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the genesis of the decline and fall of selling physical media as a core business...

or redefining the business you think you are in


information wants to be free

Gene Keenan
gene.keenan@isobar.com
June, 2008
First:

What the big media owners think of this idea
"It is ridiculous to believe that you can give product
away for free and be more successful.
I mean it defies the laws of nature."
- Dan Glickman - Chairman and CEO of
Motion Pictures Association of America
Let’s test this
Let’s look at a case study
Who were the Grateful Dead?
what made them so special?
 (from a media perspective)
Free Music
The band allowed the recording and
 sharing of tapes of their concerts
1984

Dateline: October 27, 1984 | The first day tapers were officially allowed to bring their gear in and record Grateful
Dead shows, in a special section set aside just for them.
2,200
    2350
 Number of shows recorded out of total played
Effect on the audience/band
        Audience


Tape Trading   Community
Effect on the audience/band
        Audience                   Band

                                850 sold out
Tape Trading   Community   =
                               shows in a row
Effect on the audience/band
         Audience                            Band

                                        850 sold out
Tape Trading   Community       =
                                       shows in a row

                       Net Effect

Music can be free and artists can still thrive financially.
Band Insight
Live Entertainment Business
How it worked: Media Perspective
Media


          The Product              Media

        Grateful Dead Live       Tape Trading
            Concerts         of those live shows




                Circle Of Gratitude
How it worked: Media Perspective
Media
 Spark

           The Product              Media

         Grateful Dead Live       Tape Trading
             Concerts         of those live shows




                 Circle Of Gratitude
How it worked: Fan Perspsective
                                                                                      Many to Many
Taper makes original recording    A taping tree is how tapes were distributed         In this model 6,000 people got tapes that were a couple
                                  in mass through an organized structure. The
and creates seed tapes to share                                                       of generations removed from the master. Where you
                                   Master would be the organizer of the tree
       with a taping tree                  and provide the seed tapes                 were on the tree was based on the quality of your
                                                                                      dubbing equipment and willingness to make copies



                                                                seed or master tape
                                                                 6 seed tapes made
How it worked: Fan Perspsective
                                                                                                              Many to Many
   Taper makes original recording           A taping tree is how tapes were distributed                       In this model 6,000 people got tapes that were a couple
                                            in mass through an organized structure. The
   and creates seed tapes to share                                                                            of generations removed from the master. Where you
                                             Master would be the organizer of the tree
          with a taping tree                         and provide the seed tapes                               were on the tree was based on the quality of your
                                                                                                              dubbing equipment and willingness to make copies



                                                                          seed or master tape
                                                                           6 seed tapes made

10 copies made from seed   10 copies made from seed      10 copies made from seed         10 copies made from seed    10 copies made from seed    10 copies made from seed
          tape                       tape                          tape                             tape                        tape                        tape
How it worked: Fan Perspsective
                                                                                                                       Many to Many
   Taper makes original recording                 A taping tree is how tapes were distributed                          In this model 6,000 people got tapes that were a couple
                                                  in mass through an organized structure. The
   and creates seed tapes to share                                                                                     of generations removed from the master. Where you
                                                   Master would be the organizer of the tree
          with a taping tree                               and provide the seed tapes                                  were on the tree was based on the quality of your
                                                                                                                       dubbing equipment and willingness to make copies



                                                                                 seed or master tape
                                                                                  6 seed tapes made

10 copies made from seed   10 copies made from seed            10 copies made from seed         10 copies made from seed       10 copies made from seed    10 copies made from seed
          tape                       tape                                tape                             tape                           tape                        tape

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made
How it worked: Fan Perspsective


                 6,000
                                                                                                                       Many to Many
   Taper makes original recording                 A taping tree is how tapes were distributed                          In this model 6,000 people got tapes that were a couple
                                                  in mass through an organized structure. The
   and creates seed tapes to share                                                                                     of generations removed from the master. Where you
                                                   Master would be the organizer of the tree
          with a taping tree                               and provide the seed tapes                                  were on the tree was based on the quality of your
                                                                                                                       dubbing equipment and willingness to make copies



                                                                                 seed or master tape
                                                                                  6 seed tapes made

10 copies made from seed   10 copies made from seed            10 copies made from seed         10 copies made from seed       10 copies made from seed    10 copies made from seed
          tape                       tape                                tape                             tape                           tape                        tape

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made




                    4 Gen
      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made

      10 copies made             10 copies made                        10 copies made                 10 copies made                  10 copies made              10 copies made
A typical Grateful Dead fan tape collection
Tape trading of live shows acted as
 promotional content to get fans
additional
  gears
User Generated Content: Tracking Shows
A listing of every show ever played. If you
knew three songs in a row you could find      Fan reviews of every single Grateful Dead concert
                  the show




      10                                                3
   VOLUMES                                           VOLUMES
Status of Live
 Music Today
Right: Taper section at the Teluride
   Bluegrass Festival, June 2007
Live Music Rules!

