creating a new ecosystem- the future of the music industry

7/28/2019 Creating a New Ecosystem- The Future of the Music Industry

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Gerd Leonhard

Futurist, Author, Musician& CEO

TheFuturesAgency

Creating a newEcosystem:The Future of the Music Industry

@gleonhard@music2dot0


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The Future of the Music Industry The music business seems alot like the energy business :(


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The Music Industry has been ruledby EGOsystemsfor way too long


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The current Music Ecology is

unsustainable:Rampant inequalityTotal lack of transparency

Cartels & monopolies still prevail

Laws & policies paid for by lobbyistsIncreasing enclosure of The Common

Criminalizationof Consumers


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Piracy is now de nedas any act of non-

compliancewith rules policies,pricing, restrictions

and TPMs / DRMs...?

....whose economic losses...?


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They who can give up essential liberty to obtain a littletemporary safety, deserve neither liberty nor safety

*Benjamin Franklin


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Piracy...?

is the result of the 1% trying to enforceoutdated business models on the 99% is a temporary consequence of radical

consumer empowerment driven by ever-faster data networks and cheaper but evensmarter devices

the consequence of total market failure as a

result of pervasive ignorance and blindcontrol obsession by the incumbent players

CEO of MacMillan UK, April 2011, via PaidContent.org


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Restricting, protecting, preventing,disabling ... is asuicidal strategy


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But: the music business is entering a whole new era:

Mobile | Social | Cloud


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Welcome to the

SoLoMo-Cloud


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2017:5 Billion people, 75% mobile Internet,50+ major platforms, a250 Billion ad market


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We must rede ne the meaning ofSelling- in the future, what will it mean to sell music?


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Everyscreen is becoming somekind ofconnected TV or Radio


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A huge opportunity for bundlingmusic - andthen offer premiums


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By 2017, between 50% to 75% + of all mediaconsumption will bevia mobile devices (Gerds prediction)


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Total Unbundlingis inevitable


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With some exceptions, the business model ofmerelyselling copies of musicis


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Music .Toast Music. Future


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From one-to-many toMany to Many


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Like it or not: Free Access / Listening / Streaming / Downloading of music has become

a de-facto standard and a universal practice

h l h


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Touch. Play. Connect. Share.Access not ownership *

Th d fDi ib i h k


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The end ofDistributionas the keysuccess factor, metric and gate-keeper


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Access *not ownership

I i if3 Billi l it h d t l l t i


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Imagine if3 Billion peopleswitched to legal streaming*clearly, this will never happen without a collective, standardized, public, EU-widelicense

Lik it tf th t t t


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Like it or not:for the consumer,access to contentwill be muchcheaper than copies i.e. ownership

Source: Huf ngton Post

P i S i


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Up-SellingPremium-Services

New GenerativesAdded Values

Th N G i


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* Thanks to Kevin Kelly kk.org

Packaging and Interfaces

Curation, Filtering and SelectionSocial Context & RelevanceIntelligent AggregationAssisted Serendipity

Timeliness and Personal RelevanceQuality and Trust Guarantee

Customization and PersonalizationLocalization / ContextualizationCloud-to-Device Management

Advertising as Content (Branded Content)Gami cation

... and many more

The New Generatives*thanks to Kevin Kelly

Fl id F l Lik F F i |U lli


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Fluid + Feels-Like-Free + Freemium |Upselling

+

Build income streamsaround the Music


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Build income streamsaround the Music.Invent added values, pursuecollaborative business models


33/45Hyper-Collaboration Creators & Artists: we must embrace change and


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Creators & Artists: we must embrace change andfocus on solutions based on Collective Objectives

Th bl i t th


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The problem is not the pay -its the wall!

Source:

!

I th $ i d ti i g t d i ?


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Is there $ in advertising-supported music?


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Big Data will help to fundBig Music

W l d


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We are already..Paying with our Data

G i Di ti b i l


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Going Directis becoming...real

Ease of use + Choice + Price +


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Ease of use + Choice + Price +Added Values + Brand =$

It b t V l & E i t j t P i


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Its about Value & Experiences not just Price

We urgently need a Public Rights Logic that


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We urgently need a Public Rights Logic thatts our Digital Ecosystem

Without a public open standardized license


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Without a public, open, standardized licensefor digital music this is very unlikely to last..

The free markets wont x this


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The free markets won t x this.We need must-license provisions, public

oversight, regulation for acommongoal

T k b k th M i B i !


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Take back the Music Business!Business

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