Martyn Warwick from TelecomTV news has some very nice and succinct comments, as well as some recent stats, on the bizarreness of the French HADOPI law. The juiciest stuff is excerpted and commented below. Enjoy.
A new study carried out by the University of Rennes and focused on the illegal downloading of online music and video in France reveals that it grew by three per cent between September and December 2009 - despite the noisy and bad-tempered passing of a contentious law designed to outlaw the practice.
The report shows that 30.3 per cent of all Web users in France illegally downloaded content over the quarter. Over the period 1 July to 30 September it was 29.5 per cent.
What the Rennes University work throws into stark relief is the feebleness and structural shortcomings of an ill-conceived piece of legislation that was foisted on the government by intense lobbying by vested interests within the content industry. It was conceived in a panic and rushed through without any real analysis or understanding on the part of the legislators of the way the Internet actually works. That's because Hadopi 2 only targets P2P file sharing networks and completely ignores streaming sites. (My comment on access versus copy is here)
However, the numbers of people who watch and/or download video, film and music via streaming is growing rapidly, while the numbers who do so via P2P networks is in equally rapid decline.
The Rennes Report shows that the percentage of French Internet users who favor streaming sites rose from 12.4 to 15.8 between September and December last year. At the same time the percentage of those using P2P networks declined from 17.1 to 14.6 over the same period.
Even more interestingly, the study also shows that those who routinely
and frequently buy and download content legally also use illegal
platforms. It also comes to the conclusion that the suspension or
permanent removal of an individual's Internet connection will be counterproductive as many who do pirate content also pay for stuff as
well. Thus legal video and music sales would fall. My comment: I think this is the most important point: disconnecting those that are looking for content, those that are fans and interested in music, is a ludicrous idea if you actually want to sell to them! Protection is in the business model not in technology or the law. Regulatory capitalism will fail (quoting James Boyle here).
This nice-quality video was filmed on 10 am Sunday morning (ouch), January 24, 2010, at the annual Midem music conference, where I was giving a lecture on how I think record labels, publishers and artists can make money with music on the Internet, going forward. The slideshow was previously published here, but has been embedded below again, as well, so that you can click along with the video if you want. I really enjoyed the more intimate environment of the MidemNet Academy even though it meant that a lot of people that wanted to get in had to be turned away; maybe we can find a compromise for this, next year (150 people would be a good number of seats for this kind of thing, imho). This video is 55 minutes long and really packs in a ton of great "Music 2.0" stuff that I have accumulated throughout the year, so... dive in!
I will try to add this video to my YouTube channel as well but the 10-minute maximum rule really makes this a royal pain, so for now it's only available on my Blip.tv channel (you can subscribe to the free iTunes feed, here, in order to download all of my videos automatically) and as an audio-only version on my free iPhone and Android apps. Enjoy - and spread the word (use the options at the bottom of this post)
2 weeks ago, I launched my free iPhone app, followed by the Android version just a few days ago, powered by MobileRoadie in LA. Now that I am very close to the first 1000 downloads I wanted to share how I intend to 'charge' for the apps and the exclusive content that I plan to make available there. So here it goes.
As you may have noticed, almost all of my content is free, including this blog's full RSS feed, 65+ slideshows, 100+ videos, most of my books & PDFs, and, for now, the new iPhone and Android mobile apps. I make a living with speaking engagements, keynotes, think-tank events and seminars, advisory work, CEO coaching sessions, and various other, mostly fun things; and I am indeed very privileged to really enjoy my work and make a living at the same time (an usual combination, I hear).
I want to continue to provide you with lots of great and free content even though many (if not most) people have suggested that I should start charging upfront for my content. However, instead of going down the road of requiring you to 'pay before you get' my content, i.e. to pay for my apps via iTunes or the Android Market I have decided to deploy my own version of the often-cited 'Radiohead Model' (borrowed from the group's (in-)famous approach to selling their music for 'whatever you think it's worth'), i.e. you will continue to receive a lot of stuff for free but yes, you can indeed make a payment if you like what I do. And I would be delighted if you do.
