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Building on the commons for for fun and profit. Presented to the Nordic Cultural Commons 2008 conference in Stockholm
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Money for nothingbuilding on the commons for fun and profit
John Buckman <john@magnatune.com>
http://slideshare.net/johnbuckman
Home bookshelves around the world
Their books available to you
for free
and nothing publishers can do about it
BookMoochmakes money with:
- margin on Amazon sales
($40,000 in monthly Amazon book sales)
Twenty companies
The largest:
BookCrossingPaperbackSwap
BookMooch
Estimate:
Two million people have tried book swapping
At least
50,000 books are swapped
each day
Google loves us
BookMooch - total number of swaps
BookMooch - total number of swaps
1 year ago: 300,000 - now at 1.1 million
300,000 in 1st year
800,000 in 2nd year
Book swapping web siteswill be the first global, free
repository of most historical human knowledge
But, there was a problem.
Our business model sucked.
BIG music license fees are an old-boy network
Our download advantages:
* no drm* high audio quality* musicians get paid
Yawn.
iTunes does that all now.
Cory Doctorow says:
DRM is not a feature
I say:
The lack of DRM is also not a feature.
Our consumer model is outdated.
In 1970:
Shopping for music is fun!
In 2000:
Shopping online for music is fun!
(just like in a physical store)
In 2008:
Shopping for music online is boring
Find a teenage girl
Look at her iPod
You will find:
CollectionsMusic from my friend Amy
That cute DJChill out
I wanna feel good! music
Our analysis:
being a music librarian is no fun
- picking music is tedious- backing up, moving music is work
- “I just want to listen!”
Our analysis:
People want access, they want curated collections,
they want simplicity.
Our new business model
Help us stop selling you music
Tell us how much you want to pay each month
We give you complete access to our music, in every way you can
imagine
streaming from workdownloads
3g iPhone appweb player
multihour podcastsCreative Commons legalized sharing
completely changes the seller/buyer dynamic
“customers” become
“members” and “supporters” and
“connectors”
and all I need to worry about is keeping them happy.
Forget B2C!
What about B2B?
US music business is$18 billion annually
$12 billion of that is licensing
Yes, 2/3rds.
Record labels are scared, slow, stupid.
And they’re downsizing.
And many companies are out-competing them with licensing.
Our niche:
rights you can’t get elsewhere
Renault Megane
From the producers of The Blair Witch Project
To summarize
Music licensing is an ok business
slow to build, focus on untapped niches
Download sales are dying
For now:
Memberships, all-you-can-eat,no restrictions,
works.
Magnatune won’t take over the world
but it can make a contribution
and it’s a nice way to spend a decade of my life
Money for nothingbuilding on the commons for fun and profit
John Buckman <john@magnatune.com>
http://slideshare.net/johnbuckman
the end
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