                       Recorded music
                     (owned media) is now
                    used as advertising by
                     many bands who make
                    their money through live
                          performances
Live Music Rules!

                       Recorded music
                     (owned media) is now
                    used as advertising by
                     many bands who make
                    their money through live
                          performances
Internetarchive.org/details/etree




         A free live music archive
But What Happened To Tape
         Trading?




  It went digital. Now trading is done through
      the use of FTP sites and Bittorrents
one more thing....
The Dead Legacy
What’s the connection now between the
Grateful Dead and internet/digital rights?

  John Perry Barlow

    Lyricist For
 The Grateful Dead
What’s the connection now between the
Grateful Dead and internet/digital rights?

                                       Electronic Frontier
  John Perry Barlow
                                          Foundation

    Lyricist For                         Co-Founder:
 The Grateful Dead                          1990
                        The Electronic Frontier Foundation (EFF) is
                        an international non-profit advocacy and legal
                        organization based in the United States with the
                        stated purpose of being dedicated to preserving
                        the right to freedom of speech, such as
                        protected by the First Amendment to the United
                        States Constitution, in the context of today's
                        digital age (see also digital rights).
bye
ODDLY ENOUGH, THE Dead’s influence on the business
                                                               world may turn out to be a significant part of its legacy.
                                                               Without intending to—while intending, in fact, to do just
                                                               the opposite—the band pioneered ideas and
                                                               practices that were subsequently embraced by
                                                               corporate America. One was to focus intensely on its
                                                               most loyal fans. It established a telephone hotline to alert
                                                               them to its touring schedule ahead of any public
                                                               announcement, reserved for them some of the best seats in
                                                               the house, and capped the price of tickets, which the band
                                                               distributed through its own mail-order house. If you lived
                                                               in New York and wanted to see a show in Seattle, you
                                                               didn’t have to travel there to get tickets—and you could get
                                                               really good tickets, without even camping out. “The Dead
                                                               were masters of creating and delivering superior customer
                                                               value,” Barry Barnes, a business professor at the H. Wayne
                                                               Huizenga School of Business and Entrepreneurship at
                                                               Nova Southeastern University, in Florida, told me.
                                                               Treating customers well may sound like common sense.
                                                               But it represented a break from the top-down ethos of
http://www.theatlantic.com/doc/201003/grateful-dead-archives   many organizations in the 1960s and ’70s. Only in the
                                                               1980s, faced with competition from Japan, did American
                                                               CEOs and management theorists widely adopt a customer-
                                                               first orientation.
Earned Media - Grateful Dead

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Earned Media - Grateful Dead

