content 2.0: free vs paid: futurist gerd leonhard @ tokyo 2.0
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Mobile broadband Internet access and cheaper smart-phones and ubiquitous mobile devices are making sharing of digital content easier than ever before. Where is this going, once 2-3 Billion people are connected? Who will paid for what, why, when? What about the trend towards Free? Freemium? Feels like Free? Content 2.0 explained. More at www.mediafuturist.com Videos at www.gerdtube.net Follow me on Twitter: www.twitter.com/gleonhardTRANSCRIPT
www.mediafuturist.comtwitter.com/gleonhard
‣ Futurist‣ Strategist‣ Author & Blogger
Gerd Leonhard at Tokyo 2.0 August 24, 2009
Free vs Paid: the Future of Digital Content
‣ Understand‣ Imagine‣ Design
www.mediafuturist.comtwitter.com/gleonhard
Clients such as Google, Nokia, DDB, Sony BMG, Orange /
France Telecom, BBC, ITV, RTL, The European Commission, IBM,
Omnicom, Siemens...
What I do:
www.payingwithattention.com for free downloads
Connected people ‘consume’ differently!
Sharing is the key driver
Real-Time Everything
The Link EconomyCult(ure) of Participation
In the Content Industries,
Command & Control
is irreversibly becoming
Cordinate & Cultivate
Content Futures: Copy $ down, Attention $$ up
0
2.5
5.0
7.5
10.0
Was Is Soon Near Future Mid-term Future
Copy Based Revenues Attention Based Revenues
The challenge: Creating New Models!
Was Is 2 years 5 years
Content Consumption (all)Revenue PotentialSuccess with Traditional Content Models
Mobile: Great User Interface & User Experience changes everything
So will people read like this?
2012 Book Publishing Revenues:
$43 Billion in U.S. (BISG) $120 Billion Global (est)
Thanks to Flickr.com/alextorrenegra
Only an average of 20% a newspaper’s income is spend on CONTENT CREATION.
+
=
+
Our new reality: Listen / Use = Copy
Flat-rated & Bundled Content
What are we paying for, here...?
Not to eat all the food... but to get Access!
Now, Content is first a Service & Experience, and only then (maybe) a Product.
Bundling is the Future
It used to be...
Premium“Option”“Extra”
Default
Soon:
The new ‘Normal’
The New Premium
If Access replaces Ownership as Default...
AccessEmbodiment
Experience
AccessBundles
How will access to content be paid for?
Paid by 3rd PartiesFlat-Rates
AttentionTransfer
A key task now - and even more so, in the future:
A crucial shift in the content industries:
• Content ‘Pre-Web’: Presenting - and selling - professionally produced Content
• Content ‘Web-Native’: Presenting - and selling - Context, People, Relevance, Packaging, Timeliness - and many different kinds of Content!
New Generatives
Free gets you to a place where you can get paid.Quote by Fred Wilson, Union Square Ventures www.avc.com
Free gets you to a place where you can get paid.
• Provide free and easy access to content to anyone that is interested *
• Subsidize the free content with next-generation advertising, affiliates, data-mining and other ‘New Generatives’
• Addict the users to the offerings by providing more and more values all the time *
• Offer a myriad of ways of getting further engaged & attracted to Premium offerings
• Convert between 5%-40% of free users to paying users
‘Feels Like Free’ Content
Conversations
Attention
Data Creation Engagement
(Trans)Action
Crucial: the right when, how, where!
We need web-native toll-booth strategies
The 2-sided TeleMedia Model - starting with Digital Music
Content Owners
& Creators
Content Users
(fkaConsumers)
It’s hard to ‘own’ copies now but
You can still own the Context, the Meaning,
the Relevance, the Experience, the
Embodiment, the Timing...
The Future of Content
OpenMobile
FreemiumConnected
CollaborativeInterdependent
★ email me at [email protected]★ twitter.com/gleonhard★ facebook: gleonhard★ more presentations at
www.mediafuturist.com
Thanks for listening!