Gerd Leonhard, Digital Music Entrepreneur & ‘Music & Media Futurist’
www.mediafuturist.com www.gerdpresents.com
CEO, www.sonific.com
The Future of Music &
Music Like [email protected]
www.gerdleonhard.net (blog)
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Today, 2 things:
1. Digital music distribution is
out of control - and that will
be a very good thing for all
of us!
2. ‘Music like Water’ will make
all of us a lot more money
than “Music on Plastic”
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
New technologies usually disrupt severely but always make the market bigger
Big technology changes always take longer than we think, but then whe they do happen, they happen
much bigger than anyone expected... and that time is NOW.2007 is a year of drastic changes.
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
THIS is the end of controllingdistribution - and the beginning of a new boom!
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Controlling music is an obsession of the pastParticipating in the Use of Music is the Future
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
So why do we still have DRM?
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
Today, we are here
You think music sharing is out of control now ? Think again.....
Tomorrow: SHARING x 1000
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
8
Gerd Leonhard, Music & Media Futurist [email protected]
The reality:
75.000 different devices that play MP3 files
Approx. 75 devices that play DRM’ed files
Gerd Leonhard, Music & Media Futurist [email protected]
Today
Soon...
75-80 Million devices
1 Billion+ devices
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
So...
Which of the two options creates a better market place, benefits everyone, and will make a ton more $: an open format, or a closed format?
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
The business models that empower the end users are
the ones that will win
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Some smart stuff from PWC
The Reality: Finding and Being Found is what generates the $$$$ - it’s the BRAND not the COPY
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
F r o m ‘ T h e N e t w o r k ’ t o
N E T W O R K E D
Gerd Leonhard, Music & Media Futurist
I click - therefore I create value....
I program my
media --- it does
not program me!
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Second: the issue of Ubiquity - Music Like Water
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Water...
• Everybody uses everybody pays (but not at each and every point of use)
• Tap water is ubiquitous and ‘feels like free’, but ‘better water’ generates $100 Billion per year
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Worldwide, almost a $100 Billion per year is spent for something you could also get for free!
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
$ 0
$ 45
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
How is Music... Like Water?
• Music is a basic need, to all, not a luxury (for some)
• Everybody uses, everybody pays (but it can ‘feel free’)
• A ‘right of access’ for all, anytime, anywhere
• Premium water costs extra, too
• ‘Normal’ use ‘feels like free’, excess use costs extra
•Ubiquity INCREASES value
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Music Like Water would give us growth... like this:
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Why buy bottled water if tap water is free?
• Guaranteed quality
• Premiums such as better sound
• Added values and more options (interactivity)
• Timeliness (not yet on tap everywhere)
• “It’s special”
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
Ubiquity
23
Internet
95% buy
Scarcity
25% buy
But this is the biggest paradigm shift since the printing press
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
And we must finally rid ourselves from the
obsession with selling copies
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
The business of
just ‘selling copies’ is OVER
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
The new business is
selling ACCESS first, and then
some more...
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Based on these principals
• Not Prevention but Participation
• A new, collective license for the digital use of music - similar to the broadcast (i.e. radio) license
• Remuneration must be based on monitoring, tracking, and accounting of ACCESS and USE, not just on Unit Sales (or Performance)
• Copyright is the principle, Usage Right the reality
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Challenge your assumptions Practice un-control... and get more $$ Think ‘Music’ not COPIES Lose the obsession with hits Appoint new, clued-in leaders
Gerd Leonhard Music & Media Futurist www.mediafuturist.com
So:
G e t o u t
I N F R O N T
o f a c h a n g i n g m a r k e t p l a c e -
N O W
Gerd Leonhard, Music & Media Futurist www.mediafuturist.com
Gerd Leonhard ‘Music & Media Futurist’
www.mediafuturist.com www.gerdpresents.com
CEO, www.sonific.com
Thanks for listening- and talk to me!
www.gerdleonhard.net (Blog)