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

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by Gerd Leonhard

IFPI

What’s important *in this order

Talent & Merit Building an AudienceGetting 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!

Today

Tomorrow

Cheap, ubiquitous, mobile, social

Connectivity

A connected world is a different world

New BehaviorsNew Standards

New Social ContractsNew 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!)

Source: istockphoto

The Toll-Booth Challengehow to monetize access rather than copies

Copy Economy

Access Economy

License

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

LICENSED!

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

Free Content

Paid Content I pay You pay They pay

Hat tip to Shelly Palmer

I pay, you pay, they pay *Inspired by Shelly Palmer

Advertisers

Bundles

Subscriptions

Flat Rates

Applications

Telcos & ISPs

Device Makers

Taxes

Social Payments

Micro-Payments

Patronage

0

25

50

75

100

Was Will be

Price Users

Music 2.0: the pricing logic flips

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 RealityPermission / License

Fair Collection & DistributionDevelop New Generatives

The other 3 Billion (O3B) are coming

Governments

Authors & Creators

Advertisers

Device Makers Consumers

Publishers

Search Engines

Telecoms

We were able to sell copies ‘on our own’, but we can’t ‘Sell Access’ on our own!

Music 2.0: the inevitable Shift to Open

Open licensesOpen innovationOpen distributionOpen competitionOpen partnershipsOpen technologies

Open data standards

The 3 most important tools for success

Hat tip to Mike Mesnick / Techdirt

Magnetism = Money

Summary

Control ≠ Money

License

email me at gerd@mediafuturist.comtwitter.com/gleonhardfacebook: gleonhard

Thanks for your attention!