  • 1. the genesis of the decline and fall of selling physical media as a core business... or redefining the business you think you are in information wants to be free Gene Keenan gene.keenan@isobar.com June, 2008
  • 2. First: What the big media owners think of this idea
  • 3. "It is ridiculous to believe that you can give product away for free and be more successful. I mean it defies the laws of nature." - Dan Glickman - Chairman and CEO of Motion Pictures Association of America
  • 5. Let’s look at a case study
  • 6.
  • 7. Who were the Grateful Dead?
  • 8. what made them so special? (from a media perspective)
  • 10. The band allowed the recording and sharing of tapes of their concerts
  • 11. 1984 Dateline: October 27, 1984 | The first day tapers were officially allowed to bring their gear in and record Grateful Dead shows, in a special section set aside just for them.
  • 12. 2,200 2350 Number of shows recorded out of total played
  • 13. Effect on the audience/band Audience Tape Trading Community
  • 14. Effect on the audience/band Audience Band 850 sold out Tape Trading Community = shows in a row
  • 15. Effect on the audience/band Audience Band 850 sold out Tape Trading Community = shows in a row Net Effect Music can be free and artists can still thrive financially.
  • 18. How it worked: Media Perspective Media The Product Media Grateful Dead Live Tape Trading Concerts of those live shows Circle Of Gratitude
  • 19. How it worked: Media Perspective Media Spark The Product Media Grateful Dead Live Tape Trading Concerts of those live shows Circle Of Gratitude
  • 20. How it worked: Fan Perspsective Many to Many Taper makes original recording A taping tree is how tapes were distributed In this model 6,000 people got tapes that were a couple in mass through an organized structure. The and creates seed tapes to share of generations removed from the master. Where you Master would be the organizer of the tree with a taping tree and provide the seed tapes were on the tree was based on the quality of your dubbing equipment and willingness to make copies seed or master tape 6 seed tapes made
  • 21. How it worked: Fan Perspsective Many to Many Taper makes original recording A taping tree is how tapes were distributed In this model 6,000 people got tapes that were a couple in mass through an organized structure. The and creates seed tapes to share of generations removed from the master. Where you Master would be the organizer of the tree with a taping tree and provide the seed tapes were on the tree was based on the quality of your dubbing equipment and willingness to make copies seed or master tape 6 seed tapes made 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed tape tape tape tape tape tape
  • 22. How it worked: Fan Perspsective Many to Many Taper makes original recording A taping tree is how tapes were distributed In this model 6,000 people got tapes that were a couple in mass through an organized structure. The and creates seed tapes to share of generations removed from the master. Where you Master would be the organizer of the tree with a taping tree and provide the seed tapes were on the tree was based on the quality of your dubbing equipment and willingness to make copies seed or master tape 6 seed tapes made 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed tape tape tape tape tape tape 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made
  • 23. How it worked: Fan Perspsective 6,000 Many to Many Taper makes original recording A taping tree is how tapes were distributed In this model 6,000 people got tapes that were a couple in mass through an organized structure. The and creates seed tapes to share of generations removed from the master. Where you Master would be the organizer of the tree with a taping tree and provide the seed tapes were on the tree was based on the quality of your dubbing equipment and willingness to make copies seed or master tape 6 seed tapes made 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed 10 copies made from seed tape tape tape tape tape tape 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 4 Gen 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made 10 copies made
  • 24. A typical Grateful Dead fan tape collection
  • 25. Tape trading of live shows acted as promotional content to get fans
  • 27. User Generated Content: Tracking Shows A listing of every show ever played. If you knew three songs in a row you could find Fan reviews of every single Grateful Dead concert the show 10 3 VOLUMES VOLUMES
  • 28. Status of Live Music Today Right: Taper section at the Teluride Bluegrass Festival, June 2007
  • 29. Live Music Rules! Recorded music (owned media) is now used as advertising by many bands who make their money through live performances
  • 30. Live Music Rules! Recorded music (owned media) is now used as advertising by many bands who make their money through live performances
  • 31. Internetarchive.org/details/etree A free live music archive
  • 32. But What Happened To Tape Trading? It went digital. Now trading is done through the use of FTP sites and Bittorrents
  • 33.
  • 34.
  • 37. What’s the connection now between the Grateful Dead and internet/digital rights? John Perry Barlow Lyricist For The Grateful Dead
  • 38. What’s the connection now between the Grateful Dead and internet/digital rights? Electronic Frontier John Perry Barlow Foundation Lyricist For Co-Founder: The Grateful Dead 1990 The Electronic Frontier Foundation (EFF) is an international non-profit advocacy and legal organization based in the United States with the stated purpose of being dedicated to preserving the right to freedom of speech, such as protected by the First Amendment to the United States Constitution, in the context of today's digital age (see also digital rights).
  • 39. bye
  • 40. ODDLY ENOUGH, THE Dead’s influence on the business world may turn out to be a significant part of its legacy. Without intending to—while intending, in fact, to do just the opposite—the band pioneered ideas and practices that were subsequently embraced by corporate America. One was to focus intensely on its most loyal fans. It established a telephone hotline to alert them to its touring schedule ahead of any public announcement, reserved for them some of the best seats in the house, and capped the price of tickets, which the band distributed through its own mail-order house. If you lived in New York and wanted to see a show in Seattle, you didn’t have to travel there to get tickets—and you could get really good tickets, without even camping out. “The Dead were masters of creating and delivering superior customer value,” Barry Barnes, a business professor at the H. Wayne Huizenga School of Business and Entrepreneurship at Nova Southeastern University, in Florida, told me. Treating customers well may sound like common sense. But it represented a break from the top-down ethos of http://www.theatlantic.com/doc/201003/grateful-dead-archives many organizations in the 1960s and ’70s. Only in the 1980s, faced with competition from Japan, did American CEOs and management theorists widely adopt a customer- first orientation.

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