So here, below, are 4 ways to return the favor, help me pay for my iPhone apps and to otherwise monetize (terrible word but appropriate):
1) You can go to my Lulu bookstore and either buy a dead-tree i.e. printed, packaged and shupped version of my books, such as Music 2.0 for $17.75 or Friction is Fiction for a whopping $60.40 (sorry for the price but it's a lot of pages, 4c, the cheaper b/w version is here), or any of the PDFs ranging from $2.50 to $7.50 (even if you already have it... that's OK, too).
2) You can go to Amazon and order my 'old' and first book "The Future of Music"which is still a great book (co-written with Dave Kusek); just keep in mind that since this book is owned and marketed by a publisher (Berklee Press) it is not really the most direct way to ship a few $ directly to me;) - but still very much appreciated. The audio version is here, btw. The self-published, Lulu-powered "Friction is Fiction" book mentioned above is also available via Amazon so I'd prefer you to buy that first, or ... just get both.
3) If you want to 'pay with attention' and give me some social capital rather than real money, that's OK, too (I shall ask my landlord to accept facebook points, soon, as well - seriously;).
To this end, I would suggest these mechanisms:
A nice, juicy blog post about my work, my presentations or my videos, or books
A nice review of my books (Amazon or Lulu) or iPhone / Android apps (Apple App store is good)
Nice comments on my slideshows or videos (incl. my Youtube channel)
4) Finally, and most efficiently, you can just make a payment for what you think my stuff is worth to you; and guess what - there is no limit! Use this button, below (Paypal). And you can do it more than once, too.
Fellow Futurist and Keynote Speaker Monty Metzger recorded this video while we were both attending the Monaco Media Forum in November 2009. Some bottom lines:
Giving fair and reasonable permission is a much better strategy than complaining about so-called digital piracy
To waive a huge stick at the ISPs, and to try make them responsible for solving the music industry's issues, is a very bad idea, and won't put money into anyone's pockets
The selling of mere 0s and 1s is not really a business anymore - it's no longer about distribution, it's about converting attention into 'new generatives'
The 2nd video is from MIDEM2009 and further elaborates on pretty much the same topics. Enjoy. RT.
I just ran across some really nice presentations from the O'Reilly TOC (Tools of Change) conference that went down in NY last week. I could not attend because of my trip to Brazil but this event looks like a great success, judging by these videos. Here is my selection of best videos:
As Google's Eric Schmidt said at the Mobile World Congress a few days ago: from now on, it's MOBILE FIRST. Right he is! He probably didn't know this (or disguised it cleverly) but incidentally my iPhone app, powered by the very swift and happening MobileRoadie people in LA, was approved 2 days ago and is now live in the app store.
The app will provide you with a much simplified and quicker way to access pretty much everything that I publish (now that's a scary thought), including my videos, my podcasts, my blog, my tweets, my lifestream, my images and illustrations, and of course my slideshows - pretty much everything but my bank account;).
Talking about 'bank': I will be creating a lot of app-exclusive content in the next few weeks, and will really build up my mobile presence in order to be ready for the iPad and other tablet devices which I intend to use for 'futuristic' publishing purposes, i.e. for monetizing my work in new ways. Therefore - and in keeping with theFreemium theme - the first 1000 users will get this app for free, afterward my costs will go up a bit and the app will cost a whopping $1.99.
So hurry and get your free version now, while you still can (several hundred have already been downloaded in the past 24 hours). I would also be delighted if you could share this news with anyone that may be interested; it looks like lots of students and university folks are already downloading it and that sounds like a good fit, too. Please re-tweet and spread the word.
I will, of course, offer an Android app as soon as MobileRoadie comes up with the goodies, and the same goes for iPad-ready formats (I have some very special plans for that... too early to share but... it will be exciting). As to the Freemium: I will probably try to offer both a basic, free version as well as a paid version, in the future - it all depends on the demand. You tell me.
