Classical Music Communities
         New Models of Distribution!



                                        Soundstreams!
...
NO - Info Age is Local
Infrastructure IS Global!
   •  Banking and Communications!
BUT,!
Content and Culture are Local!


...
Example 1

MacDonalds Hamburgers!
  •  Chorizo Burgers in Mexico!
  •  Fish Burgers in Nova Scotia!
  •  Asterix, the Belg...
Example 2
Marvel Comix Introduced Spiderman India in 2004!
Local Indian Customs, Culture!
   •    Spider-Man Mythology Mor...
Example 3

Internet Filtering!
  •  Sexual Taboos (Cultural)!
     •  Arab Countries…!
  •  Political Taboos!
     •  Chin...
Challenge to Nationhood


Globalization of Culture Threatens
   National Sovereignty!
United Nations Guarantees!
  1.  Ter...
Local -> Global Actor




    Current CBC Challenges
Cutbacks to Classical Music Support!

  •  CBC Vancouver Orchestra El...
Info Age Music Opportunities
New Marketing for Classical Music!

New Sales for Classical Music!



Replace or Exceed Histo...
Changing Entertainment Business
20th Century Model!
  •  Manufacturing and Selling Products!
  •  Supplier Centric!
  •  C...
Online Channel is Different
Physical Distribution!
   •  Limited Shelf Space!
        •  Sheet Music!
        •  Recording...
Long Tail of Consumption
 Everything You Can’t Buy at the Local
   Mall, Where Shelf Space Limits
   Customer Choice!
   •...
Long Tail Book Sales




Blue is [Nielson] Sales of Mall Stores!
Red is Long Tail Sales of Online Store!




       Defini...
But, How Can We Find Titles?
Normal Search Engines Find Most Popular
  Titles First and Foremost!
How Can We Search the Lo...
Subscription Video
Roku Netflix Box $100 + $9/mth unlimited!
  •  aggregate “unpopular” movies are rented
     more then ag...
We Were Couch Potatoes




 Now We’re Interactive




                         15
Will We Be Fried Potatoes?




      Role of Music Centers
Nordic Information Centres Have Greatly
 Increased Online Activ...
Key Issues
 How to Expose Audiences to Classical
  Music Content so as to Trigger them to
  Close Transactions?!
   •    S...
Classical Music Communities
     New Models of Distribution!



                                   Soundstreams!
         ...
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Soundstreams New Models of Distribution Conference - Paul Hoffert Keynote Presentation

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Mr. Hoffert is CEO of Noank Media Inc. and co-founder of the award-winning rock band Lighthouse, among many other things. He was described by the Toronto Star as "the ideal visionary for the Digital Age".

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Soundstreams New Models of Distribution Conference - Paul Hoffert Keynote Presentation

