  Value of ‘a Copy’

 0%
   Was            Is                  Soon              The Future
The Age of Collaboration:

  Egosystem
    becomes
Ecosystem
Digital Content Trends
       Music     Video     Games       Books       Mags & Print

           Percentage of Revenues from Digital Services
100%


75%


50%


25%


 0%
   2008         2009          2010          2012           2015
Source: The Standard
TOTAL Mobility Everywhere
 CONSTANT Peering and Connecting
DEEP Oceans of Content & Information
• Straight to Digital Content
• Straight to Bundled Access
• Straight to Mobile
• Straight to next-gen Advertising
Remixed and User-made Content:
 50% of consumption by 2015?
The Future of Content: Copy $ down, Attention $$ up
             Copy Based Revenues    Attention Based Revenues

10.0




 7.5




 5.0




 2.5




  0
       Was             Is          Soon       Near Future      Mid-term Future
$3 per app to do what
  people would do for free,
 anyway: listen to their music
         A great alternative to
    getting Radio-Play (i.e.
            NetPlay)
          A great way to sell
concert tickets and offer other
   location-based services
           A direct line of
communication - from band
     to fan - is worth Gold
This is where Content resides now...
The Future of Content is in

the   Cloud and the
      Crowd
• Collaborative Revenue Models
•The joint development
 of New Generatives
 based on Open Access
Media $$$: no
longer about
 Distribution
A good example of how not to do this...
Listening, Reading or Watching
              =
 Keeping, Copying
    & Sharing
‘Free’




  ‘Free’
Content on the Internet will be licensed like we
 license Radio & TV, today - starting with Music

• Online access = content access
• Music access = payment included
• Create a new ecosystem on-top!
Permission, accounting and... compensating
The Printing Press
brought us
Copyright
The Internet brings
 Usage-
us
Rights
Google & Free Music in China
• Free / Feels Like Free Music for China!
• Unlimited, unprotected downloads
• Paid with Attention, $-ized via Ads
• In China, little ‘cannibalization’ concerns
• Google is willing to ‘lubricate’
• Industry willing because: China is ‘lost’ for
 traditional Copyright
Next
             Generation
            ‘Advertising’
             New
New Data   Content
           Economy
Economy
In this world, Permission, Attention and
Trust leads to Content’s Remuneration
Questioning assumptions
So should we control what People do online
in order to protect a traditional business model?
‘New Money’ Examples
Social Media is becoming... CRM!
Advertising...?
The new Generatives of Content
influenced by Kevin Kelly, Chris Anderson, Don Tapscott, Yochai Benkler...

              Conversation
           Convenience
        Selection / Filtering
                          Packaging
                     Individualization
              Immediacy

      Tr u s t
Average Available Time         Available Choices        Average Available Attention



               Attention, Choice & Curation Trends (Gerd Leonhard)

100%



75%



50%



25%



  0%
    Was                    Is                   Soon                 The Future
Example: the difference between




   iStockphoto photos are purchased
   because of:
  • Much better metadata.
  • Better findability.
  • Faster service.
  • Low & attractive price-points
New Generatives and The Future of Television
The TV experience is becoming
unified across all screens
What’s new about that?
• Your own, unique selection
  of add-ons, widgets and
  applications on all platforms
• This TV
 knows
 who you
 are!
And how will we experience all this?
The Sharing Economy Logic
        ...the Output (i.e. publish, re-
        mix, co-create, life-stream...)
        the Input (i.e. remuneration in
        cash, attention, reputation...)
        ... the Thruput (i.e. usage
        data, meta content, attention
        trails >> New Data Economics)
Welcome to the Culture of Collaboration
 • Collaborative value creation: new $$$ together
 •Make Money around the content
  •Compensation not Control
‘Free’ gets my Attention...




Merit and Trust gets my Money.
Thanks for listening!



Please talk back
★ email me at gerd@mediafuturist.com
★ twitter.com/gleonhard
★ facebook: gleonhard
★ more presentations at
  www.mediafuturist.com

The Future Of Media (Gerd Leonhard)