Lastly, if you like this app and want one, too (does anyone not?), I do have some discount codes for the MobileRoadie platform - ping me to find out more.
Everyone in the content industry should watch this demo, below, of what the Wired guys are working on - it's fantastic food for thought; exciting stuff. And just gotta love Scott's Matrix-dude-like, gravely voice in beginning;). Well done, guys.
4 'IF' comments: 1) If the publishers can and will provide very addictive, immersive and interactive experiences at LITERALLY no-brainer prices or via bundled services (big 'if' here) 2) If the media companies and 'rights-holders' decide to get rid of all that crippling and legitimate user-insulting DRM and other technical protection models (remember, Protection is in the Business Model) 3) If the advertisers and brands are really going to fast-track their support for these kinds of new platforms 4) If everybody can finally resist the temptation to make this yet another 'walled garden' competition, albeit with prettier flowers....THEN indeed, we just may have something here. I'll be watching (+).
At MIDEM 2010, one of the leading music industry events held in Cannes, annually, I gave a talk about how other content industries (apart from music) are using the Internet to monetize.
The video is about 14 minutes long, and goes with the slide-show, below, and addresses these examples:
What will magazine publishers do with the new iPad and other tablet devices (examples from Bonnier, Wired and Sports Illustrated)
How Salesforce.com is making 1.29 Billion USD by selling access to the cloud
How OReilly's Safari Books is selling access to 15.000 technical books for $42 / month
How Zynga's Farmville social game (on Facebook) is selling 800.000 tractors as virtual items, per day
I am delighted to have been invited to hold a keynote at the International Newsmedia Marketing Association (INMA) prestigious World Congress in New York City, on April 26-28, 2010.
Here is what I will talk about (Tues, April 27, 9am): The Future of News, Publishing, and Media: How to Monetize Content In the Next 3 Years. "The challenge of how to monetize content in a digitally networked and
always-on world is growing more severe by the minute, driven by
constant advances in technology, smarter devices and faster
connectivity, as well as by drastic changes in consumer behavior,
worldwide. Can those analog dollars be converted to a much larger
number of digital quarters and dimes? Where will those next-generation
revenue streams come from, and how can you fast-track them? Can and
should copies be controlled, online, and if not, how do you “compete
with free”? How can “selling access to copies” be turned into real
money, not just page-views and social media buzz? What is the role of
advertising, mobile device makers, the ISPs, telecoms and mobile
network operators, and how will publishers position themselves in this
new “telemedia” ecosystem?" Hope to see you there!
Yesterday, the Net was buzzing with news from Warner Music Group's earnings call, with Edgar Bronfman announcing his intention to not license 'free' streaming services any longer. Rather than rant about this (as tempting as that may be), I thought I would just share some ideas with you, and with Edgar, on what else WMG could do to become.....well, WMG 2.0. Some of these ideas were initially presented to another major music company about 9 months ago, btw. I don't know where this ended up, though - stay tuned.
Gerd Leonhard’s unsolicited thoughts: Creating Warner Music Group 2.0
Dear Edgar, based on what I have learned of my 16 years in digital music, and distilled from the 2 music-specific books I (co)-wrote (“The Future of Music”, and “Music 2.0”) here are a few ideas on how I think WMG could reposition itself and achieve future growth:
1) Create and offer a complete, cutting-edge online platform for your artists, writers, labels etc. Let’s call this the ArtistOS. It should pretty much mirror what Google already does for Internet users, in general, i.e. provide free access to very powerful and inter-connected Web2.0 tools that used to cost 100s of 1000s of $ to build but are now provided free of charge. These tools could include things such as music widgets and embeddable flash players for audio and video, twitter-API based marketing and communication tools, connecting tools based on Facebook- & Google-Buzz/Connect, multi-site upload and updating tools (similar to TubeMogul for videos), text/video/audio RSS feeds and syndication tools, ad-insertion tools and production technologies (for widgets and web pages), mobile phone applications for quick-launching artist and label apps (see MobileRoadie!), general content syndication and CMS tools, Google Buzz, Tumblr- and Friendfeed-like services for artists, Google-analytics-like tools for tracking and analyzing web traffic, and much more. Building (or licensing!) these tools would require some dedicated resources but this would not be a huge undertaking in terms of budget since most of these solutions are based on existing APIs, feeds and various open source offerings. Having the ArtistOS available to anyone that works with WMG would be huge strategic advantage, and would greatly simplify marketing and promotion tasks, as well.
