Music 2.0 - the time is

Now. by Gerd Leonhard‣Futurist

‣ Strategist‣ Author & Blogger

www.mediafuturist.comtwitter.com/gleonhard

Thanks to Flickr.com/alextorrenegra

Only an average of 20% a newspaper’s income is spend on CONTENT CREATION.

Will we keep paying for this...?

Are we willing to pay for...

BuildingsMachinesTrucks / DistributionBonusesCorporate Perks Good ContentCurationSelection

How will Creators make a living...?

Our new reality: Listen / Use = Copy

We need to let go of the value that Unit Sales &

Distribution had in the traditional music business.

“A new Social Contract”

What is this ‘new contract’?

•All use ‘freely’ all pay ‘freely’•Collectively, and for everyone•Open and transparent system•There are many ways to ‘pay’•Access is granted to everyone•More value means more payments•Meter the usage not the copy•Stop banking on Friction!

Stop banking on Control - bank on

Trust

Flat-rated & Bundled Content

It used to be...

Premium“Option”“Extra”

Default

The immediate Future:

The new

‘Normal

The New Premium

Music (Content) is first a Service and an Experience, and only then (maybe) a Product.

If Access replaces Ownership as Default...

AccessEmbodiment

Experience

AccessBundles

How will access to content be paid for?

Paid by 3rd PartiesFlat-Rates

A t t e n t i o n

Income

Structural IncomeStreams

(i.e. built-in, systematic)

Individual Income Streams

(i.e. personal, private)

The Key is Getting Attention. And then, the $$!

Love

Trust

Appreciation

The first question is not: shall I

pay money for your music.

The first question is WHY shall I

pay attention to you.

So there are 3 tasks...

1.Getting more Attention,

maintain & expand the TRUST

2.Convert the Attention into $$

3.Fix the structural problem -

ASAP

Because getting paid for Attention is also a Structural and Political issue

Getting the ‘Pool of Money’ is crucial

What would you rather have?• 50 Million x $1 via blanket music access fees (shared)• 100 x $10 from the few people that buy a-la-carte?

What are we paying for, here...?

Not to eat all the food... but to get Access!

Structural Income Streams• Record & download sales• Composer’s royalties • Public performance, Airplay and

other royaltiesPro-rata with popularityNo individual permission neededRegulated by lawCollective!

How ...?

• Create a new collective, compulsory digital music license

• Adopt open and transparent business platforms and processes

• Abolish Rights Monopolies• Standardize licenses

The Music 2.0 Logic

Bundled Access to content will create the Foundation

Flat Rates, Bundles, Revenue Shares...

Live-Concerts, Web-Casts, Virtual Shows...

Mobile Device Applications & Software

High Definition Formats

Community Premium Offerings

Many more...

Permission i.e. License

Free gets you to a place where you can get paid.

Fred Wilson, Union Square Ventures

• Provide free and easy access to your music, for anyone that is interested *

• Subsidize the free music with next-generation advertising, affiliate sales, data-mining and other ‘New Generatives’

• Addict fans to your offering by providing more and more values all the time *

• Offer a myriad of ways of getting more engaged and buy into Premium offerings

• Convert between 5%-40% of free users to paying users

Personal Income Streams• TV, films, ads: synchronization• Contract work (writing)• Concerts & appearances• Producing• Sponsors, branding, advertising...

Your brand value is crucialA large business network is crucialVisibility is crucialThe Internet provides many tools now!

How to fix the Attention Problem1.Start with being Great - because you

can’t fake it anymore2.Be very very very unique and daringly

different (and still real!)3.Make yourself and your content

available: self-publish everything4.Build a vast network of friends,

followers, business contacts5.Go there! RL / Meatspace & Online:

showing up is half the job!

Now, your followers are your Marketing

Bottom Line:

Great Music + Lots of Attention + Many followers (tribe members) = your marketing = Income.

Was...

Will be

Great User Interface & User Experience changes everything

NewsReader Game-Pad Image ViewerTVRadio Phone Message-CenterLibrary

Wallet

Imagine...

The Mobile Use *fka ‘Consumption’ of Digital Goods is the #1 Growth

Story of the next 5 years

Don’t be too little too late!

Generating Attention

Quit Pushing.

Start Pulling

Work the system!

Link EconomyAttention Economy

Reputation Economy

Starting selling more things that can’t be copied

How is this going to happen?

Summary

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

www.mediafuturist.com

Thanks for listening!