  • 1.
    The Future ofMedia Digital media business and broadcasting - opportunities, trends and scenarios ★ twitter.com/gleonhard ★ www.mediafuturist.com ★ www.music20thebook.com ★ www.gerdtube.com & .net
  • 3.
    The challenge: NewModels! Content Consumption (all) Revenue Potential Success with Traditional Content Models Was Is 2 years 5 years
  • 4.
    The crisis ofthe Content Business • Mere copies of content are de-facto ‘free’ • The Internet is a giant copy machine - and it’s rapidly growing in size and reach (and now: mobile!) • Selling copies is a rapidly declining business model (Music, DVDs, Magazines, Newspapers...) • Broadband culture drives further commodization • What used to be paid for is now often free • Digital revenues are not nearly enough to make up for the loss of physical sales (1:5 ratio!) • Developing countries have no pay-by-unit tradition
  • 5.
    But this isnot about technology... The Age of Collaboration Emerging cultural practices New business models
  • 6.
    The Future: connectingthe users is the key to success
  • 8.
    Copy Economy Access / Usage / Sharing Economy
  • 9.
    All of asudden COMMU- NICATION MEDIA & SEARCH CONTENT ADVER- & ENTER- TISING TAIN- TELE- MENT COM
  • 10.
    Despite all thecurrent gloom & fear: Bundles and Flat Rates will drive this MUCH bigger potential (imho) Huge potential - once licensing issues are solved Source: IBM Institute for Business Value Study
  • 11.
    The new ContentEconomy: the User is a major force
  • 12.
    Starting in 2009: •Total convergence of Telecom & Web Layers • Deep collaboration becomes the KEY requirement for creating new business opps • Over-the top layers (search, social media...) will come down, telecoms will move up!
  • 13.
    2010: ‘Telecom’ andMedia = TeleMedia Experience Platform Service Pipe Content Pipe Data Pipe
  • 14.
    Media will followthe switch from Closed to Open
  • 16.
    Value of ‘aCopy’ Value of CONTEXT Value of Meta-Content Value of Experiences Value of Packaging Value Trends (by Gerd Leonhard) Value of Context 100% Value of Experience Value of Meta-Content Value of Packaging 75% 50% 25% Value of ‘a Copy’ 0% Was Is Soon The Future
  • 17.
    The Age ofCollaboration: Egosystem becomes Ecosystem
  • 18.
    Digital Content Trends Music Video Games Books Mags & Print Percentage of Revenues from Digital Services 100% 75% 50% 25% 0% 2008 2009 2010 2012 2015
  • 19.
  • 20.
    TOTAL Mobility Everywhere CONSTANT Peering and Connecting DEEP Oceans of Content & Information
  • 21.
    • Straight toDigital Content • Straight to Bundled Access • Straight to Mobile • Straight to next-gen Advertising
  • 22.
    Remixed and User-madeContent: 50% of consumption by 2015?
  • 23.
    The Future ofContent: Copy $ down, Attention $$ up Copy Based Revenues Attention Based Revenues 10.0 7.5 5.0 2.5 0 Was Is Soon Near Future Mid-term Future
  • 24.
    $3 per appto do what people would do for free, anyway: listen to their music A great alternative to getting Radio-Play (i.e. NetPlay) A great way to sell concert tickets and offer other location-based services A direct line of communication - from band to fan - is worth Gold
  • 25.
    This is whereContent resides now...
  • 26.
    The Future ofContent is in the Cloud and the Crowd
  • 27.
    • Collaborative RevenueModels •The joint development of New Generatives based on Open Access
  • 28.
    Media $$$: no longerabout Distribution
  • 29.
    A good exampleof how not to do this...
  • 30.
    Listening, Reading orWatching = Keeping, Copying & Sharing
  • 31.
  • 32.
    Content on theInternet will be licensed like we license Radio & TV, today - starting with Music • Online access = content access • Music access = payment included • Create a new ecosystem on-top!
  • 33.
  • 34.
    The Printing Press broughtus Copyright The Internet brings Usage- us Rights
  • 35.
    Google & FreeMusic in China • Free / Feels Like Free Music for China! • Unlimited, unprotected downloads • Paid with Attention, $-ized via Ads • In China, little ‘cannibalization’ concerns • Google is willing to ‘lubricate’ • Industry willing because: China is ‘lost’ for traditional Copyright
  • 36.
    Next Generation ‘Advertising’ New New Data Content Economy Economy
  • 38.
    In this world,Permission, Attention and Trust leads to Content’s Remuneration
  • 39.
  • 40.
    So should wecontrol what People do online in order to protect a traditional business model?
  • 41.
  • 43.
    Social Media isbecoming... CRM!
  • 44.
  • 46.
    The new Generativesof Content influenced by Kevin Kelly, Chris Anderson, Don Tapscott, Yochai Benkler... Conversation Convenience Selection / Filtering Packaging Individualization Immediacy Tr u s t
  • 47.
    Average Available Time Available Choices Average Available Attention Attention, Choice & Curation Trends (Gerd Leonhard) 100% 75% 50% 25% 0% Was Is Soon The Future
  • 48.
    Example: the differencebetween iStockphoto photos are purchased because of: • Much better metadata. • Better findability. • Faster service. • Low & attractive price-points
  • 49.
    New Generatives andThe Future of Television
  • 50.
    The TV experienceis becoming unified across all screens
  • 51.
    What’s new aboutthat? • Your own, unique selection of add-ons, widgets and applications on all platforms • This TV knows who you are!
  • 52.
    And how willwe experience all this?
  • 54.
    The Sharing EconomyLogic ...the Output (i.e. publish, re- mix, co-create, life-stream...) the Input (i.e. remuneration in cash, attention, reputation...) ... the Thruput (i.e. usage data, meta content, attention trails >> New Data Economics)
  • 55.
    Welcome to theCulture of Collaboration • Collaborative value creation: new $$$ together •Make Money around the content •Compensation not Control
  • 57.
    ‘Free’ gets myAttention... Merit and Trust gets my Money.
  • 58.
    Thanks for listening! Pleasetalk back ★ email me at gerd@mediafuturist.com ★ twitter.com/gleonhard ★ facebook: gleonhard ★ more presentations at www.mediafuturist.com