A new form of music consumption

An overview of Interactive:

- File formats- Apps- Games- Creative outlets

Digital Music Trends

www.digitalmusictrends.com digitalmusictrends@gmail.comwww.twitter.com/digimusictrends

Audio Podcast started in March 2009 focused onmusic technology and start-ups.

Interviewed many companies working on Interactive Music Platforms (MXP4, RjDj, GoMix, Music Myne, Tronme, Aviary, Zooz Mobile)

Aims of the Workshop:

Become familiar with the latest developments in interactive music

Explore how they can affect the way you workin your respective field

Look at interactive music as a possiblealternative revenue stream

Understand how can interactive music can be relevant to others in different ways

Internet + Storytelling + Interaction

Non-linear

Participatory (game-like?)

Immersive

(Frank Rose Wired Magazine DMT Episode 41)

Media Business - in the last 150 years it was an Industrial model

In order for it to work it had to be based on scarcity

Scarcity was artificial since the industry controlled the output and Scarcity gave the product value.

Today there is no more scarcity = the model has to shift need to provide the users with added value and with an active & engaging experience. Music & Media companies based on the industrial model, how can they cope with this shift?

Is an interactive music experience a way to draw music fans backIn?

The new MP3?

The contenders to the throne....

Music DNA

Applies to individual tracks

Can Already be ready by many players as it's an extension of MPEG7

Additional multimedia content can be embedded in the file

Integration with social media the file upgrades itself

ENHANCED METADATA

CMX or Connected Media Experience

Announced August 2009

One bundled album file includes everything (artwork, extras, lyrics, videos etc...)

All 4 majors involved

Open format any label can use it

Problems:

Still in development

Release was meant to be in Q2 of 2010 but no word as to what's happening as of yet

As it stands no participatory element it's basically an MP3 with additional content

Desktop only at launch?

iTunes LP

Launched November 2009

Proprietary Apple format

Aim is to re-create the LP experience digitally

Few releases have truly exploited the format most notable recently is Plastic Beach by the Gorillaz.

Problems:

No iPhone or iPad integration as of yet

Closed & Proprietary system - will only work with Apple technology

After the death of DRM in music can the introduction of the iTunes LP re-create the same sorts of restrictions? A new walled garden replaces the old one.

But Do we need a new format?

Re-mixing music applications

Can they satisfy the demand for interactivity even if not as immediately available as MP3s?

MXP4 - Play with it

Developing this technology since 2006 creating a format (MXP4) and a number of appsSing it, Mix it, Remix it, Max it. All ways to interact with the music.

.MXP4 is a format but does not want to be a new standard

Technology can be integrated into other platforms

Possible Revenue Streams

Brands

Advertising Agencies

Labels

Online Ad networks

Licensing opportunities

Example Keane Stop For a Minute

Fans get the opportunity to interact with the music

It does not want to become a brand

Employs session musicians completely different mixes from the original

At the moment provides labels with tools for remix contests

Major revenue stream would be in allowing fans to download and share theircreations or to export them as ringtones

Example - Placebo Running up that Hill

Usually works with major labels

Focuses on bringing artists + brands together on campaigns

Great integration with social networks

This helps the applications spread virally

Aim for 2010 is to allow fans to purchase the remixes made on the platform

Just received 150,000 small business innovation research grant from the National Science Foundation science foundation

At the moment free on the iTunes store until the end of June so grab it and try it out in the meantime!

High Profile Jackson 5 Application

Example Jackson 5 app

Mobile app that exploits sensors in modern smart-phones (ex. Accellerometer)

Focus is on Music Re-Creation = buying a track you already know but personalize it

as well

Movement activates samples (ex. shaking)

Users can virtually collaborate on a remix

Pushing its own format called .IVS

3 levels of interaction

IVS1 fully interactive

IVS2 partially interactiveand provided by the label

IVS3 partially interactive canbe built from a normal MP3 file

Video integration encourages users to make their own music videos

Sharing facilities

Both as desktop software and iPhone app

BUT : OWN file format + OWN software = maybe asking too much from the user?

Taking interaction one step beyond into your everyday life

A completely new music experience

Based on scenes

Every single sensor on the iPhone canbe assigned to the creation/modification ofthe sounds including:

- Accellerometer- Touch screen- Microphone- location/GPS

The music integrates elements of yourenvironment = an endless Soundscape

Through scenes like Cosmic Booty byFabrice Lig RjDj is becoming more andmore like an instrument

Platform now on the iPad with the RJVoyager

A new approach to musiccreation and consumption?

And finally let's not forget games didn't they start this whole interactive wave after all?