2) Define, publish and promote a Collective, Global and Open Licensing Platform. The biggest obstacle for strong growth in the Music 2.0 era is the utter lack of global licensing standards for the legal use of music on the Net, and apart from the admirable Jim Griffin - led Choruss initiative WMG seems to still be following the old-school path of ‘ignore & deny’, here. Not good. The current licensing procedures are causing severe friction in the digital content ecosystem, and represent a significant hurdle to innovation - and thus to creating and nurturing new revenue streams. WMG 2.0 could solve this problem by pioneering a standardized and collective licensing platform that is open to everyone, transparent, flexible, and revenue-share based rather than fixed-fee based, therefore allowing for liquidity in the new digital market place. Providing a public, standardized yet flexible and open license to all streaming-on-demand services would be a very good way to start this process - and the time to do this is now. Yes, I know, advertising revenue splits are not bringing in much money, now - but they are dead-certain to do so within 18-24 months, when up to 25% of all advertising budgets will be shifting to digital, interactive, mobile and social platforms. Have some imagination. Build the Future (don't keep asking for it to be delivered to you).
3) Vigorously pursue flat-rate and bundling scenarios for the licensing of your entire catalog in return for flat fee payments, RAND-based revenue shares and fair splits of advertising and other revenue streams (similar to what Google has done in China, TDC in Denmark etc). Licensing access to music, rather than (just) copies, is the only way forward in a connected, always-on world that already equals listening with owning. Switch from relying on scarcity to monetizing ubiquity and abundance, and invent new models that fit this. Generate new revenues by engaging with ISPs, telecoms, ICT companies. mobile operators and search engines. Drastically reduce friction. Embrace ‘free’ models as long as somebody will pay somewhere.
4) Develop (or license) and deploy your own mobile music applications, on all platforms (iPhone, Android, Symbian, Windows etc); make mobile applications the center piece of all marketing and selling efforts, worldwide - the future of music is mobile, period. Think of mobile applications as the new CD; and therefore of music as....software. Roll out applications for all new releases, and for all your labels and brand. Make the basic apps free, but offer very attractive ways to upgrade, in all territories. It’s all about the packaging!
5) In terms of future sales, think Freemium, and think access not (just) copy. Offer things that used to cost money (such as listening to a song, on demand), for what I like to call feels-like-free (i.e. in return for the users’ attention); just be sure to find ways to convert 20-50% of those users (aka the friends, fans and followers) to all kinds of new premium services, such as high-definition versions, concert recordings and web-casts, special products, digital compilations etc. In addition, dramatically lower the price for physical products while providing all kinds of premium products - again, focus on selling access to music not just products.
6) Investigate the concept of crowd-sourcing new talent. Use the web’s increasingly useful collaborative powers to discover new artists, and draw bloggers and pro-sumers into the A&R process, worldwide. Bloggers, in particular, are the new Radio DJs! Combine some of the ‘wisdom of the crowds’ with your own professional A&R people. Do what P&G has done with Innocentive and their own ‘Connect and Develop’, and what DELL has done with Ideastorm, and what Kodak is doing in Social Media. The benefits seriously outweigh the risks!
7) Drop most if not all of the on-going law-suits, and switch your legal strategy to a 100% solution-oriented process. Compensation not Control is where the money is; all else is just posturing. The IFPI and RIAA-led efforts of enforcing control in an exponentially consumer-empowering media ecosystem have all failed miserably, and will not produce any monetary results in the future (except for enriching the lawyers). Here is a tough one for you: do you still need these lobbyists? Rather than spending most of the time preventing what the ‘people formerly known as consumers’ really want to do, all available energy should be put into exploring, building and co-developing those ‘new generatives’ for digital content, i.e. next generation advertising and branded content, packaging, bundling, flat rates etc.
