the future of music and digital content: mobile, social and... paid?
DESCRIPTION
I had the great pleasure to speak at the Future As Music (FAM) conference in Madrid / Spain, today. This event was organized by AIE (the Artists and Performers Society of Spain) and I was delighted to present alongside one of my favorite colleagues, famed mobilist and mobile content guru Tomi Ahonen. My talk and presentation was on the juicy topic of "The Future of Music & Digital Content: Mobile, Connected, Social, Open... and Paid?" and included comments on: 1) why it makes no sense to disconnect fans from the Internet and expect them to then buy more 'legal' music 2) why the music industry must adapt to the new behaviors of 'the people formerly known as consumers' asap 3) why we have a 'digital toll-booth challenge' (see my column on Spotify) and how we need to structure 'music sales' going forward 4) why music is first an experience and a service, and only then a product (and how the industry can monetize this shift) 5) where the New Generatives will come from 6) why a collective digital music license makes sense - and much more. Here is the slideshow, below (you can download the PDF via slideshare, as well). Enjoy and spread the word!TRANSCRIPT
The Future of Music & Digital Content: Mobile, Connected,
Social, Open... and Paid?by Gerd Leonhard
www.mediafuturist.comtwitter.com/gleonhard
We have a problem...
Disconnect fans to... sell more Music???
Source: Slideshare
So what are those new behaviors?• Access now comes before ownership• All-you-can-eat and unlimited offers, flat-fees
& bundles are critical to success• ‘Feels Like Free’ is a crucial step to conversion• Paying with attention (i.e. advertising) is ok!• The Users are gaining power, all the time
Welcome to the People formerly known as Consumers!
Source: istockphoto
The Toll-Booth Challenge: how tomake $$ with Access rather than Copies
Music is first a Service & an Experience - and only
then (maybe) a Product.
Like it or not:Connected people ‘consume’ differently
Sharing is the Key Driver
Access trumps Copy
Time to accept, adapt and move forward!
Source: kk.org
Copies don’t equal $$ anymore
From Fixed to MobileFrom Physical to Digital
From Top-Down to SocialFrom Consumers to Users
From Push to Pull
Soon:
The New Premium
The new Normal
The irreversible shift in Content & Media
Content
ContentContext
Curation
CommunityInterface
Timeliness
Convenience
Time to focus on the New Generatives
100%
Content / Copy
5%15%
15%
10% 20%
15%
20%
ContentContextCurationTimelinessEmbodiment / PackagingRelevanceOthers
Music Commerce 2.0: don’t try to sell what is Ubiquitous - sell what is
Scarce
Welcome to another pricing logic
0
25
50
75
100
Was Will be
Price per Song Numbers of Users
New revenues from new collaborations
TV
Internet Mobile
Telecom
Content
Advertising
Hybrid Models in many variations
Personal, digital consumer ‘Piracy’ is simply just Market Failure
Source: CEA.org
This will not work
We have been here before
LICENSED!
A Public License + Build-in Revenues
+ Proportional Distribution
A new and very lucrative Ecosystem can emerge on-top of the flat-rate
Flat Rates, Bundles, Revenue-Sharing
Live-Concerts, Web-Casts, Virtual Shows...
Mobile Device Applications & Software
High Definition & Premium Media
Community Premium Services
Many other New Generatives
Permission
We don’t pay to eat all the food... we pay for access
Why this is good for the Creators
Attention turns automatically into $$
Distribution is available to everyone, by default
Many up-selling options will emerge
Direct market access is included
Marketing costs will be greatly reduced
Let’s change this film
The Music Industry needs to switch to
OpenOpen licenses
Open innovationOpen distributionOpen competitionOpen partnershipsOpen technologies
Open data standards
Not Control and Protection but Engagement and Conversion
The rising tide floats all boats: Permission, Collaboration and $-Sharing is key
So why is there still so little revenue from Youtube, Myspace, Facebook...?
•Advertisers are always 2-3 years behind•Lack of permission for premium and legal
content slows adoption•Lack of public license has deterred new
investors, and killed many startus•Mobile broadband and smart mobile
devices are just now starting to take off
Every large audience can be monetized
Source: Clay Shirky
Huge opportunities in curation, filtering, meaningful aggregation
versus
Free gets you to a place where you can ask to get paid.Quote by Fred Wilson, Union Square Ventures www.avc.com
Free to paid: examples
I pay - You pay - 3rd party pays
Why I have spend $1000+ on iStockphoto
• Good quality images• Finding the right photo is quick and easy• The rights (licenses) are cleared• The price is right (well... mostly)
• I don’t pay just for the content - I pay for ease of use, peace of mind, the interface, service & curation...!
Content<>Cloud<>$
New ways to package
New ways to ‘sell’
Virtual concerts and venues
Music Industry
LegislationGovernmentRegulation
BrandsAgencies
AdvertisersMedia
Google China President Kai Fu Lee: “Mutual Interest, rather than Monopoly,
is the key to sustainable growth”
Telecom
Summary
My Music 2.0 Book
www.music20thebook.com (Lulu, print)
www.payingwithattention.com (free PDF)
www.musicfutures.com (freee mobile version)
email me at [email protected]/gleonhard
facebook: gleonhardmore presentations at
www.mediafuturist.com
Thanks for your time