In the beginning:

Huge success stories between 2005 and 2008

In 2009 Guitar hero saw a significant drop in sales

Critics blamed it on market saturation too much content and not enough innovation

Both Guitar Hero and RockBand are struggling but RockBand has fared better thanks to a wider offer of downloadable content

Never stop innovating and give the users what they want!

Tapulous and Tap Tap Revenge

One of the most successful apps for the iPhone

Lucrative artist-specific apps (Nine Inch Nails, Lady Gaga, Coldplay etc...)

Great opportunities for expansion with the iPad and tablet market in general

Will the sales of these games recover or is the future of interactive music gaming in the hands of......

New devices and new frontiers

Music Pets

Facebok-based game

Farmville-like concept

Keep pet happy + share content with friends

Content Partnership with UniversalMagic Piano for the iPad

Anyone can play, no skills needed

Select the number of keys you want to use

Connect with other users with a Duet mode

Augmented reality and 42 Entertainment

Is it Branded Entertainment, Marketing or Art?

Creating Meaningful Engagement + Emotional Connection

This cannot be done without great content & Experience

Content is Queen

Experience is King

Can I still produce an interactive experience without big budgets or a label supporting me?

ABSOLUTELY YES

A pressing question from artists:

MXP4 Editor to create interactive tracks

RjDj software to create Scenes

Myna: Web-based audio editing tool

The aim is to make creative tools available for everyone

Basic and easy multi-track sequencer, easy to learn!

Soundcloud integration

Can Music Production Software Move onto the cloud?

Can this popularize the multi-track and allow for more users to create for example RjDj scenes or MXP4 files?

Many issues to confront

Artists/Labels uncomfortable with having users mess with their music

How to split up the revenue?? A real headache....

Licensing problems

Different Mobile operating systems = a lot of work for developers, how to choose?

Quality of content: no content = no sales

You can reach a huge public quickly but will it stick around after the novelty wears off?

Artists

Labels

Developers

Brands

Workshop 4 Groups

The aim is to look at the opportunities, issues, problems and solutions that interactive music can bring to the groups outlined below.

Artists:

Many interactive music applications allow the fans to take control of the music and change it/customize it are you OK with that? What degree of control do you want over your recordings?

Some of these applications allow the fans to export what they have created and share it with their friends/post it online how do you feel about that?

What type of platform amongst the ones mentioned above would you prefer to have your music remixed on and why?

How do you think would be the most effective way to be paid for the content? Which would you prefer and why? Pros/Cons (advertising, brand sponsorship, in-app purchase of content etc...)

Would you be willing to think about the interactive element at the creative stage to allow for a better experience?

Labels

How do you think interactive music may impact the usual sales channels both physical and digital?

What do you think are the most interesting and possibly profitable business model amongst the ones outlined in the presentation? (In-App purchase, Ringtone purchase, Remix Purchase, Streaming fees, Advertising revenue, Brand partnership and in-game purchases like in Music Pets?)

After all the monetization problems experienced by digital distributors are you still willing to experiment with services that may end up not taking off or do you hold off and prefer working with an established organization?

How in your experience are artists reacting to these new developments? Are they happy to embrace them or are they worried about their impact? Outline if you see a difference between older artists and young "digital generation ones"

Can tools like the MXP4 Editor and RjDj's RJC1000 be a way in which unsigned bands can grab the attention of a label's A&R and create buzz?

How would you react if the remix made by a fan through one of the programs mentioned above became more popular than the original version by going viral? How would/could you exploit and monetize that?

Developers/Entrepreneurs:

Of all the formats and the options that I have illustrated in the presentation and that you may be aware of, what are in your opinion the pitfalls and the opportunities in creating for example an interactive format like MXPS versus the creation of a remixing platform like MusicMyne?

Have you had previous experience with interactive music platforms and if so what have your results been so far?

How do you feel about the challenge dposed by the need to create software for multiple mobile operating systems, how do you choose?

Which piece of hardware is most likely to convey the best experience in interactive music?

The app store wants a piece of the revenues as do the labels and the publishers. Will there be enough money left for the program's developers?

How do you think Apple's refusal to allow Flash will impact developers who would like to port for example a really cool Facebook game onto the iPad?

Brands:

What do you look for when trying to find a company or service to work with in order engage consumers/deliver a campaign?

Which one of these points a) artist repertoire b) technologyc) social featuresIs at the top of your list in terms of priorities when choosing a partner and why?

How do you think music interactivity can help your business reach and engage consumers in a more effective way?

How much of a brand sponsorship as described below needs to be tailored to a relationship with the artist?

Are you prepared to invest in this field over, for example, a more passive product placement for a music festival?