  1. 1. Classical Music Communities New Models of Distribution! Soundstreams! Toronto! 080522! Paul Hoffert! We Live in a Global Village Harmonized Products, Services, & Programs! •  Across Territorial Boundaries! •  Across Political Boundaries! •  Across Cultural Boundaries! REALLY?! 1
  2. 2. NO - Info Age is Local Infrastructure IS Global! •  Banking and Communications! BUT,! Content and Culture are Local! Is The Global Village a Myth? We Think Global, But We Act Local! •  We Trust Only 20 People ! •  We Keep Track of Only 150 People! •  We Recognize Perhaps 1,000 Others! 2
  3. 3. Example 1 MacDonalds Hamburgers! •  Chorizo Burgers in Mexico! •  Fish Burgers in Nova Scotia! •  Asterix, the Belgian Comic Book Character has replaced Ronald MacDonald in European Advertising and Marketing! Culture Harmonization Images of Sex And Violence! •  Cross Cultural, Linguistic Boundaries! Trans-National Movies = Few Words! •  Sylvestor Stalone, Jim Carrey! EuroVision Music Show! •  Sex and Violence Images! •  Trans National! •  Trans Cultural! 3
  4. 4. Example 2 Marvel Comix Introduced Spiderman India in 2004! Local Indian Customs, Culture! •  Spider-Man Mythology More Relevant Locally! Pavitr Prabhakar Of Mumbai! •  Not Peter Parker of Queens, New York! Pavitr Leaps Rickshaws & Scooters! •  In Indian Streets! •  Swings From Taj Mahal! Spiderman (India) 4
  5. 5. Example 3 Internet Filtering! •  Sexual Taboos (Cultural)! •  Arab Countries…! •  Political Taboos! •  China…! One Nation’s Entertainment and Information is Another Nation’s Concern! Example 4 French & Dutch Euro NO Vote ! Infrastructure Harmonization YES! •  Euro! Political Harmonization NO! Cultural Harmonization NO! Contents Harmonization NO! •  LOCALIZATION INCREASING! •  GLOBALIZATION DECREASING! 5
  6. 6. Challenge to Nationhood Globalization of Culture Threatens National Sovereignty! United Nations Guarantees! 1.  Territorial Integrity! 2. Cultural Integrity! Cultural Content Gap We Need to Support! •  Local Stories! •  Local Faces! •  Local Voices ! •  Local Language! 6
  7. 7. Local -> Global Actor Current CBC Challenges Cutbacks to Classical Music Support! •  CBC Vancouver Orchestra Eliminated ! •  Suspend Production of Classical CDs! •  Ehnes Grammy 1st and Last! •  Radio 2 Classical only 10 AM – 3 PM! 7
  8. 8. Info Age Music Opportunities New Marketing for Classical Music! New Sales for Classical Music! Replace or Exceed Historic CBC Support! Need to Identify How to Promote Local Content! Promote Local Languages! Promote Local Culture! Promote Local Business! Expose Local Artists Globally! Monetize Music Use in New Ways! 8
  9. 9. Changing Entertainment Business 20th Century Model! •  Manufacturing and Selling Products! •  Supplier Centric! •  Controlled Distribution! 21sh Century Model! •  Monetizing Experiences! •  User Centric! •  Viral Distribution - P2P! •  Technically & Financially Necessary for TV/Film! Problem Not Unique to Canada Nordic Music! •  Danish! •  Finnish! •  Icelandic! •  Norwegian! •  Swedish! 9
  10. 10. Online Channel is Different Physical Distribution! •  Limited Shelf Space! •  Sheet Music! •  Recordings! •  Few Titles -> Most Consumption! Online Distribution! •  Unlimited Shelf Space! •  Many Titles -> Most Consumption! •  Long Tail Consumption Curve! Rise of Amateurism Home Recording Studios! Computer Notation Programs! •  Output is Digital File! MIDI! •  Imperfect But Easy and Universal! File-Sharing, P2P! •  Sampling! •  Remixing! •  Mashups! 10
  11. 11. Long Tail of Consumption Everything You Can’t Buy at the Local Mall, Where Shelf Space Limits Customer Choice! •  Back Catalog! •  Niche Audiences! •  Unusual Styles, Instrumentation! Total of Infrequently Accessed Content is Greater than Frequently Accessed Content! Long Tail Graph Power Law Curve! Yellow Portion is Long Tail! 11
  12. 12. Long Tail Book Sales Blue is [Nielson] Sales of Mall Stores! Red is Long Tail Sales of Online Store! Definition of Long Tail Key Factors! •  Cost of Inventory Storage! •  Cost of Distribution! When Costs are High, Only the Most Popular Products Can Be Sold! Example: Movie Rental Stores vs. NetFlix! •  Netflix finds that aggregate quot;unpopularquot; movies are rented more than popular movies! Cultural and political impacts! •  Minority Tastes are Catered to! •  Individuals Have Greater Choice! 12
  13. 13. But, How Can We Find Titles? Normal Search Engines Find Most Popular Titles First and Foremost! How Can We Search the Log Tail?! Communities of Interest! •  Sigs, Chats, BBs! Authorities! •  Professionals (Publications, Reviewers)! •  Academics! •  Peers! Contest Winners & Festivals! Automated Recommendations Niche Vox Populae ! Others Who Liked Your Choices Also Liked…! Automated Analysis of Music! 13
  14. 14. Subscription Video Roku Netflix Box $100 + $9/mth unlimited! •  aggregate “unpopular” movies are rented more then aggregate “popular” movies ! Subscription Audio Noank Model! 85% fees to Content Owners! China First! •  24 million University Students! •  $10/semster content fee ($20 annual)! •  = $480 million! North America & other BRIC soon! Count Consumption! 14
  15. 15. We Were Couch Potatoes Now We’re Interactive 15
  16. 16. Will We Be Fried Potatoes? Role of Music Centers Nordic Information Centres Have Greatly Increased Online Activities with Excellent Results for Local Record Companies, Promoters and Artists ! Canadian Music Centre Has Increased its Online Activities with Good Results and Could do More With Increased Support from Industry and its Members! 16
  17. 17. Key Issues How to Expose Audiences to Classical Music Content so as to Trigger them to Close Transactions?! •  Sell CDs! •  Sell Merchandise (Wolfgang’s Vault)! •  Subscription Service! •  Live Attractions! •  Advertising! The Future Is Not What it Used to Be A Student Said to Prof. Einstein: ”The Questions On This Year’s Exam are the Same as Last Year.”! Einstein Replied: “Ahh, But This Year, ! THE ANSWERS ARE DIFFERENT ”! 17
  18. 18. Classical Music Communities New Models of Distribution! Soundstreams! Toronto! 080522! Paul Hoffert! 18

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