Gerd Leonhard Presentation Music2.0 Barcelona June 2008

www.mediafuturist.com
Gerd Leonhard
gerd@mediafuturist.com
www.music20book.com
Music 2.0 ...what when and why
Tuesday, June 17, 2008

C u l t u re

We need a
Networked
Music Business.

We need a
Web-Native
Music Business.

We need a
Social Medium

Gerd Leonhard www.mediafuturist.com
Mark AndreesenW e a r e h e r e

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.
What do Amazon Google Nokia Sirius/XM Wordpress Linux
Skype Wikipedia Craigslist Apple Facebook Last.fm Tivo
Netflix Easyjet .... have in common?

What does a web-native model look like?
Respect for the Creators and the Users, first and foremost
Based on Access first, then Copy
Based on Usage Rights, not (just) Copyright
Based on dozens of revenue streams, not just ‘selling copies’
Driven by Sharing
Driven by Syndication (and users marketing what they like)
Decentralized
Powered by an entirely new kind of Advertising
Multi-platform access but mostly mobile
Bundled in other services, basic access ‘feels like free’
Open and transparent

Goodbye ‘Copy’
Adios to the Western Definition of Copyright as Sole Value of Music

Goodbye ‘Consumer’

Goodbye ‘Control’

Welcome: The digital Music Flat Rate

The web powers the global trend towards free and open
Both “Open” as well as “Free” are the
biggest Opportunity that Music
Creators have ever had.

More Wonderment
Rising Influence of Peers and Peer Production
A new force: strangers you trust
Huge dominance of Search (and now... Mobile)
The Millennials / Net Generation takes over
Searching Content created by People you Trust
Going direct from creator to user is now reality
- the new marketing is SHARING
* Inspired by Steve Rubel

Without sharing, the music business will die
"In the past you were what you owned. Now you are what you share."
Charles Leadbeater – We Think

Wanting to disconnect people because they
download content & music is wrong.
Criminalizing 90% of the population because of
a lack of a new model to serve them is wrong.
Exploiting market weaknesses to withhold music
is wrong.
Ruthlessly capitalizing on market position and
clout is wrong.
Using copyright as an excuse to extort the users
and the organizations that serve them is wrong
Time for a serious change

A message from the St. Petersburg
International Economic Forum:
Economic Egoism won’t solve our global problems

Ask yourself:
In 12-18 months...
who will really matter?

Old tollbooth logic
http://www.repmanblog.com/photos/uncategorized/48750_a.jpg

New tollbooth logic

Y e s - a t t e n t i o n i s r e a l M o n e y
c o n s u m e r s
w i l l P a y w i t h
A t t e n t i o n
M u s i c P a i d w i t h
A t t e n t i o n

And a flat rate is just the beginning!

For the creators
For the Users Feels Like
Free

Let’s start sharing in those revenues!
Start giving PERMISSION

And once 4 Billion phones are connected

Search IS Media -what better place to offer your music?

So why isn’t Google licensed for music yet?
A huge opportunity
all we need to is to actually PROVIDE THE MUSIC

And get ‘paid with attention’

We have to offer a license to the networks first,
and enable a Flat Rate that legalizes the
ubiquitous use of music.
If there is no voluntary collective we may
need to enforce its creation.
If the ISPs are forced to unplug people we
may have to unplug the industry, too.

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

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 - "paying simply because it feels good"
8. Findability & Curation

Yes, there are many issues, but:
The evils of ‘too open’ or ‘too much
freedom’ will always pale compared
to the evils of closed, central,
controlled and authoritarian

"When The winds of change are
blowing, some people are building
shelters, and others are building
windmills." Chinese Proverb

Gerd Leonhard
gerd@mediafuturist.com
www.music20book.com
Thanks for listening!

Gerd Leonhard Presentation Music2.0 Barcelona June 2008

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