8) Pursue drastic and large-scale innovation within - and on the fringes of - WMG. Bring the smartest possible people into the company; apart from content and talent (of course), focus on technology, mobile and next generation advertising and marketing. Invest in start-ups that can invigorate WMG 2.0 and provide significant strategic advantages.
9) Start to really talk to the music users, and have actual conversations with your customers. Engage on public conversation platforms, switch your PR and corporate communications from push to pull. Launch a WMG executive blog, start using Twitter; turn push into pull across the board. Do a Kodak - and go beyond! Create more transparency which creates trust which creates new business opportunities. Win back the trust of the consumer (better: the users) and the artists.
10) Offer profit-sharing arrangements with your artists: from a fixed pool of profit shares, each artist that is affiliated with WMG could receive a bonus payment that is proportional to their significance, every year. Do something similar with your staff.
11) Decentralize your distribution efforts, syndicate the music as wide as possible. Youtube gets 60% of its traffic from people embedding video players into their own websites - do something similar for your catalog. Instead of (or at least, along with) building or supporting central destinations, allow the users & fans to do the marketing for you, and syndicate your assets around the web. Think RSS, feeds, XML, API, not MTV.
12) Data is the new Gold - mine it! Making money around the music (not just from or with the music) is where the future is going. Investigate new business models that are based on data-mining, next-generation advertising and branded content, and behavioral targeting.
Note: once you’re ready.... there are a few good companies already working in most of these areas, and you could team up with them: just ask me.
Today, I am delighted to announce a very special event on "The Future of Books & Publishing in a connected World", on March 19th, in London. I have teamed up with Clive Rich (Rich Futures / Olswang) and Dominic Pride (the SoundHorizon) to jointly present a powerful, conclusive and inspiring program (8.30 am to 12 noon), geared towards Senior Executives, strategists and decision makers from all sectors of the book publishing industry, including the creatives, i.e. the authors / writers and their agents and representatives.
The Future of Books will present C-Level publishing executives with the real (and so far unspoken)
learnings from the music industry, a business which has been in transition since the days of Napster 1.0
and the first MP3 players. The speakers will present their views on what book publishers need to
understand, believe and do, to take advantage of this dramatic shift from selling copies of printed books
to selling access to a digital book (or both). Clive, Dominic and me will be making one presentation each, centering around several key questions: 1) what can and should really be learned from the music industry as far as adopting web-native business models is concerned? What really happened during the last decade in digital music, and why, and how could book publishers avoid a very similar situation? Is protection in technology or is it in the business model? 2) What are those 'immediate-future' business models for what we like to call Books 2.0, what exactly are the most likely new revenue streams and how can those real "New Generatives" be nurtured? 3) What needs to change so that a win-win-win future for publishers, authors and consumers can be constructed and realized?
In addition, we will try and address questions such as:
How can publishers respond to these rapidly emerging scenarios? Will books become "free"
and ubiquitous on all digital networks? If customers continue to pay, will authors and their
publishers get digital pennies instead of pounds?
As reading becomes another part of new retail environments and other services, how will it be
taken to market? And what are the additional services and usages which will form part of the
new value proposition, and ultimately new revenue streams?
Publishers need to act now to ensure that they continue to play a valuable role in fostering
talent, nurturing careers and in providing great content to readers
About the Speakers (apart from myself):
Dominic Pride: Founder and Principal Consultant, The Sound Horizon. Dominic founded The Sound
Horizon in 2009 to serve the growing number of companies wishing to create and maintain digital
strategies, successfully manage innovation and create new service concepts. Key clients for The Sound
Horizon include Nokia Media & Games and City Showcase. Prior to The Sound Horizon, Dominic was
Product Marketing Director for Shazam, where he spearheaded the company’s expansion into branded,
application-based services on iPhone, Android, Blackberry, Windows and Nokia platforms, and helped to
position the company as one of the planet’s prime music discovery brands. At Orange / France Telecom
Group, he drove the international market development of mobile and convergent music services and
played a key role in DRM-free music.
