The New Music Economy: Music 2.0 At Picnic 2008 Amsterdam
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Transcript of The New Music Economy: Music 2.0 At Picnic 2008 Amsterdam
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Gerd Leonhard Media Futurist
Music 2.0 -a new, web-native music business
Presentation at Picnic 2008 September 25, 2008 Amsterdam
www.mediafuturist.com
www.music20thebook.com
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Gerd Leonhard Media Futurist
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Gerd Leonhard Media Futurist
Source: Flickr hillarylmrore
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Gerd Leonhard Media Futurist
Music is now (again) a
Social Medium
Source: UniversalMcCann waves report
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Gerd Leonhard Media Futurist
Music 2.0: a networked, web-native, de-centralized Music Business.
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Gerd Leonhard Media Futurist
This is ... Not.
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Gerd Leonhard Media Futurist Goodbye ‘Copy = Money”The The Western Definition of Copyright as Sole Value of Music is dead
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Gerd Leonhard Media Futurist
http://flickr.com/photos/hollyleigh97/
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Gerd Leonhard Media Futurist
The future source of income is Getting Attention
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Gerd Leonhard Media Futurist
This is not a battle for getting people’s money but a battle for their Attention
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Gerd Leonhard Media Futurist
For Creators,Obscurity is a much greater threat than
so-called PiracySource: CEA
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Gerd Leonhard Media Futurist
A web-native music business model...?Based on flat-rate access first, then Copy
Based on Usage Rights, not (just) Copyright
Based many revenue streams selling-copies
Driven by Sharing, User-to-User
Driven by Syndication (Widgets!)
Decentralized
Powered by next-generation Advertising
Multi-platform access but mostly mobile!
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Gerd Leonhard Media Futurist
T h e r e s u l t o f t h i s e x p l o d i n gB r o a d b a n d C u l t u r e :
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Gerd Leonhard Media Futurist
Does strong copyright and strong protection really equal strong income?
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Gerd Leonhard Media Futurist Stop this?
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Gerd Leonhard Media Futurist
You can’t really ‘own’ the copy any more but
You can own the Context, the Meaning, the Relevance, the Experience, the Embodiment, the Timing...
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Gerd Leonhard Media Futurist
Asking the ISPs to deep-
package inspect their traffic
and then enforce the rules of
an industry that has utterly
failed to adapt their business
model, is asking for
Censorship
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www.mediafuturist.com
Wanting to disconnect people because they
download music & other ‘content’ is wrong.
Criminalizing 90% of the population because of
a lack of a new model to serve them is wrong.
Exploiting market weaknesses to withhold music
licenses is wrong, and so is ruthlessly
capitalizing on one’s market position
Using copyright as an excuse to extort the users
and the organizations that serve them is wrong
Let’s face it: this is wrong
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www.mediafuturist.com
Instead of Control, Trust is the key to success in a Networked World
http://www.guardian.co.uk/media/2008/apr/21/netmusic
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Gerd Leonhard Media Futurist
This is a very serious change
Copy Economy
Access / Usage / Share
Economy
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Gerd Leonhard Media Futurist
If you insert Friction you insert Defeat
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Gerd Leonhard Media Futurist
Goodbye ‘Consumers’ as we knew them
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Gerd Leonhard Media Futurist
Welcome: The digital Music Flat Rate
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Gerd Leonhard Media Futurist
Old ‘paying logic’
http://www.repmanblog.com/photos/uncategorized/48750_a.jpg
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Gerd Leonhard Media Futurist New paying logic
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Gerd Leonhard Media Futurist
Music
Used to be
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Gerd Leonhard Media Futurist
Music
...is & will be
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Gerd Leonhard Media Futurist
Our Future as Creatives: Attention-based Income explodes while Copy-based income declines *for now
0
2.5
5.0
7.5
10.0
WasIs
SoonNear Future
Mid-term Future
Copy Based RevenuesAttention Based Revenues
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Gerd Leonhard Media Futurist
And a flat rate is just the beginning!
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Gerd Leonhard Media Futurist
And once 4 Billion phones are connected
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Gerd Leonhard Media Futurist
So why isn’t Google licensed for music yet?
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Gerd Leonhard Media Futurist
Let’s start sharing in the new revenues!
Start giving PERMISSION
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Gerd Leonhard Media Futurist
Now,we must ‘sell’ things
that can’t be copied
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Gerd Leonhard Media Futurist
The industry has to offer a real, feasible license
to the networks, and enable a Flat Rate that
legalizes the ubiquitous use of music.
If there is no voluntary collective we may
need to enforce its creation.
If the ISPs are forced to unplug people maybe
we should unplug the industry, too?
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Gerd Leonhard Media Futurist
Yes, there are many issues, but:
The evils of ‘too open’ or ‘too much
freedom’ will always pale compared
to the evils of closed, central,
controlled and authoritarian system
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Gerd Leonhard Media Futurist
Let me tell you a story about China, Google and Music
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Gerd Leonhard Media Futurist
SHANGHAI, CHINA, August 2008:
Google has launched a free music search service in China that will give users access to free downloads of songs, while capturing advertising revenue for music providers in a market already infamous with piracy.
The service poses a challenge to Baidu.com, the #1 search engine in China, along with other Chinese search engines, faced lawsuits charging that it facilitates copyright violations through downloads of unlicensed music.
Google said its service would initially let Internet users search tens of thousands of Chinese songs on its website and download them Top100.cn... Advertising revenue from the service will be shared among Top100.cn and Google’s music partners aiding in the search.
Google Music in China
Source: Reuters / Information Week
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Gerd Leonhard Media Futurist
“The Internet industry should by no means stand in the opposite camp against the music industry. Google always believes profoundly that mutual interest, rather than monopoly, is the key to sustainable growth,” Google China president Kai-fu Lee said in a statement
A Creative Economy based on ‘Mutual Interest’ ?
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Gerd Leonhard Media Futurist
Establish open, access & usage - based content licenses
Very large, engaged, always-on audiencesLow-cost, ubiquitous, mashed-access, mobile broadbandTelecoms that will become content & service pipesLarge Brands (and their agencies) that must reinvent their marketing and advertising strategiesPremium Content as well as UGC unprotected, unlimitedTrusted opt-ins and flexible privacy provisions
A Recipe...?
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Gerd Leonhard Media Futurist
The Model
Find the many
Make it ‘feel like free’Charge the few
Up-sell the rest!
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Gerd Leonhard Media Futurist
Kevin Kelly: The key is to offer valuable intangibles that can not be reproduced at zero cost, and will thus be paid for:
1. Immediacy - priority access, immediate delivery 2. Personalization - tailored just for you 3. Interpretation - support and guidance 4. Authenticity - be sure it is the real thing? 5. Accessibility - whereever, whenever 6. Embodiment & Experience 7. Patronage - "paying simply because it feels good" 8. Findability & Curation
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Gerd Leonhard Media Futurist
"When The winds of change are blowing, some people are building shelters, and others are building windmills." Chinese Proverb
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Gerd Leonhard Media Futurist
Gerd Leonhard
www.mediafuturist.com
www.music20book.com
Thanks for listening!