the new generatives: selling music in a connected world
DESCRIPTION
My presentation at MidemNet 2010, in Cannes France. How to monetize music when the copy is free: Defining Monetization: 1.A real-cash transaction of any kind (often pre-consumption) 2.Revenue Sharing (usually post-consumption) 3.Non-cash remunerations 4.Upstream payments (Freemium)TRANSCRIPT
![Page 1: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/1.jpg)
www.mediafuturist.comtwitter.com/gleonhard
10 new Generatives: Selling Music in a connected World
![Page 2: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/2.jpg)
What I do: www.mediafuturist.comwww.twitter.com/gleonhard
Photo Credits: as indicated, or via iStockphoto
![Page 3: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/3.jpg)
None of these ideas will work if...There is no real merit, value and
uniqueness in what you doYou don’t have an audience (attention)You are not willing, or not able to talk
to your fans, all the timeYou really want to learn how to swim
but are still afraid to get wet
![Page 4: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/4.jpg)
Merit is where it all
starts.
![Page 5: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/5.jpg)
Merit, Quality & Uniqueness
AttentionConversion
Money
![Page 6: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/6.jpg)
Making money is a consequence of
Attention (not the other way round)
![Page 7: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/7.jpg)
Note: there is no one-fits-all recipe!
Not all Music is the same
Not all Money is the same
Not all Users are the same
Not all Cultures are the same
![Page 8: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/8.jpg)
1.A real-cash transaction of any kind (often pre-consumption)
2.Revenue Sharing (usually post-consumption)
3.Non-cash remunerations4.Upstream payments
(Freemium)
So what is ‘Monetization’?
![Page 9: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/9.jpg)
Getting Paid for Creation *Hat tip to Shelly Palmer
I payYou pay
3rd party pays
I pay
3rd party pays
You pay
I pay
3rd party pays
*constantly changing variations
![Page 10: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/10.jpg)
Expect extreme fragmentation of Music Commerce Models
![Page 11: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/11.jpg)
2 important distinctions 1) Monetize collectively
2) Monetize individually Flat Rates
Public Performance
Broadcasting& Webcasting
Bundles
BrandingSync Licenses
Revenue Sharing
Blanket Licenses
Music Sales
Many others (coming up!)
![Page 12: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/12.jpg)
Monetize collectively
Flat Rates, Bundles, Revenue-Sharing
Live-Concerts, Web-Casts, Virtual Shows...
Mobile Device Applications & Software
High Definition & Premium Versions
Community Premium Services
Many other New Generatives
Permission
![Page 13: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/13.jpg)
What does ‘selling music’ really mean?• iTunes sales• CD sales• Songs used in Ads or Games• Youtube clicks?• Spotify plays?• Last.fm plays?• Facebook or Mog ‘Like’?• Bookmarked song?• Forwarded link via email?
How will you measure success?
![Page 14: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/14.jpg)
The Music 2.0 Model
Artist / Creator
Business ModelsBusiness Models
Business Models
![Page 15: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/15.jpg)
Music Commerce 2.0: don’t try to sell what is Ubiquitous - sell what is
ScarceSource: Chris Brogan
![Page 16: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/16.jpg)
What is scarce? What could you sell?Users’ time and attention Offers that save time, and
award / keep attention
Curation and Selection Filtering, Context
Offers that save the users from the overload and filter-failures
Trust Offers that generate trust and create personal connections
Meaningful experiences Offers based on unique, personal, real experiences
Meaningful relationships Offers that provide for real conversations and connections
![Page 17: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/17.jpg)
Users’ time and attention Offers that save time, and award / keep attention
Curation and Selection Filtering, Context
Offers that save the users from the overload and filter-
failures
Trust Offers that generate trust and create personal connections
Meaningful experiences Offers based on a unique, personal, real experience
Meaningful relationships Offers that provide for real conversation and connections
![Page 18: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/18.jpg)
Sell via Twitter....?!
Source: Digital Media Wire
![Page 19: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/19.jpg)
How Dell does it Source: Paid Content.org
![Page 20: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/20.jpg)
? = $® + © = $
The search for New Generatives
![Page 21: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/21.jpg)
= $Networked Model
Broadcast Model
![Page 22: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/22.jpg)
When the browser becomes the iPod...
![Page 23: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/23.jpg)
Source: istockphoto
The Toll-Booth Challenge: how tomonetize ACCESS rather than copies
![Page 24: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/24.jpg)
From Chris Anderson’s “Free” Presentation
Source: Wired.com
![Page 25: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/25.jpg)
Free gets you to a place where you can get paid.Quote by Fred Wilson, Union Square Ventures www.avc.com
![Page 26: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/26.jpg)
“Free” only makes sense if you can actually convert
Source: Slideshare
![Page 27: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/27.jpg)
Charging for saving time...
![Page 28: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/28.jpg)
Free to Paid: Examples
![Page 29: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/29.jpg)
The future is no longer binary....
It’s fuzzy.
Source: Chris Anderson / Wired
![Page 30: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/30.jpg)
versus
It’s not either... or!