» www.thesoundhorizon.com
» www.twitter.com/thesoundhorizon
Clive Rich: Principal, Rich Futures and Consultant to Olswang. At Olswang, Clive works closely with
the Firm's music and new media practices. Clive has a 25 year history of excellence in the Music
business as a lawyer, Board Director and Strategic Director. At Sony BMG Music UK Clive created and
ran the “Futures Division”, responsible for all Sony BMG’s new and developing business - including its
digital music business, TV programming and brand partnerships. This included developing the business
interests of Syco, SonyBMG's TV joint venture with Simon Cowell. Prior to that he held senior business
affairs positions with BMG, and chaired PPL and the BPI Rights Committee. Through Rich Futures he has
since provided business affairs services to, among others, the Royal Opera House, MySpace, SanDisk and
the UK Government’s Technology Strategy Board. He also assists in the business development of a
number of emerging digital media companies in which he is a shareholder.
» www.richfutures.co.uk
Olswang London is generously hosting this event; registration is free-of-charge but invitation-only, and limited to senior execs from the book publishing business. If you are interested in participating please contact me directly (and soon - space is limited).
Where: Olswang LLP, 90 High Holborn, London, WC1V 6XX (click here for a map)
Below is our 'official' video trailer for this event, with all 3 speakers commenting on what we will talk about.
A conversation with Dominic Pride and myself can be viewed below, as well. More videos are available on our Youtube channel.
Reposting this: Robin Good, one of Italy's leading bloggers, produced a nice video with me, during my last trip to Rome. The bottom line: Contextis becoming just as valuable as Content (maybe we should call it content about content i.e. Metacontent?) - therefore, soon, the link economy will be quite real.
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ntly buy and download content legally also use illegal platforms. It also comes to the conclusion that the suspension or permanent removal of an individual's Internet connection will be counterproductive as many who do pirate content also pay for stuff as well. Thus legal video and music sales would fall. My comment: I think this is the most important point: disconnecting those that are looking for content, those that are fans and interested in music, is a ludicrous idea if you actually want to sell to them! Protection is in the business model not in technology or the law. Regulatory capitalism will fail (quoting James Boyle here).
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Dominic Pride: Founder and Principal Consultant, The Sound Horizon. Dominic founded The Sound
Horizon in 2009 to serve the growing number of companies wishing to create and maintain digital
strategies, successfully manage innovation and create new service concepts. Key clients for The Sound
Horizon include Nokia Media & Games and City Showcase. Prior to The Sound Horizon, Dominic was
Product Marketing Director for Shazam, where he spearheaded the company’s expansion into branded,
application-based services on iPhone, Android, Blackberry, Windows and Nokia platforms, and helped to
position the company as one of the planet’s prime music discovery brands. At Orange / France Telecom
Group, he drove the international market development of mobile and convergent music services and
played a key role in DRM-free music. 
Clive Rich: Principal, Rich Futures and Consultant to Olswang. At Olswang, Clive works closely with
the Firm's music and new media practices. Clive has a 25 year history of excellence in the Music
business as a lawyer, Board Director and Strategic Director. At Sony BMG Music UK Clive created and
ran the “Futures Division”, responsible for all Sony BMG’s new and developing business - including its
digital music business, TV programming and brand partnerships. This included developing the business
interests of Syco, SonyBMG's TV joint venture with Simon Cowell. Prior to that he held senior business
affairs positions with BMG, and chaired PPL and the BPI Rights Committee. Through Rich Futures he has
since provided business affairs services to, among others, the Royal Opera House, MySpace, SanDisk and
the UK Government’s Technology Strategy Board. He also assists in the business development of a
number of emerging digital media companies in which he is a shareholder.
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