Futurist Gerd Leonhard on Open is King - The Future of Music, Canadian Music Week 2008

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Information about Futurist Gerd Leonhard on Open is King - The Future of Music, Canadian...

Published on March 9, 2008

Author: gleonhard



"Let's face it: 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..."
advertisement Gerd Leonhard Presentation at Canadian Music Week 2008 Open is King: The Future of Music Saturday, March 8, 2008 1

Nice start but.... where is it going? ITunes Worldwide Potential Saturday, March 8, 2008 2 Maybe we’ve got this the wrong way ‘round ? Rather then try and sell music in the particular way that WE want to sell it, we must finally start offering it IN THE WAY THAT PEOPLE ACTUALLY WANT TO BUY IT. Saturday, March 8, 2008 3 This has been the music industry’s response to almost all new ways of using music With detrimental consequences for the Artists and Writers Saturday, March 8, 2008 4 Saturday, March 8, 2008 5 More Protection will kill us. Engagement will allow us to prosper. A lot. Saturday, March 8, 2008 6 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 Tivo Netflix Easyjet .... have in common? Saturday, March 8, 2008 7 Everywhere else, the shift from Closed to Open is in full swing Saturday, March 8, 2008 8 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 Saturday, March 8, 2008 9 Saturday, March 8, 2008 10 Saturday, March 8, 2008 11 Saturday, March 8, 2008 12 This attitude is what is killing the record industry Saturday, March 8, 2008 13

This has to end now Saturday, March 8, 2008 14

It’s time for a Change Saturday, March 8, 2008 15 A message to the IFPI BPI RIAA CRIA: Say Goodbye to the world of Scarcity Saturday, March 8, 2008 16

and say goodbye to the dominance of Hits Saturday, March 8, 2008 17 The People Welcome to formerly known as Consumers Saturday, March 8, 2008 18

Old tollbooth logic Saturday, March 8, 2008 19

New tollbooth logic Saturday, March 8, 2008 20 consumers will Pay with Attention Music Paid with Attention Yes - attention is real Money Saturday, March 8, 2008 21 Saturday, March 8, 2008 22 For the creators For the Users Feels Like Free Saturday, March 8, 2008 23 Saturday, March 8, 2008 24 Sync TV Live Licenses Film Concert Webcasts Games Recordings Social Sponsorships Networks UGC Advertising Revenue Share Tickets Product Placements Saturday, March 8, 2008 25 But we have to offer a license to the networks first, and enable a Flat Rate that legalizes the ubiquitous use of music Saturday, March 8, 2008 26

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 Saturday, March 8, 2008 27 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 - quot;paying simply because it feels goodquot; 8. Findability & Curation Saturday, March 8, 2008 28

Let’s start sharing in those revenues! Start giving PERMISSION Saturday, March 8, 2008 29 And once 4 Billion phones are connected Saturday, March 8, 2008 30 Saturday, March 8, 2008 31

Let’s take a look at Google Content Content Content Content Content Content Content Content Content Saturday, March 8, 2008 32 Search IS Media -what better place to offer your music? Saturday, March 8, 2008 33 So why isn’t Google licensed for music yet? Saturday, March 8, 2008 34 A huge opportunity all we need to is to actually PROVIDE THE MUSIC Saturday, March 8, 2008 35 How could music NOT make more money in the Future? We just need to adapt and participate Saturday, March 8, 2008 36

Cheaper Music = More Revenues Source: Wired / Chris Anderson Saturday, March 8, 2008 37 2% of the consumers have engaged so far 4 Billion songs sold on iTunes. 4 Billion songs ‘sold’ on Yahoo, Napster, Rhapsody et al 400 Billion Songs unsold. Saturday, March 8, 2008 38

So, do we need more of this? Saturday, March 8, 2008 39

Or more of this? Saturday, March 8, 2008 40 Saturday, March 8, 2008 41 Thanks for listening! skype me anytime: gleonhard Saturday, March 8, 2008 42

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