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Squeezing the Evil out of the music industry John Buckman <[email protected]> http://slideshare.net/johnbuckman http://creativecommons.org/licenses/by-sa/3.0/

Squeezing the evil out of the music industry

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I talk about my past, how went from an open source geek, to a free culture advocate, and about Magnatune and BookMooch

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Page 1: Squeezing the evil out of the music industry

Squeezing the Evilout of the music industry

John Buckman <[email protected]>http://slideshare.net/johnbuckman

http://creativecommons.org/licenses/by-sa/3.0/

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Squeezing the Evilout of the music industry

John Buckman <[email protected]>http://slideshare.net/johnbuckman

http://creativecommons.org/licenses/by-sa/3.0/

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Personal

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My Journey

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From Open Source

Geek

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int Ns_ModuleInit(char *hServer, char *hModule) { nsdbContext *context = ns_malloc(sizeof(nsdbContext)); Ns_RegisterShutdown(nsbdShutdown, context); if (hServer) { context->server = ns_malloc(strlen(hServer)+1); strcpy(context->server, hServer); } else { context->server = NULL; } if (hModule) { context->module = ns_malloc(strlen(hModule)+1); strcpy(context->module, hModule); } else { context->module = NULL; } Tcl_InitHashTable(&table_handles, TCL_STRING_KEYS); dbenv_start(home);

Ns_MutexInit(&mutexBDPut); Ns_MutexInit(&mutexBDSync);

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ToOpen Culture

Nerd

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from Legally

Ignorant

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1993(I was 24 years old):

Desktop Internet Reference

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License:

The Desktop Internet Reference is in the public domainand may not be sold...

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That makes no (legal) sense.

but it was a “CC by-nc-sa” concept

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to Stallman

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http://www.samag.com/documents/s=1148/sam0107a/0107a.htm

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to Lessig

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to Blissful

Enlightenment

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AmarokRhythmboxSongbird

Squeezebox

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Bang & OlufsenRenault

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Blair Witch Project

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Ubuntu &

Canonical

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It’s all good

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from Introvertedby nature

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A film:

“Defending Your Life”

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Toastmasters

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toExtrovertedby choice

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A bit moreActivist

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Wanting to sleep better at night

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Lyris

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Majordomo

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Mailman

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Unhappy

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Sold out

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But, there was a problem.

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Our business model sucked.

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BIG music license fees are an old-boy network

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Our download advantages:

* no drm* high audio quality* musicians get paid

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Yawn.

iTunes does that all now.

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Cory Doctorow says:

DRM is not a feature

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I say:

The lack of DRM is also not a feature.

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Our consumer model is outdated.

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In 1970:

Shopping for music is fun!

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In 2000:

Shopping online for music is fun!

(just like in a physical store)

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In 2008:

Shopping for music online is boring

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Find a teenage girl

Look at her iPod

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You will find:

CollectionsMusic from my friend Amy

That cute DJChill out

I wanna feel good! music

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Our analysis:

being a music librarian is no fun

- picking music is tedious- backing up, moving music is work

- “I just want to listen!”

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Our analysis:

People want access, they want curated collections,

they want simplicity.

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Our new business model

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Help us stop selling you music

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Tell us how much you want to pay each month

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We give you complete access to our music, in every way you can

imagine

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streaming from workdownloads

3g iPhone appweb player

multihour podcastsCreative Commons legalized sharing

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completely changes the seller/buyer dynamic

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“customers” become

“members” and “supporters” and

“connectors”

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and all I need to worry about is keeping them happy.

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Forget B2C!

What about B2B?

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US music business is$18 billion annually

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$12 billion of that is licensing

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Yes, 2/3rds.

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Record labels are scared, slow, stupid.

And they’re downsizing.

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And many companies are out-competing them with licensing.

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Our niche:

rights you can’t get elsewhere

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Renault Megane

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From the producers of The Blair Witch Project

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To summarize

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Music licensing is an ok business

slow to build, focus on untapped niches

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Download sales are dying

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For now:

Memberships, all-you-can-eat,no restrictions,

works.

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Magnatune won’t take over the world

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but it can make a contribution

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and it’s a nice way to spend a decade of my life

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Home bookshelves around the world

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Their books available to you

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for free

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and nothing publishers can do about it

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BookMoochmakes money with:

- margin on Amazon sales

($40,000 in monthly Amazon book sales)

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Twenty companies

The largest:

BookCrossingPaperbackSwap

BookMooch

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Estimate:

Two million people have tried book swapping

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At least

50,000 books are swapped

each day

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Google loves us

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BookMooch - total number of swaps

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BookMooch - total number of swaps

1 year ago: 300,000 - now at 1.1 million

300,000 in 1st year

800,000 in 2nd year

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Book swapping web siteswill be the first global, free

repository of most historical human knowledge

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John Buckman <[email protected]>

http://slideshare.net/johnbuckman

Whatcha think?

CC BY-SA 3.0 - http://creativecommons.org/licenses/by-sa/3.0/