a future for the music industry and all artists, smart content
DESCRIPTION
Something all artists need to know about. A new music format that replaces CD, MP3 etc. Something that will provide proper transparent auditing of the value of content ( it's access ) and a framework where the discovery and filtering of music and all content files is as smart, fast and relevant as our lives today Built by a musician for the good of all musicians. Share the love Finbar O’HanlonTRANSCRIPT
New Music Initiative
The Next Genera,on of Music, Content and Value
The New Music Initiative is a group of Artists, Technologists, and Creatives that are passionate and driven to improve the experience of listening to making music.
This presentation is designed to inform musicians and their representatives of a monumental change to music that will positively affect the the life of every musician and the value of the music they make. A new music format built on globally patented technology that simplifies how the world engages with content, and how content producers manage the value and access of their content.
If you read on you will discover that Content is DUMB, it cant protect, control or report on the access of the content. You will also see the valuable music artists create is stored inside this content.
“We recognized content is the cause of many issues facing the distribution, monetization and enjoyment content. How did we fix it we built an engine that makes content SMART..” - Finbar O’Hanlon
The New Music Initiative
Smart Content Provides a change where groundbreaking technology brings forward a new music format, the evolvement from the CD and MP3 file. A format that for the first ,me : • Protects ar,sts intellectual property from a central loca,on • Gives ar,sts ul,mate control over every aspect of their recorded works • Provides ar,sts with transparent and accurate data as to every play of their content on
virtually any network or device • Provide new methods of mone,za,on • Provide the ability to re release en,re catalogs of musical works • Provides the next genera,on of listening experiences for consumers.
Most importantly this format that does not threaten any exis,ng rela,onship with a Label, manager, publisher, just a format that makes content smart, easy to deal with and valuable again.
Why is this important to Artists? There are a lot of people making a lot of money off of music and their revenues are geLng bigger and bigger. Here are some of latest news. • Swedish Music Industry revenue 2013 US$194.2 million digital revenue from 8% to 70%
source IFPI • Spo,fy Paid US$500 million in royal,es in 2013 source spo,fyar,sts.com • Pirate sites ad revenue US$227 million source IFPI • Apple Beats acquisi,on US$3 billion( Labels, Universal, Warner, Sony ) no ar,sts to
share in revenue source digital music news
• Music Industry’s Digital revenue US$5.9 Billion source IFPI • VEVO projected revenue 2012 of US$280 Million which was up from2011 revenue US$
150 must have been further upped by its current figures serving 5.5 Billion views per month of music video. Up 33%
• YouTube Ad revenue 5.6 billion in 2013 a 50% increase source forbes and f.com
There are companies that make money from selling data based on how people interact with digital content. Currently this market is approx US$ 6.6 billion last year.
How much GROWTH in money did you the ar,st make last year? .
Smart vs Dumb People are “Smart” They dynamically establish what they want and how they want it. People are flexible in their consump,on palerns and how they choose to engage with or consume content can drama,cally change the value of that media. Technology is ”Smart” Technology allows companies to evaluate and adapt to meet the shifing preferences of people. It can be used to understand how content is consumed. Companies that use technology for this purpose are typically market-‐leaders in their sectors, worth billions of dollars. Content is “Dumb” Content is designed to just play. Content does not protect an ar,sts recorded works for being illegally used, does not accurately report on its usage and provides no control. Content is inflexible from being mone,zed in any manner, it takes up space and is not portable across devices. This is NOT how it should be…
If Content was Smart If Content was “Smart” It would be able to protect and establish an ar,sts value (recorded or produced works). It would provide control in such a manner that any unauthorized usage could be immediately stopped from occurring. It would also provide new capabili,es that fundamentally shifs the control of content back to the ar,st or representa,ve whilst providing new levels of innova,on that revolu,onize content discovery, filtering, and improve the listening experience. If content was smart it could adapt to suit the people that experienced it. When content is relevant to the listener and CONTROLLED BY THE ARTIST a new horizon of value is created.
Smart Content Is now a reality.
Welcome a
New Music Industry
How do you make content Smart?
You first have to understand what digital content is. To do that you have to understand the structure of a digital music and video file, then… You build a new format -‐ Smart Content.
