My presentation at MidemNet 2010, in Cannes France. How to monetize music when the copy is free: Defining Monetization: 1.A real-cash transaction of any
kind (often pre-consumption)
2.Revenue Sharing (usually
post-consumption)
3.Non-cash remunerations
4.Upstream payments
(Freemium)
3. None of these ideas will work if...
There is no real merit, value and
uniqueness in what you do
You don’t have an audience (attention)
You are not willing, or not able to talk
to your fans, all the time
You really want to learn how to swim
but are still afraid to get wet
6. Making money is a
consequence of
Attention
(not the other way round)
7. Note: there is no one-fits-all recipe!
Not all Music is the same
Not all Money is the same
Not all Users are the same
Not all Cultures are the same
8. So what is ‘Monetization’?
1.A real-cash transaction of any
kind (often pre-consumption)
2.Revenue Sharing (usually
post-consumption)
3.Non-cash remunerations
4.Upstream payments
(Freemium)
9. Getting Paid for Creation *Hat tip to Shelly Palmer
3rd party
pays
You
pay You
I pay pay
3rd party
I pay
I pay
pays
3rd party pays
*constantly changing variations
11. 2 important distinctions
1) Monetize collectively
Public Broadcasting Blanket
Performance & Webcasting Licenses
Revenue
Bundles Flat Rates
Sharing
2) Monetize individually
Music Sales Sync Licenses Branding
Many others (coming up!)
12. Many other New Generatives
Community Premium Services Permission
High Definition & Premium Versions
Mobile Device Applications & Software
Monetize collectively
Live-Concerts, Web-Casts, Virtual Shows...
Flat Rates, Bundles, Revenue-Sharing
13. What does ‘selling music’ really mean?
• iTunes sales
• CD sales
• Songs used in Ads or Games
• Youtube clicks?
• Spotify plays?
• Last.fm plays?
• Facebook or Mog ‘Like’?
• Bookmarked song?
• Forwarded link via email?
How will you measure success?
14. The Music 2.0 Model Business Models
Business Models
Business Models
Artist /
Creator
15. Music Commerce 2.0:
don’t try to sell what is
Ubiquitous - sell what is
Scarce
Source: Chris Brogan
16. What is scarce? What could you sell?
Offers that save time, and
Users’ time and attention award / keep attention
Curation and Selection Offers that save the users from
Filtering, Context the overload and filter-failures
Offers that generate trust and
Trust create personal connections
Offers based on unique,
Meaningful experiences personal, real experiences
Offers that provide for real
Meaningful relationships conversations and connections
17. Offers that save time, and
award / keep attention
Offers that save the users
from the overload and filter-
failures
Offers that generate trust and
create personal connections
Offers based on a unique,
personal, real experience
Offers that provide for real
conversation and connections
39. My top 10 for ‘Monetizing Music’
from music products: downloads, CDs etc
from music services: streaming, bundles,
revenue sharing, flat-rates
from broadcasting & public performances
from licensing: synchronization / B2B deals
from branding & sponsorships
from live performances, concerts, events
from virtual concerts etc
from virtual goods (licenses)
from new kinds of ‘stuff’ (merchandising etc)
from direct-to-fan services
42. The process
1. Attract the right people by
offering relevant
Content
2. Get and hold their
Attention, build Trust
3. Think Followers not Users
4. Offer added values to
convert followers into $$
49. About Advertising and $ for Music
Yes, it has been disappointing up to now
Advertisers are usually 5 years behind
Global spend on Ads: ~ 700 Billion USD
Every large audience can be monetized
Mobile, video and social media ad
budgets will dramatically increase in the
next 18 months
It may take longer than anticipated - but
will end up much larger than we thought!
51. • ~ $ 900 Billion USD Global
Advertising Spend in 2012
• 30-50% shifting to digital
media / interactive / mobile
• Opt-in, personalized, targeted
Advertising = Content
• Ads have always paid for Content