Gerd Leonhard International Economic Forum St Petersburg 2008 Future Of Copyright

www.mediafuturist.com

Gerd Leonhard

[email protected]


The Future of Media & Copyright - and what it could mean for Russia


Digital Media Sharing:

We are only at the Beginning!

The rest of this Iceberg will emerge much quicker than

you may think

www.mediafuturist.com Remember this?It really didn’t take very long!


Cul tur e

www.mediafuturist.com We are connected. We share. We make ‘content’ too. We are Media. We pay when we have Control and Choice.


Giving access to

Making available

Getting Attention for

Sharing


Can you engage when you protect too much?

Can you get Attention and Trust (and the

Resulting Revenues) when you force the

conversation?

Can you make money from copyrighted

works that effectively can’t be legally

used for anything?

www.mediafuturist.com A few things to rememberIt’s not about us: it’s about our Future, our Kids - the Digital Natives

The tradition of using ‘Total Control over Content’ as a main

instrument of Economic Growth in the Media Sectors is no longer

feasible or desirable in a networked and digitized world

With, very soon, 4 Billion mobile devices connect to the Internet

we will clearly not suceed by adding new layers of control and

enforcement or by putting friction back into a liquid system

Note: this is a great opportunity for Russia: develop next-generation business models for ‘Content’ & Media


Control versus User Empowerment - who wins?


We have it ‘upside down’ if we intend to generate new revenues with more Control

C o p y r i g h t


This needs to be widened....

C o p y r i g h t

A c c e s s R i g h tUsage Right

P E R M I S S I O N


Until now, equaling media content and IP rights with real, physical PROPERTY RIGHTS

seemed logical because of:

Scarcity and high cost of frequencies, distribution, transport, shelf space… i.e. physical limitations Control over most media distribution was feasible Consumers could only ‘take it or leave it’ More protection & control meant, mostly, more income (but only for the industry, really)

www.mediafuturist.com But now....

www.mediafuturist.com Fueled by...

Cheap and very powerful mobile

devices

Wireless Broadband Explosion

Drastic Increase inUser Empowerment and Engagement (UGC, Social Media)

New economies coming online very

quickly


No more scarcity

www.mediafuturist.com ...now we need to think again

150% increase of P2P file-sharing of music (07/08)

USB / hard-drive swapping exploding

Music DRM has proven useless for protection purposes, and detrimental to user adoption (only 2% of users engaged!)

Content sharing on social networks is #1 activity, 820M people!

In Music, there are now 100s of new, unlicensed Streaming-On-Demand services available (the next radio)

95% of all new media ventures deemed ‘un-licensable’ under current provisions and schemes

In France, UK, Germany: desperate measures to get ISPs to fix this problem - but do we need to institute a digital police-state to enforce a broken business model?


In Russia and the BRIC countries, the traditional 100% Copyright-centric business models probably won’t work

Pay-per-unit or per-view is not economically feasibleUsers are ‘leapfrogging technology’ (e.g. from tape to

MP3s on mobile phones)Make-it-scarce and enforcement model will incentivize

and even reward(!) users that circumvent itTechnological protection measures are really not effectiveWireless broadband on cheap mobile devices will

make today’s problems look like child’s play


Media & Content is

now in the Network

- and so is the new

money!


Particularly for Russia, I would propose an alternate approach to the traditional copyright enforcement routine:

Access & Usage RightsFlat Rates & Bundles

and other new Licenses based on the Emerging Cultural Practices

(as we did with Radio!)


In detail• License access to Networks, not copies (that will be

the upsell!)

• Like Radio, Digital Music must be blanked-licensed for online use (followed by video)

• Remuneration needs to be based on overall revenue sharing, not (just) copies

• Note: Real property can only be ‘lend’ or licensed once, but IP / Content / Media access licensing is unlimited

• Ad-supported models will propel this development, but are not the only method of monetization


For Music, this is already happening:

Google in China: search licensed for music

TDC in DK: internet access bundled with music

Nokia Comes with Music

Last.fm / CBS free listening on-demand


Thanks for your time!Gerd Leonhard

[email protected]


Download this pdf later today at www.mediafuturist.com

Gerd Leonhard International Economic Forum St Petersburg 2008 Future Of Copyright

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