A Million Medicis: Funding the Content Revolution

A Million Medicis:Funding the Content Revolution

David Dylan ThomasSenior Content Strategist,

EPAM

@movie_pundit

Discuss Early, Discuss Often

Capitol Records Complaint

“ReDigi makes and assists its users in making systematic, repeated and unauthorized reproductions and distributions of Plaintiffs copyrighted sound recordings.”

“Digital Files Are Not Material Objects Subject to the Distribution Right”

“The statute is quite plain. It is clear that digital music files, which are not material objects, are therefore neither copies nor phonorecords, hence not subject to the distribution right. If they were to be considered material objects, copies, or phonorecords within the meaning of 17 U.S.C. 106(3), they would also have to be considered material objects, copies, or phonorecords within the meaning of 17 U.S.C. 109(a), hence exempt anyway – in ReDigi’s case – under the First Sale Doctrine (discussed infra).”

No Dice, Grandma

“It is beside the point that the original phonorecord no longer exists. It matters only that a new phonorecord has been created.”

What the Hell Is a “Phonorecord”?

“…material objects in which sounds, other than those accompanying a motion picture or other audiovisual work, are fixed.”

-United States Copyright Act of 1976

(yup, 1976)

No Dice, Grandma

“It is beside the point that the original phonorecord no longer exists. It matters only that a new phonorecord has been created.”

How to Resell Your MP3’s

How to Resell Your MP3’s

All you have to do is sell your “ 'particular' phonorecord, be it a computer hard disk, iPod, or other memory device onto which the file was originally downloaded.”

How we pay for a thing is tied to how we think about that thing.

Desirable + Scarce = Expensive

Desirable + Scarce = Expensive

Desirable + Common = Cheap

Desirable + Scarce = Expensive

Desirable + Common = Cheap

Desirable + Infinitely Replicable = ???

Artificial Scarcity

Artificial Scarcity

This. Breaks. Easily.

Record companies want you to treat digital goods like physical goods, until they don’t.

Is there any such thing as a used mp3?

Even These Children Figured It Out

“Physical copies of works degrade with time and use, making used copies less desirable than new ones. Digital information does not degrade, and can be reproduced perfectly on a recipient’s computer. The ‘used’ copy is just as desirable as (in fact, is indistinguishable from) a new copy of the same work. Time, space, effort and cost no longer act as barriers to the movement of copies, since digital copies can be transmitted nearly instantaneously anywhere in the world with minimal effort and negligible cost. The need to transport physical copies of works, which acts as a natural brake on the effect of resales on the copyright owner’s market, no longer exists in the realm of digital transmissions.”

- U.S. Copyright Office Report to Congress, 2001

Entropy is what keeps the physical market afloat.

In digital content, the idea of an “original” and a “copy” ceases to exist,

and we don’t have an economy for that.

In digital content, the idea of an “original” and a “copy” ceases to exist,

and we don’t have an economy for that.

(But we do have a way to think about it….)

3 Kinds of Sharing

3 Kinds of Sharing

3 Kinds of Sharing

3 Kinds of Sharing

3 Kinds of Sharing

3 Kinds of Sharing

Content = Information

• It doesn’t just represent information

• It doesn’t just contain information

• It doesn’t just point to information

• It is itself information

Is there a way to think about monetizing content that aligns with

its fundamental nature?

Is there a way to think about monetizing content that aligns with

its fundamental nature?

And what we like to do with content?

Content as a Service

This Is Not Scarce This Is

Crowdsourced Patronage

Crowdsourced Patronage

Crowdsourced Patronage

Crowdsourced Patronage

Crowdsourced Patronage

Crowdsourced Patronage

“It’s about horses, not races.”

Who would you subscribe to?

How do we discover new talent?

Spoken Reasons has 1,000,000 subscribers on YouTube.

Spoken Reasons has 1,000,000 subscribers on YouTube.

If only 5% of them agreed to give him $1 a month, he would make $600,000 a year.

Spoken Reasons has 1,000,000 subscribers on YouTube.

If only 5% of them agreed to give him $1 a month, he would make $600,000 a year.

He doesn’t need Hollywood…

Spoken Reasons has 1,000,000 subscribers on YouTube.

If only 5% of them agreed to give him $1 a month, he would make $600,000 a year.

He doesn’t need Hollywood… …Hollywood needs him.

Who would subscribe to you?

What does this new ecosystem look like?

Audience

CENTRALIZED RISK

Producer / Distributor

Pricing

DRM

Artist

Final Cut

Gatekeeping

Audience(Artists)Final Cut

Creative Commons

Pricing

Gatekeeping

Platform

DISTRIBUTED RISK

Artist

Where this doesn’t work

Creative Middle Class

Guess what costs $7 million?

Guess what costs $7 million?

The Hybrid Approach

The Hybrid Approach

The Hybrid Approach

"It’s a massive growth area. We’re very excited about the creativity of consumers using our repertoire and creating their own versions of our videos.”

- Francis Keeling, Global Head of Digital Business for Universal Music Group

The Hybrid Approach

What is a song?

Open Discussion

Keep the discussion going…

David Dylan Thomas

#NewMedicis

@movie_pundit