Digital Media (Music and Video) files just contain data. Data is created in music terms when an analog sound is being converted to a digital language made up of ones and zeros. For a digital file to be played back as music the data has to be turned back into an analog source. An example of this is when you play your guitar into your Protools software through an interface. The Guitar creates sound pressure (analog) pickups create the electrical current (analog) goes to a soundcard to be converted to digital (numbers) The soundcard translates the electric current to ones and zero’s (data) and the quality of the soundcard is how good it is at translating the incoming sound to ones and zeros (data). Simply put, people speak languages while computers speak data. Inside Digital Music files (Mp4) there are two areas that you can’t see… One area is where the music is stored (Artist Data) and the other area controls that playback of that music (Format Data). The diagrams on the right show the structure of content. The Format Data is in Red and Green and the Blue area shows the actual valuable music.
Format Data
Ar,st Data
Making Content Smart The inside of Digital Music
Analog to Digital
When you record your works it is typical for your works to be turned into a digital recording. A digital recording is produced by converting the physical properties of the original sound into a sequence of numbers, numbers which can then be stored and read back for reproduction.
Making Content Smart
Content does not communicate it simply plays, It’s fundamentally DUMB. In order to make content SMART, you need it first to be able to communicate with any party or any platform. To control content you need to remove the valuable artists IP from the file and have it delivered once paid for. Why? Digital content has made it easy to illegally utilize and share the valuable IP because the valuable component that represents the artists works (IP) is included in the file. This flawed framework, coupled with no communication from the file – creates a status quo where there is no accurate way to understand the usage of the content. Smart content files are transparent and provide value to everyone who utilizes its content. The IP is in a format that is unplayable on any device and gets delivered at play request where it is reassembled back to music at the device. When the IP is removed from the content, songs take up no storage, they play across any devices or standards and take up no real space. For the artist the IP comes from a single controlled location.
The New Digital Format
Reinventing the format by which content is delivered marks a sea change in digital media. For the first time, content itself will be as smart as the platforms that deliver it. By providing the power of Big Data to audio and video, the industry can start to control the value derived from content and establish its own set of rules around how content is monetized.
•The Consumer wants to control the engagement and availability of music and content. They want content to be relevant to them and to be able to easily discover new and exciting media.
• The Artist or Rights Manager wants to control their intellectual property or recorded works in order to extract and enforce that value earned is returned to the artist or rights holder. They also want to be able to find and communicate with their fan base and be able to be found by people who engage with their content.
•The Platform (YouTube, Spotify, iTunes) wants control of the users on their platform and the services that they provide, this includes the financial inflows to the business.
• The Network wants utilization of data on their network and wants to control the financial accounts and billing of their subscribers.
The MX4 model is built from 2 successful workflows. Data and Virtualiza,on. Amazon, IBM, Oracle, Google -‐-‐ in fact the enterprise world -‐-‐ communicates this way. Linius is the first group in the world that has successfully managed to apply this workflow in order to produce on the fly content personaliza,on.
Linius Process “Smart Content”
Linius Process “Smart Content”
Music Industry
How do you fix an industry that can’t be fixed?
You don’t…you reinvent it.
Music Content Today How do we bring value back to music?
You evolve the Music experience
mx
Music Content Today
Today, people consume more content than ever and ar,sts are making less money than ever. Control of an ar,sts revenue and therefore the value of the recorded music works is in the hands of the person who controls the data and the consumer who dictates how they want to use the content. If the data and end usage are the key control points, then the content itself should report, not the intermediaries. Smart Content changes the landscape and control. In todays technology driven world, every single ,me the work product of ar,sts is played on any device, the ar,st should know about it, get paid and be able to control how his or her works are u,lized.
Music Content Today
Todays technology can easily deliver this informa,on, cellphone companies can report every transac,on down to the second, where you were located anywhere in the world and where the transac,on originated from. How come this doesn’t happen? It’s not because of bad data! It is because fundamentally, the content is “Dumb”. Content has no method of repor,ng itself. Even the best data system cannot measure every transac,on across every usage model. The method of repor,ng is lef to organiza,ons who u,lize the content. These organiza,ons ofen have to pay based on the size of the usage data.
The “New Sound”
The New Consumer Format Smart content provides the consumer with the next advancements in Audio Formats. With all the advancements in the world today, technology that wins is the technology that makes our lives beler. Why is it that with the advancements in technology, that the advancements in music formats have go7en worse. The sound has go7en worse. Lets look at advancements in video in comparison VHS -‐> DVD -‐>Blu Ray all offered new features for a consumer and beler quality Visuals and sound with each evolvement in the format From special features to DTS sound. With Video the experience is greater as technology evolved Does this make sense to anyone? “Dumb content” cannot protect, audit, or control an ar,sts intellectual property nestled within the Media format and to top it of the sound quality has golen worse.
