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The Future of Music: Mobile,
 Video, Social, and...Paid?
          by Gerd Leonhard




             www.mediafuturist.com
            www.twitter.com/gleonhard
IFPI
What’s important *in this order

         Talent & Merit
 Building an Audience
  Getting Recognition
   Generating Income
Control = Money
Connect with Fans, Offer Value,
 Give Reason to Buy = Money
    Control ≠ Money
Does Protection really make Money...?
Music is already in the Cloud




300+ ways to share Music!
Tomorrow


    Cheap, ubiquitous, mobile, social

         Connectivity

 Today
A connected world is a different world

                 New Behaviors
           New Standards
         New Social Contracts
New Ways of Remuneration
                                         Ars Electronica 2008
Copy Economy




Access | Usage |
‘Cloud’ Economy
The Future of Music ‘Consumption’
It’s all about this, first (and then... to own!)
The Toll-Booth Challenge
how to monetize access rather than copies




                                   Source: istockphoto
Copy Economy




               License
Access Economy
A collective, compulsory blanket
license for Music on the Internet
Hat tip to Jim Griffin


• Standardized, public licensing terms *
• Transparent system of how income is
  distributed (*initially by country, or region)
• One-stop licenses for all rights, collectively
• No differentiation between streaming or
  downloading (instead, it’s all just ‘use’)
• License fees per user / month, or a
  percentage of revenues
• License fees can generated in many localized
  variations (“I pay, you pay, they pay...”)
We have been here before



                           D !
                    S E
           EN
   L I   C
Just imagine:
If 900 Million people could generate only £ 10
  per year / per person, £ 9 Billion would be
            available for paying artists.
                        ••••
    If a blanket license for digital music was
 available, the license fees per user could be
     entirely funded by advertisers, brands,
      telecoms, device makers and others!
Hat tip to Jim Griffin




per week
Could Advertising help to pay for Music?
Advertising will continue to fund a lot of ‘free’ content
Because Data is the new Oil

            $1 Trillion
Hat tip to Shelly Palmer




  Paid Content
                             I pay
                           You pay
                           They pay
                   Free Content
I pay, you pay, they pay   *Inspired by Shelly Palmer




Subscriptions
                                       Micro-Payments
 Bundles

Applications                         Social Payments

  Flat Rates                           Telcos & ISPs

 Advertisers
                                       Device Makers

    Taxes
                                           Patronage
Music 2.0: the pricing logic flips
      Price         Users
100



 75



 50



 25



  0
              Was              Will be
People pay when they see value, when
 the price is right, and when it’s easy
Free + + +   ++   +
This is the new model




 Acceptance of new Reality
    Permission / License
Fair Collection & Distribution
 Develop New Generatives
The other 3 Billion
(O3B) are coming
Governments    Telecoms




     Authors & Creators               Search Engines




        Advertisers                        Publishers




                                Consumers
We were able to sell copies ‘on our own’, but
                Device Makers

    we can’t ‘Sell Access’ on our own!
Music 2.0: the inevitable Shift to Open
         Open licenses
        Open innovation
        Open distribution
       Open competition
       Open partnerships
       Open technologies
      Open data standards
The 3 most important tools for success

                        Hat tip to Mike Mesnick / Techdirt
Magnetism = Money
Summary


  License
Control ≠ Money
Thanks for your attention!
 email me at gerd@mediafuturist.com
    twitter.com/gleonhard
     facebook: gleonhard

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The Future of Music: mobile, social... paid?

  • 1. The Future of Music: Mobile, Video, Social, and...Paid? by Gerd Leonhard www.mediafuturist.com www.twitter.com/gleonhard
  • 3. What’s important *in this order Talent & Merit Building an Audience Getting Recognition Generating Income
  • 5. Connect with Fans, Offer Value, Give Reason to Buy = Money Control ≠ Money
  • 6. Does Protection really make Money...?
  • 7. Music is already in the Cloud 300+ ways to share Music!
  • 8.
  • 9. Tomorrow Cheap, ubiquitous, mobile, social Connectivity Today
  • 10. A connected world is a different world New Behaviors New Standards New Social Contracts New Ways of Remuneration Ars Electronica 2008
  • 11. Copy Economy Access | Usage | ‘Cloud’ Economy
  • 12. The Future of Music ‘Consumption’
  • 13. It’s all about this, first (and then... to own!)
  • 14. The Toll-Booth Challenge how to monetize access rather than copies Source: istockphoto
  • 15. Copy Economy License Access Economy
  • 16. A collective, compulsory blanket license for Music on the Internet
  • 17. Hat tip to Jim Griffin • Standardized, public licensing terms * • Transparent system of how income is distributed (*initially by country, or region) • One-stop licenses for all rights, collectively • No differentiation between streaming or downloading (instead, it’s all just ‘use’) • License fees per user / month, or a percentage of revenues • License fees can generated in many localized variations (“I pay, you pay, they pay...”)
  • 18. We have been here before D ! S E EN L I C
  • 19. Just imagine: If 900 Million people could generate only £ 10 per year / per person, £ 9 Billion would be available for paying artists. •••• If a blanket license for digital music was available, the license fees per user could be entirely funded by advertisers, brands, telecoms, device makers and others!
  • 20. Hat tip to Jim Griffin per week
  • 21. Could Advertising help to pay for Music?
  • 22. Advertising will continue to fund a lot of ‘free’ content
  • 23. Because Data is the new Oil $1 Trillion
  • 24. Hat tip to Shelly Palmer Paid Content I pay You pay They pay Free Content
  • 25. I pay, you pay, they pay *Inspired by Shelly Palmer Subscriptions Micro-Payments Bundles Applications Social Payments Flat Rates Telcos & ISPs Advertisers Device Makers Taxes Patronage
  • 26.
  • 27. Music 2.0: the pricing logic flips Price Users 100 75 50 25 0 Was Will be
  • 28. People pay when they see value, when the price is right, and when it’s easy
  • 29. Free + + + ++ +
  • 30. This is the new model Acceptance of new Reality Permission / License Fair Collection & Distribution Develop New Generatives
  • 31. The other 3 Billion (O3B) are coming
  • 32. Governments Telecoms Authors & Creators Search Engines Advertisers Publishers Consumers We were able to sell copies ‘on our own’, but Device Makers we can’t ‘Sell Access’ on our own!
  • 33. Music 2.0: the inevitable Shift to Open Open licenses Open innovation Open distribution Open competition Open partnerships Open technologies Open data standards
  • 34. The 3 most important tools for success Hat tip to Mike Mesnick / Techdirt
  • 37. Thanks for your attention! email me at gerd@mediafuturist.com twitter.com/gleonhard facebook: gleonhard