music2 gerd leonhard on the next generation of the music business

Gerd Leonhard, Digital Music Entrepreneur & ‘Music & Media Futurist’

www.mediafuturist.com www.gerdpresents.com

CEO, www.sonific.com

The Future of Music &

Music Like [email protected]

www.gerdleonhard.net (blog)

http://www.mediafuturist.com


http://www.gerdpresents.com


http://www.sonific.com


mailto:[email protected]


http://www.gerdleonhard.net


Gerd Leonhard, Music & Media Futurist www.mediafuturist.com

Today, 2 things:

1. Digital music distribution is

out of control - and that will

be a very good thing for all

of us!

2. ‘Music like Water’ will make

all of us a lot more money

than “Music on Plastic”



Gerd Leonhard Music & Media Futurist www.mediafuturist.com

New technologies usually disrupt severely but always make the market bigger

Big technology changes always take longer than we think, but then whe they do happen, they happen

much bigger than anyone expected... and that time is NOW.2007 is a year of drastic changes.




THIS is the end of controllingdistribution - and the beginning of a new boom!




Controlling music is an obsession of the pastParticipating in the Use of Music is the Future




So why do we still have DRM?




Today, we are here

You think music sharing is out of control now ? Think again.....

Tomorrow: SHARING x 1000




8



Gerd Leonhard, Music & Media Futurist [email protected]

The reality:

75.000 different devices that play MP3 files

Approx. 75 devices that play DRM’ed files



Gerd Leonhard, Music & Media Futurist [email protected]

Today

Soon...

75-80 Million devices

1 Billion+ devices




So...

Which of the two options creates a better market place, benefits everyone, and will make a ton more $: an open format, or a closed format?




The business models that empower the end users are

the ones that will win




Some smart stuff from PWC

The Reality: Finding and Being Found is what generates the $$$$ - it’s the BRAND not the COPY


F r o m ‘ T h e N e t w o r k ’ t o

N E T W O R K E D



Gerd Leonhard, Music & Media Futurist

I click - therefore I create value....

I program my

media --- it does

not program me!


Second: the issue of Ubiquity - Music Like Water




Water...

• Everybody uses everybody pays (but not at each and every point of use)

• Tap water is ubiquitous and ‘feels like free’, but ‘better water’ generates $100 Billion per year




Worldwide, almost a $100 Billion per year is spent for something you could also get for free!




$ 0

$ 45




How is Music... Like Water?

• Music is a basic need, to all, not a luxury (for some)

• Everybody uses, everybody pays (but it can ‘feel free’)

• A ‘right of access’ for all, anytime, anywhere

• Premium water costs extra, too

• ‘Normal’ use ‘feels like free’, excess use costs extra

•Ubiquity INCREASES value




Music Like Water would give us growth... like this:




Why buy bottled water if tap water is free?

• Guaranteed quality

• Premiums such as better sound

• Added values and more options (interactivity)

• Timeliness (not yet on tap everywhere)

• “It’s special”




Ubiquity

23

Internet

95% buy

Scarcity

25% buy

But this is the biggest paradigm shift since the printing press




And we must finally rid ourselves from the

obsession with selling copies




The business of

just ‘selling copies’ is OVER




The new business is

selling ACCESS first, and then

some more...




Based on these principals

• Not Prevention but Participation

• A new, collective license for the digital use of music - similar to the broadcast (i.e. radio) license

• Remuneration must be based on monitoring, tracking, and accounting of ACCESS and USE, not just on Unit Sales (or Performance)

• Copyright is the principle, Usage Right the reality




Challenge your assumptions Practice un-control... and get more $$ Think ‘Music’ not COPIES Lose the obsession with hits Appoint new, clued-in leaders




So:

G e t o u t

I N F R O N T

o f a c h a n g i n g m a r k e t p l a c e -

N O W




Gerd Leonhard ‘Music & Media Futurist’

www.mediafuturist.com www.gerdpresents.com

CEO, www.sonific.com

Thanks for listening- and talk to me!

[email protected]

www.gerdleonhard.net (Blog)













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