The “New Sound”
OK so what is the New sound?
New Sound is a term to describe a new listening experience. From streaming 24 bit audio, which opens a new level of dynamic headroom, to content giving access across devices and networks, to content that can provide feedback so content that the listener will enjoy can find the listener ( discovery) to listeners wanting to EQ or change stems of a mix smart content provides a host of new features that can bring about the change in the listening experience.
Stems do not remove control of how the music is intended to be heard it merely provides the ability for stemmed audio to be treated individually in a manner that the artist or label is happy with . It is controlled from the artist. Either as a special feature or for listening over an entire album the ability for a listener to hear the artists works in a way never before heard is a significant reason to usher in the new format. Whether through a series of Presets, presets which can be shared, provided by band members or even through an interface to be designed by equipment manufacturers tis ability provides a wealth of value for artists, consumers and manufacturers of consumer audio equipment.
Think about this.
As an artist, if you choose the best engineer in the world at the best studio in the world,
Why do people then apply their own EQ. or listen to this production in a poor quality mp3 format?
Why do people buy better speakers, better headphones? Is it for better sound?
Better sound for who? The listener?
People like to consume, they like features. Does every Blu Ray Watcher watch all of the special features, Does everyone use all of their features of their car or device. No, but still if asked people will assign value to these features whether they use them or not.
Too Much Choice For a long period of time listening to music was simple: you had your LPs, Cassettes or CDs. No matter how many of them you had in your collection, it was easy to understand the music you had and the music you didn’t have. Then came the Internet, and all of a sudden there were too many choices. Between the listeners own collection and the music available on different streaming services, there was now too many decisions to make in finding and buying music. Confusion reigned as to why the music I already own wont play on these new internet connected devices. A picture further muddied by why the music I bought or want to buy is free on YouTube or on streaming services. The Internet started an addictive cycle of craving music. The format of digital music allowed the reproduction of the music without any real barrier, causing untold issues to the music industry and those that create in the face of massive piracy. The platforms met this craving by offering music and video content for free. They did this using a reflective business model. The removal of the value of content was the new value in building intelligence. This intelligence is traded at a much higher value than content. The impact of this action was to start to educate consumers that music was now free or had little value. With this model in mind, it’s easier to understand that every time a song is played it has value. The trick is to work out where the value is being attributed and how that value can be understood, tracked and billed and what the value is to the intellectual property owner.
There are a lot of people making money off of the music artists
create, unfortunately the artist is most likely not one of them.
The Reflective Business Model
In understanding where the transactional value is in music and content lets highlight a transactional model we call the Reflective business model. We call it reflective because much like a two way mirror its viewing capabilities are not obvious to the uninitiated. The data driven from the consump,on of content is a major financial driver for many of the worlds largest organiza,ons because this consump,on provides intelligence. Intelligence that helps drive adver,sing, helps manufacturers in the building of new products, helps forecas,ng sales based on consumer habits. So how much money do music arBsts and the industry gain from the intelligence gathered around the consumpBon of this media? A share in the value of the adverBsing systems that provide relevance and the data that is traded based on the content that arBsts provide. How is the split determined? Are you happy with your share of this revenue? When firms like eMarketer expects YouTube's ad revenue to total $5.6 billion this year, a 51% increase from last year. YouTube a site that provides content for free to consumers and sites like Twiler founded just eight years ago, is worth more than $18bn with revenue for the first quarter of 2014 totaled $250 million, an increase of 119% compared to $114 million in the same period last year, doesn’t it make you ask how do these plasorms make money
Let’s look at how twiler makes money • 'NaBve' markeBng • Almost all of Twiler's revenue -‐ about 85% of it -‐ comes from adver,sing on its site. • There are three main ways for a company or an individual to adver,se on Twiler: by promo,ng a tweet that will appear in people's ,melines,
promo,ng a whole account, or promo,ng a trend. • Twiler tends to charge its adver,sers according to the amount of interac,on their content generates. • Anything that disrupts the user experience might reduce engagement from users, which in turn can put off adver,sers, Ms. O'Reilly says. • • Using the 'firehose' • Data licensing is Twiler's second major revenue stream. • The micro-‐blogger sells something known as the "firehose", its public data, which ofen adds up to about 500 million tweets each day. • Companies can dive deep into the data to analyze consumer trends and sell their insight on to other brands and companies. • With sophis,cated analysis companies can learn detailed and specific informa,on about their users that, because of the volume of data, an
ordinary user or company would not be able to get.