![Page 31: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/31.jpg)
Hybrid Models in many variations
![Page 32: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/32.jpg)
0
25
50
75
100
Was Will be
Price of legal copy’Number of legal, known, engaged UsersPremium Buyers (i.e. converted users)
Music Pricing Futures
![Page 33: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/33.jpg)
The Mobile & Social ‘Consumption’ of
Music is the #1 Growth
Opportunity
![Page 34: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/34.jpg)
Music Products
as Software on Mobile Devices
Source: Gigaom
![Page 35: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/35.jpg)
Mobile & Social: the key opportunities
![Page 36: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/36.jpg)
The next format shift: Music as... Software!
![Page 37: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/37.jpg)
Examples
![Page 38: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/38.jpg)
New packages... new $$
![Page 39: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/39.jpg)
My top 10 for ‘Monetizing Music’from music products: downloads, CDs etcfrom music services: streaming, bundles, revenue sharing, flat-ratesfrom broadcasting & public performancesfrom licensing: synchronization / B2B dealsfrom branding & sponsorshipsfrom live performances, concerts, eventsfrom virtual concerts etcfrom virtual goods (licenses)from new kinds of ‘stuff’ (merchandising etc)from direct-to-fan services
![Page 40: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/40.jpg)
Direct-to-the-fan offerings
![Page 41: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/41.jpg)
Mike Masnik (Techdirt) nailed it, last year
![Page 42: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/42.jpg)
The process
1.Attract the right people by offering relevant Content
2.Get and hold their Attention, build Trust
3.Think Followers not Users4.Offer added values to
convert followers into $$
![Page 43: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/43.jpg)
Source: STLPartners / Telco20.net
The Vortex Principle
DownstreamUpstream
![Page 44: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/44.jpg)
The mission: get the vortex to spin. Connect upstream and downstream opportunities.
![Page 45: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/45.jpg)
Upstream Revenue Opportunities: Some Examples
•High-Definition Content (Classical, Jazz, Concerts...)•Concert downloads (after attendance, or without)•Virtual concerts, events, clubs•Virtual goods (e.g. wallpaper, icons, greetings etc)•Fan packages (direct connection to artists, pre-
releases, customized editions, special privileges etc)•Special products 2.0: compilations, audio-video
packages (see SoundWalk), mobile applications etc•Next-generation physical products (e.g. 2 TB
interactive & connected DVD+)•Custom-made, on-demand merchandising (see Nike+)•Many more that are yet to be invented...
![Page 46: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/46.jpg)
Sell downloads, CDs... Copies
Selling copies is only the tip of the iceberg
Yourtask: to
define and exploit what’s below!
![Page 47: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/47.jpg)
T h e I n t e r n e t
![Page 48: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/48.jpg)
Please: forget most of what you know about Advertising
![Page 49: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/49.jpg)
About Advertising and $ for MusicYes, it has been disappointing up to nowAdvertisers are usually 5 years behindGlobal spend on Ads: ~ 700 Billion USDEvery large audience can be monetizedMobile, video and social media ad budgets will dramatically increase in the next 18 monthsIt may take longer than anticipated - but will end up much larger than we thought!
![Page 50: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/50.jpg)
Yes, there are serious $$ in Advertising
![Page 51: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/51.jpg)
•~ $ 900 Billion USD Global Advertising Spend in 2012
•30-50% shifting to digital media / interactive / mobile
•Opt-in, personalized, targeted Advertising = Content
• Ads have always paid for Content
![Page 52: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/52.jpg)
Virtual Items: a huge opportunity for Music!
![Page 53: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/53.jpg)
Where are the
new markets?
![Page 54: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/54.jpg)
Do get into Branding you have to be a ... Brand!
![Page 55: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/55.jpg)
Rivers of Content - big Opportunities in:
![Page 56: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/56.jpg)
The New Generatives
5%15%
15%
10% 20%
15%
20%
Content SalesSelling ContextSelling CurationSelling TimelinessEmbodiment / PackagingSelling RelevanceOthers
![Page 57: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/57.jpg)
Action Spots (Summary)• Mobile (Applications!)• Advertising / Revenue Sharing (e.g. Social
Networks, Search, Portals & Communities)• Flat Rates & Blankets (fka Broadcasting, now:
Telecoms, ISPs and mobile operators)• Synchronization (TV, ads, movies, games)• Branding & Sponsorships• Virtual Items• New Music Products (RBT etc)• Up-selling from ‘free’ (High Definition, AR etc)• Customization & Personalization• Virtual concerts & events
![Page 58: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/58.jpg)
As Steve Jobs says:
Stay Hungry. Stay
Foolish.
![Page 59: The New Generatives: Selling Music in a Connected World](https://reader031.vdocuments.mx/reader031/viewer/2022020217/544f200aaf79595e6a8b496f/html5/thumbnails/59.jpg)
email me at [email protected]
twitter.com/gleonhardFacebook: gleonhardmore presentations at
www.mediafuturist.com
Thanks for your time!