Music 2.0: a web native Music Industry, by Gerd Leonhard

Slide 1: By Gerd Leonhard www.mediafuturist.com gerd@mediafuturist.com www.mediafuturist.com www.music20book.com Music 2.0: Formulating a Web-Native Music Industry Wednesday, July 2, 2008 1

Slide 2: This has been the music industry’s response www.mediafuturist.com to almost all new innovations and changes: ...usually with detrimental consequences for the Artists and Writers Wednesday, July 2, 2008 2

Slide 3: So now we are here www.mediafuturist.com Source: Flickr Wednesday, July 2, 2008 3

Slide 4: And who has steered this ship? www.mediafuturist.com Wednesday, July 2, 2008 4

Slide 5: www.mediafuturist.com Really? Source: NYT Wednesday, July 2, 2008 5

Slide 6: www.mediafuturist.com The Abject Failure of Music Protection & Control Trying to control digital distribution via technical protection measures (DRM / TPM) has failed miserably, and trying to control digital distribution via the Networks will fail, too. Wednesday, July 2, 2008 6

Slide 7: www.mediafuturist.com A message to IFPI BPI RIAA CRIA: Say Goodbye to the World of Scarcity Source: The LongTail (Chris Anderson) Wednesday, July 2, 2008 7

Slide 8: The End of Scarcity changes everything www.mediafuturist.com Wednesday, July 2, 2008 8

Slide 9: www.mediafuturist.com What do Amazon Google Nokia Sirius/XM Wordpress Linux Skype Wikipedia Craigslist Apple Facebook Last.fm Tivo Netflix Easyjet .... have in common? DISRUPTION Disruption is good. Disruption is inevitable. Disruption is where we must to put our money. Disruption in the Music Industry = the Creators and the Users are taking back Control. Wednesday, July 2, 2008 9

Slide 10: www.mediafuturist.com Source: Flickr A tidal wave of Change Wednesday, July 2, 2008 10

Slide 11: But this is NOT about Technology www.mediafuturist.com C u l t u re Mark Andreesen Wednesday, July 2, 2008 11

Slide 12: Now, we need a www.mediafuturist.com networked, web-native Music (not Record!) Business. Wednesday, July 2, 2008 12

Slide 13: Music is a www.mediafuturist.com Social Medium Wednesday, July 2, 2008 13

Slide 14: www.mediafuturist.com Without sharing, the music business is dead "In the past you were what you owned. Now you are what you share." Charles Leadbeater – We Think Wednesday, July 2, 2008 14

Slide 15: www.mediafuturist.com Today’s Marketing Keywords: Co-Creation. Sharing. Communing. Wednesday, July 2, 2008 15

Slide 16: 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 Wednesday, July 2, 2008 16

Slide 17: Goodbye ‘Control’ Obsession www.mediafuturist.com Wednesday, July 2, 2008 17

Slide 18: Goodbye ‘Copy’ as primary value www.mediafuturist.com Wednesday, July 2, 2008 18

Slide 19: www.mediafuturist.com Wednesday, July 2, 2008 19

Slide 20: Let’s face it: this is wrong www.mediafuturist.com Wanting to disconnect people because they download music 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 Wednesday, July 2, 2008 20

Slide 21: Goodbye ‘Consumer’ as we know them www.mediafuturist.com Source: Web tbd Wednesday, July 2, 2008 21

Slide 22: www.mediafuturist.com The People Welcome to formerly known as Consumers Wednesday, July 2, 2008 22

Slide 23: So what would a web-native model look like? www.mediafuturist.com Respect for the Creators and the Users, first and foremost Based on providing Access first - and then sell a Copy Based on Usage Rights, not (just) Copyright Based on dozens of revenue streams, not solely ‘selling copies’ Driven by fully legalized, open Sharing Driven by Syndication (i.e. the Users marketing what they like) Decentralized and networked Powered partly by Advertising 2.0 Multi-platform access but mostly mobile Bundled in other services, but basic access ‘feels like free’ Open and transparent business practices Wednesday, July 2, 2008 23

Slide 24: Old tollbooth logic www.mediafuturist.com http://www.repmanblog.com/photos/uncategorized/48750_a.jpg Wednesday, July 2, 2008 24

Slide 25: New tollbooth logic www.mediafuturist.com Wednesday, July 2, 2008 25

Slide 26: www.mediafuturist.com For the creators For the Users Feels Like Free Wednesday, July 2, 2008 26

Slide 27: And a flat rate is just the beginning! www.mediafuturist.com Wednesday, July 2, 2008 27

Slide 28: www.mediafuturist.com The Digital Music Flat Rate is inevitable ‘Follow’ me: Twitter: gleonhard + dailywisdoms ~1910 Facebook: Gerd Leonhard + = + = ~2009? Wednesday, July 2, 2008 28

Slide 29: www.mediafuturist.com Search IS Media -what better place to offer your music? Wednesday, July 2, 2008 29

Slide 30: www.mediafuturist.com So why isn’t Google licensed for music yet? Wednesday, July 2, 2008 30

Slide 31: Let’s start sharing in those revenues! www.mediafuturist.com Start giving PERMISSION Wednesday, July 2, 2008 31

Slide 32: And get ‘paid with attention’ www.mediafuturist.com Wednesday, July 2, 2008 32

Slide 33: The Future of Content *Inspired by Kevin Kelly www.mediafuturist.com Copies of digital content will Feel Like Free But: Context is not The Experience is not Packaging [Alt Out] is not Curation is not Wednesday, July 2, 2008 33

Slide 34: www.mediafuturist.com 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 - wherever, whenever 6. Embodiment & Experience 7. Patronage - "paying simply because it feels good" 8. Findability & Curation Read: http://www.kk.org/thetechnium/archives/2008/01/better_than_fre.php Wednesday, July 2, 2008 34

Slide 35: www.mediafuturist.com Wednesday, July 2, 2008 35

Slide 36: Welcome to the new record labels: Blogs www.mediafuturist.com Sifting, collating, connecting... curating - the new A&R Wednesday, July 2, 2008 36

Slide 37: www.mediafuturist.com Welcome: The digital Music Flat Rate Wednesday, July 2, 2008 37

Slide 38: When? www.mediafuturist.com Wednesday, July 2, 2008 38

Slide 39: www.mediafuturist.com "When The winds of change are blowing, some people are building shelters, and others are building windmills." Chinese Proverb Wednesday, July 2, 2008 39

Slide 40: Gerd Leonhard www.mediafuturist.com gerd@mediafuturist.com www.mediafuturist.com www.music20book.com Thanks for reading ~ Download my new book! Wednesday, July 2, 2008 40