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Open is King - The Future of the Music Industry
This is from a presentation I have at Canadian Music Week 2008, in Toronto, Canada. Summary: Controlling the digital distribution of music is over. In addition, the Web is forever changing music production, promotion, marketing and even A&R, as well. Any and all music is now available online, permitted or not, streamed or downloaded - if anyone still cares for making that distinction. And as of early 2008, the snake-oiled idea of DRM and digital copy protection is finally, officially, irrevocably, toast, too. The battle for digital control has been lost. For those digital natives, access to music is already replacing ownership. Radio - as we knew it - is now playing second fiddle to Online Social Networks, and the kids are tuning out of MTV & VH1 and into free, web-based, shortform TV like YouTube. Flat rate music proposals are being discussed around the globe, and gathering steam. Now, the key question is this: how can music creators get paid (and indeed, prosper!) in a world of open access, feels-like-free, paying-with-attention, a world where telecom operators, search engines and online giants run the show? How do we make money after we give up control (and it certainly looks there is no other choice)? In his keynote, Gerd will talk about why it is crucial to welcome this change, and let go of the idea of controlling the digital flow of music, and where the new cash will come from - and lots of it, too...
More at http://www.mediafuturist.com/2008/03/my-presentati-1.html
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Document Transcript:
Gerd Leonhard
gerd@mediafuturist.com
www.mediafuturist.com
Presentation at Canadian Music Week 2008
Open is King:
The Future of Music
Saturday, March 8, 2008 1www.mediafuturist.com
Nice start but.... where is it going?
ITunes Worldwide Potential
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Maybe weÕve got this the wrong way Ôround ?
Rather then
try and sell music
in the particular way
that WE want to sell it,
we must Þnally start
offering it IN THE
WAY THAT
PEOPLE
ACTUALLY
WANT TO BUY
IT.
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This has been the music industryÕs response
to almost all new ways of using music
With detrimental consequences for the Artists and Writers
Saturday, March 8, 2008 4www.mediafuturist.com
turday, March 8, 2008 5Sawww.mediafuturist.com
More Protection will kill us.
Engagement will allow us to prosper. A lot.
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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.
Which side are you on?
What do Amazon Google Nokia Sirius/XM Wordpress Linux
Skype Wikipedia Craigslist Apple Facebook Last.fm Tivo
Netflix Easyjet .... have in common?
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Everywhere else, the shift from Closed to Open is in full swing
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The Abject Failure of Music Protection & Control
Trying to control digital distribution via technical protection
measures (DRM / TPM) has FAILED and trying to control
digital distribution via the Networks will fail, too.
1 3
2
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This attitude is what is killing the record industry
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This has to end now
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ItÕs time for a Change
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A message to the IFPI BPI RIAA CRIA:
Say Goodbye to the world of Scarcity
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and say goodbye to the dominance of Hits
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T h e P e o p l e
Welcome to f o r m e r l y
k n o w n a s
Consumers
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Old tollbooth logic
http://www.repmanblog.com/photos/uncategorized/48750_a.jpg
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New tollbooth logic
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c o n s u m e r s
w i l l P a y w i t h
Attention
M u s i c P a i d w i t h
Attention
Yes - attention is real Money
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For the creators
For the Users
Feels Like
Free
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Sync TV Live
Licenses Film Concert Webcasts
Games Recordings
Social
Sponsorships Networks
UGC Advertising
Revenue Share Tickets
Product
Placements
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But we have to offer a license to the networks
first, and enable a Flat Rate that legalizes the
ubiquitous use of music
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The Future of Content *Inspired by Kevin Kelly
Copies of digital content will
Feel Like Free
Context is not
The Experience is not
Packaging [Alt Out] is not
Curation is not
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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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LetÕs start sharing in those revenues!
Start giving PERMISSION
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And once 4 Billion phones are connected
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Saturday, March 8, 2008 31LetÕ s take a look at Google www.mediafuturist.com
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Content
Content
Content
Content
Content
Content
Content
Content
Contentwww.mediafuturist.com
Search IS Media -what better place to offer your music?
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So why isnÕt Google licensed for music yet?
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A huge opportunity
all we need to is to actually PROVIDE THE MUSIC
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How could music NOT make more
money in the Future?
W e j u s t n e e d t o a d a p t a n d participate
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Cheaper Music = More Revenues
Source: Wired / Chris Anderson
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2% of the consumers have engaged so far 4 Billion songs sold on iTunes.
4 Billion songs ÔsoldÕ on Yahoo, Napster, Rhapsody et al
400 Billion Songs unsold.
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So, do we need more of this?
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Or more of this?
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Thanks for listening!
www.mediafuturist.com
www.music20book.com
skype me anytime: gleonhard
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