The Road toMusic 2.0

Presentation by Gerd Leonhard

www.mediafuturist.comtwitter.com/gleonhard

www.gerdtube.com

Total fragmentation is certain - very few models will work for everyone!

A new social contract....

Let’s face it:

We’ve had a great ride with physical media and Productized Content - but these days are the past.

The challenge: Creating New Models!

Was Is 2 years 5 years

Content Consumption (all)Revenue PotentialSuccess with Traditional Content Models

Telecoms

Content Owners

Device Makers & CE

Co’s

Search Engines & WebCo’s

Advertisers & Brands

Social Networks

Governments

A jointly defined, new model

New Data Economy

New Content

Economy

Next Generation ‘Advertising’

Our new reality: Use = Copy

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We are living in an age of

Attention Challenge - Distribution is now just a default

Image via http://flickr.com/photos/parsectraveller/

In: Brand Magnetism

Decentralization. Pull. Merit. Trust.

Asia is teaching us something

Google & Free Music in China

•Free / Feels Like Free Music for China!

•Unlimited, unprotected downloads

•Paid with Attention, $-ized via Ads

• In China, little ‘cannibalization’ concerns

•Google is willing to ‘lubricate’

• Industry willing because: China is ‘lost’ for traditional Copyright

A Trillion $ USD Marketing & Advertising Spend will support

a lot of ‘free’ content

Egosystem: My stuff. My ideas. My partners. My distribution. My

customers. My money.

ECOsystem: Our stuff. Our creations.Our distribution. Our users. Our

revenues. Our sharing. Our growth.

A global shift - everywhere

One of the very few places where this still works

A Culture of APIs: Build yours on mine

Marketing as we know is dead

Instead:

The Browser is the new iPodForrester Research: "Increased adoption of mobile data packages and of connected, dedicated portable media players like the iPod Touch are giving consumers on-the-

go access to previously PC-tethered streaming experiences... Ownership becomes less important if the songs you want are available on demand and on the go."

What IS the value of Content?

•Quickly changing ways of consumption•Steep premiums for anything physical!•Good electronic UI / UX finally

becomes feasible

•Free = nobody pays actual $ anywhere

•Feels Like Free = the payment is bundled,

or hidden, or absorbed somewhere else, or

build-in; but: no individual payment decision

is required everytime

•Freemium = all users get a strong value free

of charge, but a certain percentage select to

buy a premium offer beyond the free level

•3rd party pays: someone else pays for my

usage because they want access to me (and

my data)

Monetizing

Quality of Access and Experience, Filtering, Context, Community, Packaging,

Relevance, Timeliness, Authenticity.... The New Generatives *read kk.org

New Generatives: Packaging

New Generatives: Timeliness

New Generatives: Direct Relationships

New Generatives: Added values

New Generatives: Convenience

New Generatives: Filtering & Curation

‘New Money’ Examples

! email me at gerd@mediafuturist.com! twitter.com/gleonhard! facebook: gleonhard! more presentations at

www.mediafuturist.com

Thanks for listening!