Invisible Business Model
• YouTube makes money because they attract around one billion unique visitors every month to view content that artists and other content creators create ( FOR FREE ). Because of this influx of viewers advertisers are willing to pay to get in front of that large, captive audience.
• YouTube gives advertisers what they want by letting them focus in on a variety of specific demographic markers. For example, advertisers can choose to market to people based on their gender, age, location, and interests. They’ve also smartly developed their website to support and show ads across multiple platforms, including smartphones, tablets, and computers.
• How much money does YouTube make off its advertising? It’s a hard question to answer. Owned by Google since 2006, YouTube’s financial numbers aren’t publically published, at least as a standalone. But estimates for YouTube’s 2012 gross revenue were at $3.6 billion. And considering that Google made $14 billion in revenue in the second quarter of 2013 alone, YouTube and its ad sales are clearly just one more piece in the very large, very successful Google machine.
What’s wrong with this picture? Where are you?. Under Creators it states You Tubers, Brands Agencies, Networks. Is that you? If an artists works is valuable in the harvesting of this data what would happen to the Value of companies such as Google (YouTube), Spotify and others if “Officially Licensed Music “ came into play. An initiative where every avenue of exploited value attributed to an artists works is evaluated and an artist or label is rewarded? What would happen if an artist removed content from sites that make them no money and devalue their works, then sends cease and desist letters to companies stopping them from finding and serving content for free, content that is monetized elsewhere, then to top it off places advertisements in major publications around the world stating that these platforms are now not the place to find everything. What do you think this would do to these companies often huge multi billion dollar market valuations?
Big Data
Big Data is a word used to technologies designed to extract value from very large volumes of a wide variety of data. Companies like Facebook, twiler, and Google specialize in the harves,ng of this informa,on to build more relevant services to its consumers and to provision this data to a hungry world all looking to understand palerns that demonstrate how these people will consume informa,on, and how products can be improved. On the earlier slides we talked about how some of the worlds leading companies leverage media content as a tool to acquire data, data that can be used to generate revenue or build products and services that enable relevance in adver,sing back on their plasorms. • In some case there are some real challenges in alaining this data. Ofen data is in different silos, on different networks and because
people switch networks and plasorms when the are consuming media a plasorm is limited by the consumers life of the plasorm.
• Smart content allows for Big Data to be embedded inside every piece of content, With the new format a new file wrapper is constructed every ,me someone hits play.
• This would mean that digital content can be a Big Data Agent and this Big Data agent could carry and deliver informa,on from the media itself. A centralized set of data every ,me the content is used and the data could be as rich as available from the device where the content is played.
• Based on the requirements, a live stream of data from a consumer in a central loca,on would provide incredible value to this community, a community you can see has immense value built off data.
The market for tradi,onal business analy,cs sofware is large and well established, IDC es,mates an aggregate spending of $35.1 billion in 2012 in this worldwide market sector. The internet, of course, is comprised of data — all kinds of data. However, the vast majority of new data being generated is unstructured. This means that more ofen than not, we know lille about the data,
Centralized Big Data Agent
Smart Content brings an amazing opportunity to the music industry to control and harvest Big data from within smart content. An opportunity to hold the keys to the value of content when it comes to business intelligence. To be able to understand and parse Data from within media at this level is something only possible with Smart Content. According to Gartner, Inc., organiza,ons are expected to spend $81.0 billion on business analy,cs and related services in 2014. If the music industry and the ar,sts can capture and provision big data from within smart content then the en,re industry has a new business model. Intelligence. Smart content has to be driven as an industry initiative. The platforms that currently have control wont promote smart content, as they are focused on tools that give them control and keep people at their platform
Data and Transaction flows
New Music Initiative
For more information Contact Finbar O’Hanlon 917 828 1962 [email protected] Dave Weiderman 818 288 6588 [email protected] Patent # 12/670430 United States 2008288676 Australia 159164 Singapore 200880110364.8 China 08782938.8 Europe