I had the great pleasure to speak at the Future As Music (FAM) conference in Madrid / Spain, today. This event was organized by AIE (the Artists and Performers Society of Spain) and I was delighted to present alongside one of my favorite colleagues, famed mobilist and mobile content guru Tomi Ahonen. My talk and presentation was on the juicy topic of "The Future of Music & Digital Content: Mobile, Connected, Social, Open... and Paid?" and included comments on: 1) why it makes no sense to disconnect fans from the Internet and expect them to then buy more 'legal' music 2) why the music industry must adapt to the new behaviors of 'the people formerly known as consumers' asap 3) why we have a 'digital toll-booth challenge' (see my column on Spotify) and how we need to structure 'music sales' going forward 4) why music is first an experience and a service, and only then a product (and how the industry can monetize this shift) 5) where the New Generatives will come from 6) why a collective digital music license makes sense - and much more. Here is the slideshow, below (you can download the PDF via slideshare, as well). Enjoy and spread the word!

1. The Future of Music & Digital
Content: Mobile, Connected,
Social, Open... and Paid?
by Gerd Leonhard
www.mediafuturist.com
twitter.com/gleonhard

2. We have a problem...

3. Disconnect fans to... sell more Music???

4. Source: Slideshare

5. So what are those new behaviors?
• Access now comes before ownership
• All-you-can-eat and unlimited offers, flat-fees
& bundles are critical to success
• ‘Feels Like Free’ is a crucial step to conversion
• Paying with attention (i.e. advertising) is ok!
• The Users are gaining power, all the time
Welcome to the People
formerly known as Consumers!

6. The Toll-Booth Challenge: how to
make $$ with Access rather than Copies
Source: istockphoto

7. Music
is first a Service & an
Experience - and only
then (maybe) a Product.

8. Like it or not:Connected people ‘consume’ differently
Time to accept, adapt and move forward!
Access tru mps Copy
Sh aring is the Key Driver

9. Copies don’t equal $$ anymore
Source: kk.org

10. From Physical to Digital
From Fixed to Mobile
From Top-Down to Social
From Consumers to Users

11. From Push to Pull

12. Soon:
The New
Premium
The new
Normal

13. The irreversible shift in Content & Media
Co
munity
omnterf Con
nv
en
C I ien
ace texte c
Content Timeliness
Curation
Content

14. Time to focus on the New Generatives
Content
Context
Curation 5%
Timeliness 20%
Embodiment / Packaging
15%
Relevance
Others
15%
15%
Content / Copy
10% 20%
100%

15. Music Commerce 2.0:
don’t try to sell what is
Ubiquitous - sell what is
Scarce

16. Welcome to another pricing logic
Price per Song Numbers of Users
100
75
50
25
0
Was Will be

17. New revenues from new collaborations
Telecom
TV
Advertising
Internet Mobile
Content

18. Hybrid Models in many variations

19. Personal, digital consumer ‘Piracy’ is
simply just Market Failure
Source: CEA.org

21. This will not work

22. We have been here before
D !
S E
E N
L I C

23. A Public License
+ Build-in Revenues
+ Proportional Distribution

24. Many other New Generatives
Community Premium Services Permission
High Definition & Premium Media
Mobile Device Applications & Software
Live-Concerts, Web-Casts, Virtual Shows...
Flat Rates, Bundles, Revenue-Sharing
A new and very lucrative Ecosystem can emerge on-top of the flat-rate

25. We don’t pay to eat all the food... we pay for access

26. Why this is good for the Creators
Attention turns automatically into $$
Distribution is available to everyone, by default
Many up-selling options will emerge
Direct market access is included
Marketing costs will be greatly reduced

27. Let’s change this film

28. The Music Industry needs to switch to
Open
Open licenses
Open innovation
Open distribution
Open competition
Open partnerships
Open technologies
Open data standards

29. Not Control and Protection but
Engagement and Conversion

30. The rising tide floats all boats:
Permission, Collaboration and $-Sharing is key

31. So why is there still so little revenue
from Youtube, Myspace, Facebook...?
• Advertisers are always 2-3 years behind
• Lack of permission for premium and legal
content slows adoption
• Lack of public license has deterred new
investors, and killed many startus
• Mobile broadband and smart mobile
devices are just now starting to take off

32. Every large audience can be monetized

33. Huge opportunities in curation,
filtering, meaningful aggregation
Source: Clay Shirky

34. versus

35. Free gets you to
a place where
you can ask to
get paid.
Quote by Fred Wilson, Union Square Ventures www.avc.com

36. Free to paid: examples

37. I pay - You pay - 3rd party pays

38. Why I have spend $1000+ on iStockphoto
• Good quality images
• Finding the right photo is quick and easy
• The rights (licenses) are cleared
• The price is right (well... mostly)
• I don’t pay just for the content - I
pay for ease of use, peace of mind,
the interface, service & curation...!

39. Content<>Cloud<>$

40. New ways to package

41. New ways to ‘sell’

42. Virtual concerts and venues

43. Brands
Music Agencies
Advertisers
Industry Media
Legislation
Government
Telecom Regulation
Google China President Kai Fu Lee:
“Mutual Interest, rather than Monopoly,
is the key to sustainable growth”

44. Summary

45. My Music 2.0 Book
www.music20thebook.com
(Lulu, print)
www.payingwithattention.com
(free PDF)
www.musicfutures.com
(freee mobile version)

46. Thanks for your time
email me at gerd@mediafuturist.com
twitter.com/gleonhard
facebook: gleonhard
more presentations at
www.mediafuturist.com