How Technology is Changing�The Business of Culture:�Configurable Culture and Web 2.0

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Information about How Technology is Changing�The Business of Culture:�Configurable Culture...

Published on September 4, 2015

Author: originalsinn

Source: slideshare.net

1. How Technology is Changing The Business of Culture: Configurable Culture and Web 2.0 Prepared for Communicate! 11/9/06 Aram Sinnreich Radar Research/USC Annenberg

2. We are currently experiencing a sea change in how audiences consume media.

3. 2006: The summer of remix, mashups and “configurable culture” • Music – Beck: invited consumers to remix his new album – Janet Jackson: fans “remixed” album cover – CBC’s “Remix the Ring” challenge – Number one song is “Crazy” by Gnarls Barkley • From bete noir to best hope for music industry • Song is extremely popular subject for mashups, remixed and covers Source: Radar Research, Nov 2006

4. In Focus: Gnarls Barkley • Gian Pero Reverberi, 1968 • Gnarls Barkley, 2006 • Nelly Furtado, 2006 • Countless remixes and mashups, 2006 Source: Radar Research, Nov 2006

5. 2006: The summer of remix, mashups and “configurable culture” • Movies – The Onyx Project – Awesome; I Fuckin’ Shot That! Beastie Boys concert documentary – Snakes on a Plane • Fan buzz impacted both production and marketing strategy – Reshoots based on fan feedback – Marketing leveraged mass customization and viral hype Source: Radar Research, Nov 2006

6. In Focus: Snakes on a Plane • Summer 2005: Principal shooting. Title changed. • August 2005: Blog post by writer Josh Friedman. • Fall/Winter 2005/6: Internet hype percolates. • March, 2006: Title reverts. Five days additional shooting. • 8/15/06: Snakes on a Train released to DVD • 8/18/06: Snakes on a Plane theatrical release Source: Radar Research, Nov 2006 "Enough is enough! I have had it with these motherfucking snakes on this motherfucking plane!" New Line got it right: film marketing echoed online viral marketing

7. 2006: The summer of remix, mashups and “configurable culture” Videogames – Counter Strike • Total conversion mod of Half-Life • Has become most popular “first-person shooter” game in history • About 5 billion player minutes per month – more than three times the volume of its next competitor – Adidas and Toyota set up shop in Second Life • Leo Burnett and BBH follow Source: Radar Research, Nov 2006

8. 2006: The summer of remix, mashups and “configurable culture” • Television – American Idol • Spurred SMS adoption • Attempts to integrate audience feedback into story architecture – The Colbert Report • Green screen challenge – Leverages “star wars kid” meme – Has been mashed with Phantom Menace, ipod ads, video games, and OK Go music videos Source: Radar Research, Nov 2006

9. 2006: The summer of remix, mashups and “configurable culture” • Internet – Explosion of social networking sites: MySpace, Facebook – Online video: Youtube, Google Video, MySpace Video – Blogs, RSS – Application mashups: Zillow, Sopranos/Google Maps, Flickr mashups Source: Radar Research, Nov 2006

10. What is configurable culture? –Instantaneous –Global –Multi-sensory –Archival –Editable –Networked –Interoperable –Customizable – Hackable Source: Radar Research, Nov 2006

11. Expertise as Spectrum: Colonizing the “Gray Area” Consumer Enthusiast Prosumer Professional Source: Radar Research, Nov 2006

12. The “culture of configurability” influences every aesthetic practice: fashion, architecture, design

13. But wait a second – how much of this is simply a new “flavor” of entertainment? How many are actually doing these things?

14. Niche is the new Mainstream 15.8% 9.4% 10.3% 15.3% 15.8% 19.9% 20.0% 23.3% 25.8% 28.0% 30.2% 35.4% 46.0% 55.1% 76.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% None of the above Software mashups Machinima Video mashups Game mods Game emulators trading game currency Anime music videos Music Mashups TV or film remixes TV commercial remixes Music sampling Altered photos Music remixes Blogs Which of the following practices have you heard about before? Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006

15. Popularity of remix doesn’t yet hinge on production 64.4% 2.0% 2.5% 2.6% 2.7% 5.5% 5.8% 6.5% 8.5% 10.9% 23.6% 0% 10% 20% 30% 40% 50% 60% 70% None of the above Created a remix video TV/movie karaoke Contributed to a video sharing site Shared my playlist Create a playlist Blogged about TV/film Shared digital video Access easter eggs on a DVD Used a DVR Accessed bonus features on DVD Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006 In the past year, which of the following film and TV-related activities have you engaged in?

16. Popularity of remix doesn’t yet hinge on production 64.7% 1.2% 3.0% 3.2% 4.4% 6.9% 9.8% 12.4% 21.6% 0% 10% 20% 30% 40% 50% 60% 70% None of the above Sold sample music Created sample bank Created sample music Custom online radio Blogged about music File sharing Karaoke Made play list Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006 In the past year, which of the following music-related activities have you engaged in?

17. Popularity of remix doesn’t yet hinge on production 81.0% 1.7% 1.8% 3.8% 4.4% 5.7% 7.4% 11.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% None of the above Hacked game code Modded game Exchanged items AIMed with players Blogged about game Customized character Cheats Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006 In the past year, which of the following video game-related activities have you engaged in?

18. Popularity of remix doesn’t yet hinge on production 52.6% 6.4% 9.2% 10.7% 11.0% 26.5% 32.6% 0% 10% 20% 30% 40% 50% 60% None of the above Custom photo product Blogged about photo Shared remix photo Photoshopped "mash-up" Shared photo Simple edits Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006 In the past year, which of the following photo-related activities have you engaged in?

