This is a version of the slides I presented at a talk I at the SKAP / DFAM event in Stockholm, Nov 28, 2013 see http://www.futuristgerd.com/2013/11/28/my-presentation-at-dafm-skap-event-in-stockholm-today-pdf-a-futuristic-outlook-on-the-creator-consumer-the-business-in-between/
2. Most of what I am about to share
with you is actually good newsâŚ
Photo by Dr Case - http://ďŹic.kr/p/5ďŹGgf
Photo by Michael Cordedda - http://ďŹic.kr/p/9cDmTe
6. @gleonhard
Global Transformation driven by Digitization:
When Products become Services and Experiences, the creator becomes even more crucial
Product
Service
Experience
7. All media is shifting from protection to engagement
Photo by WallStreet Journal.com
8. Maybe this is a
good time toâŚ
rights licensing
across Europe?
@gleonhard
13. Value Axis
The inevitable result of digitization: lower per-unit revenues
- Offensive Innovation is crucial Potential âDigital Audienceâ
Revenue per 'Unit'
100
75
50
CD &
Vinyl
iTunes
25
Spotify
0
Pandora
Youtube*
@gleonhard
14. Music is not unique in this: massive consumer
empowermentâs inevitable consequence is price reduction
@gleonhard
15. As distribution becomes abundant, new things become scarce
Abundance of
ways to âget musicâ
New
Scarcities:
Attention
Brand
Relevance
Context
Timeliness
EmbodimentâŚ
16. The Music Industry Curse: Ego
Photo by Homies In Heaven - http://ďŹic.kr/p/d6Ff2C
17.
18. Industrial & Mechanical ⯠Digital & Exponential
Controlling Distribution ⯠Monetizing Attention
Largely monopolistic EGOsystems ⯠Collective ECOsystems
19. âThe greatest danger in times of turbulence is not the
turbulence, itself, but to act with yesterdayâs logicâ
*Peter Drucker
http://bostinno.streetwise.co/2012/08/27/pirating-music-kill-a-horse-instead-7-crimes-not-as-bad-as-illegally-downloading-music/
20. Many new value generatives i.e. a âRoyal Familyâ
http://www.zimbio.com/pictures/APDwKZ3i-RJ/Nobel+Prize+Award+Ceremony+2008/8XVWQBpueY7/King+Carl+Gustaf+XVI
21. Digital Money is a certain future: not if butabout whereâŚWHO
No longer about distribution but when, attention
22. In large, hardwaredominated markets
(US, UK, Germany
etc), âfake
ownershipâ of
music used to
work - but fast
decline is certain!
23. There is no long-term mass market for digital single downloads but mobile music and download-HD-to-keep as a premium product has great potential !
25. Managed dissatisfaction is not a sustainable business model
*Reed Hastings, NetďŹix
http://evolver.fm/2013/07/23/paid-music-downloads-are-declining-but-why/
$
$
âManaged
Dissatisfaction â
Image via Popsci.com
27. Distribution as a key revenue driver or as
competitive advantage is a âburning platformâ
Image of BP platform via US Coast Guard
28. Distribution as a key revenue driver or as
Brand & Audience is a âburning platformâ
competitive advantage
Image of BP platform via US Coast Guard
29. I am happy to pay cash (or data i.e. attention) for highly personalized,
timely, social, meaningful, relevant, high-resolution content but it must be on 100% irresistible terms: simple, easy, fair
30. The message is clear: consumers want cheap, bundled or âfeels
like freeâ access ďŹrst, and will only then consider going further
2010
http://musicbusinessresearch.wordpress.com/2013/10/18/is-streaming-the-next-big-thing-what-consumers-want/
31. RYTHING
ATS EVE
EE BE
FR
UTION IS
DISTRIB
OLLING
CONTR
SENTIAL
ES
EVANCE
ST-REL
LUE-TRU
VA
ERVICE
TEXT-S
CON
EPING
AND KE
RNING
EA
ENTIAL
IS ESS
NTION
ATTE
33. Yes, we already have a model for this
but the legal structure of music commerce must be transformed urgently
34. A âŹ10 Billion recorded music market in Europe?
1⏠per Internet user in Europe / month for basic streaming & ofďŹine service
Approx. 600 Million Internet users in Europe x 12 = 7.2 Billion per year
This would be 40% of current global recorded music earnings in 2012
The 1 ⏠could easily be paid for by telcos / ISPs / portals (advertising)
Up-selling to 10+ premiums could yield another 30-50% revenues
Add another 400 Million mobile phone usersâŚ
35. Music is indispensable to the next generation media powerhouses
âŚand these
guys already
see music as
disembodied,
mobile, cloudbased âadded
valueâ âŚ+++
40. The CD (physical media) is quickly disappearing in the rearview mirror: (em)brace
âManaged dissatisfactionâ (such as iTunes) wonât make the pie bigger
Beyond a doubt, streaming and âaccessâ is the new ownership: new laws needed!
âAccessâ may result in a 90% reduced âunit priceâ but has x1000 audience
We need digital music licenses that enable Billions of users to contribute $âŹÂŁ
Many new premiums can be offered on-top of âfeels-like-free accessâ
The new (old:) âembodimentâ of music is the artist and the brand, themselves
Social media, video, mobile (SoViMo) are huge opportunities: get engaged!
In the EU, we need offensive innovation, real leadership and hyper-collaboration