19. What’s considered “mainstream” is in the age of the beholder Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006 Percentage of respondents reporting “none of the above” to previous questions (by age) 0% 20% 40% 60% 80% 100% Music Film/TV Video games Photos 55+ 45-54 35-44 26-34 18-25

20. Entertainment is the number one motivator for remixing 2.1 2.3 2.3 2.3 2.4 2.4 2.6 2.7 2.7 2.9 1 1.5 2 2.5 3 3.5 4 4.5 5 Social protest Create a "calling card" Economic necessity Win a contest Cultural Criticism Because I'm a fan Amuse my friends Create Art Hone technical skills For the fun of it How important do you consider the following reasons for creating remixes or mash-ups? Source: Radar Research/Intellisurvey; n=1765; US Only; Oct 2006

21. Moving on: Programming Strategies for Web 2.0

22. Stakes are getting high… AGAIN • Feb 03: Google buys Blogger for $20M • Jul 04: Cnet buys Webshots for $71M • Jul 04: Yahoo buys Oddpost for $20M • Feb 05: IAC buys Bloglines for $25M • Mar 05: Yahoo! buys Flickr.com for $35M • Jul 05: News Corp buys MySpace for $580M • Sept 05: eBay buys Skype for $2.6B • Dec 05: Yahoo! buys del.icio.us for $35M • Aug 06: Sony buys Grouper for $65M • Aug 06: Viacom buys Atom for $200M • Oct 06: Google buys YouTube for $1.65B Source: Radar Research, Nov 2006

23. What makes this bubble different? • Core business principle #1: Every consumer benefit (demand side) must be matched by an equal benefit for the programmer (supply side) • Core business principle #2: Web 2.0 is user- driven. This has five elements: • Network • Identity • Content • Location • Modularity Source: Radar Research, Nov 2006

24. 10 Pillars of Web 2.0   Demand Side Benefit (audience/consumer) Supply Side Benefit (business owner) Network Network effects Virality Identity Customizability Nichefication Content Participation Volume Location Portability Geo relevance Modularity Extensibility Interoperability Source: Radar Research, Nov 2006

25. Pillars 1 & 2: Network • Network effects (demand side): Metcalfe: the value of a network is proportional to the square of the number of users. This means that a site or service gets more interesting and useful as other users engage with it. • Virality (supply side): A site that benefits from network effects must allow its users to recruit others, thus lowering marketing and customer acquisition costs Source: Radar Research, Nov 2006

26. Pillars 3 & 4: Identity • Customizability (demand side): Successful Web 2.0 sites allow users to specify which content and features they will access, and to organize the way in which these content and features are presented • Nichification (supply side): Customization tools yield rich data about users, spot emerging tastes and trends, and lower production and delivery costs by pre-formatting content to suit the anticipated needs of specific customer segments, or niches Source: Radar Research, Nov 2006

27. Pillars 5 & 6: Content • Participation (demand side): The degree to which users may contribute to the experiences of other visitors at a given site or service. Users who have invested their own time and energy in contributing to a site are both more loyal and more valuable to publishers • Volume (supply side): Participation tools bring the cost of content production down significantly, and provide publishers with the raw materials for a more immersive, customizable site than either editorial or syndicated content. Source: Radar Research, Nov 2006

28. Pillars 7 & 8: Location • Portability (demand side): As mobile devices and wireless networks continue to proliferate, consumers will increasingly see value in sites and services that are formatted to leverage multiple points of entry. • Geo-relevance (supply side): Location- specific advertising and services will be a major engine of revenue growth and a key point of differentiation between the successes and failures of the Web 2.0 era. Source: Radar Research, Nov 2006

29. Pillars 9 & 10: Modularity • Extensibility (demand side): A successful Web 2.0 site offers consumers the promise of increased value over time through the use of extensions, plug-ins, software mash-ups, and other functionality-boosting additions. • Interoperability (supply side): Publishing APIs and helping third-party developers to add functionality will be rewarded with genuine customer loyalty and, ultimately, a more robust, functional, and competitive product. Source: Radar Research, Nov 2006

30. Score card: Pandora   Demand Side Benefit (audience) Supply Side Benefit (business owner) Network Network effects: 2 Virality: 6 Identity Customizability: 7 Nichefication: 8 Content Participation: 3 Volume: 3 Location Portability: 4 Geo relevance: 1 Modularity Extensibility: 2 Interoperability: 2 SCORE (10-100) DEMAND: (18) SUPPLY: (20) Total: (38) Source: Radar Research, Nov 2006

31. Score card: del.icio.us   Demand Side Benefit (audience) Supply Side Benefit (business owner) Network Network effects: 10 Virality: 6 Identity Customizability: 8 Nichefication: 10 Content Participation: 9 Volume: 10 Location Portability: 8 Geo relevance: 6 Modularity Extensibility: 10 Interoperability: 10 SCORE (10-100) DEMAND: (45) SUPPLY: (42) Total: (87) Source: Radar Research, Nov 2006

32. Score card: Your Choice   Demand Side Benefit (audience) Supply Side Benefit (business owner) Network Network effects: Virality: Identity Customizability: Nichefication: Content Participation: Volume: Location Portability: Geo relevance: Modularity Extensibility: Interoperability: SCORE (10-100) DEMAND: (*) SUPPLY: (*) Total: (*) Source: Radar Research, Nov 2006

33. Thank you aram@radarresearch.com aram.sinnreich@usc.edu

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