Gerd Leonhard

Futurist, Author, Musician & CEO

TheFuturesAgency

Creating a new Ecosystem: The Future of the Music Industry

@gleonhard@music2dot0

The

futu

re is

already h

ere! The music business seems a

lot like the energy business :(

The

futu

re is

already h

ere!

The Music Industry has been ruled by EGOsystems for way too long

The

futu

re is

already h

ere!

The current Music Ecology is

unsustainable:Rampant inequality

Total lack of transparency

Cartels & monopolies still prevail

Laws & policies paid for by lobbyists

Increasing enclosure of The Commons

Criminalization of Consumers

The

futu

re is

already h

ere!

Piracy is now de!ned as any act of non-

compliancewith rules policies, pricing, restrictions

and TPMs / DRMs...?

....whose economic losses...?

The

futu

re is

already h

ere! “They who can give up essential liberty to obtain a little

temporary safety, deserve neither liberty nor safety” *Benjamin Franklin

The

futu

re is

already h

ere!

The

futu

re is

already h

ere!

Piracy...? ★ is the result of the 1% trying to enforce

outdated business models on the 99%

★ is a temporary consequence of radical consumer empowerment driven by ever-faster data networks and cheaper but even smarter devices

★ the consequence of total market failure as a result of pervasive ignorance and blind control obsession by the incumbent players

CEO of MacMillan UK, April 2011, via PaidContent.org

The

futu

re is

already h

ere!

The

futu

re is

already h

ere! Restricting, protecting, preventing,

disabling ... is a suicidal strategy

The

futu

re is

already h

ere!

The

futu

re is

already h

ere! But: the music business is entering a whole new era:

Mobile | Social | Cloud

The

futu

re is

already h

ere!

Welcome to the

SoLoMo-Cloud

The

futu

re is

already h

ere! 2017: 5 Billion people, 75% mobile Internet,

50+ major platforms, a €250 Billion ad market

The

futu

re is

already h

ere! We must rede!ne the meaning of Selling

- in the future, what will it mean to ‘sell music’?

The

futu

re is

already h

ere!

Every screen is becoming some kind of ‘connected TV or Radio’

The

futu

re is

already h

ere! A huge opportunity for bundling

music - and then offer premiums

The

futu

re is

already h

ere!

By 2017, between 50% to 75% + of all media consumption will be via mobile devices (Gerd’s prediction)

The

futu

re is

already h

ere!

Total Unbundling is inevitable

The

futu

re is

already h

ere! With some exceptions, the business model of

merely selling ‘copies’ of music is

Music .Toast Music. Future

The

futu

re is

already h

ere!

From one-to-many toMany to Many

The

futu

re is

already h

ere! Like it or not: ‘Free’ Access / Listening /

Streaming / Downloading of music has become a de-facto standard and a universal practice

The

futu

re is

already h

ere!

Touch. Play. Connect. Share.Access not ownership *

The

futu

re is

already h

ere! The end of Distribution as the key

success factor, metric and gate-keeper

The

futu

re is

already h

ere!

Access *not ownership

The

futu

re is

already h

ere! Imagine if 3 Billion people switched to legal streaming

*clearly, this will never happen without a collective, standardized, public, EU-wide license

The

futu

re is

already h

ere! Like it or not: for the consumer, access to content

will be much cheaper than copies i.e. ownership

Source: Huf!ngton Post

The

futu

re is

already h

ere!

Up-Selling

Premium-Services

New Generatives

Added Values

The

futu

re is

already h

ere!

* Thanks to Kevin Kelly kk.org

Packaging and Interfaces Curation, Filtering and Selection

Social Context & Relevance Intelligent Aggregation

Assisted Serendipity Timeliness and Personal Relevance

Quality and Trust Guarantee Customization and Personalization

Localization / Contextualization Cloud-to-Device Management

Advertising as Content (Branded Content) Gami!cation

... and many more

The New Generatives *thanks to Kevin Kelly

Fluid + Feels-Like-Free + Freemium | Upselling

+

The

futu

re is

already h

ere! Build income streams around the Music.

Invent added values, pursue collaborative business models

The

futu

re is

already h

ere!

Hyper-Collaboration

The

futu

re is

already h

ere!Creators & Artists: we must embrace change and

focus on solutions based on Collective Objectives

The

futu

re is

already h

ere!

The problem is not the ‘pay’ -

it’s the wall!

Source:

!☺

The

futu

re is

already h

ere!

Is there $ in advertising-supported music?

The

futu

re is

already h

ere!

Big Data will help to fund ‘Big Music’

The

futu

re is

already h

ere!

We are already..

Paying with our Data

The

futu

re is

already h

ere!

Going Direct is becoming...real

The

futu

re is

already h

ere! Ease of use + Choice + Price +

Added Values + Brand = $£€

The

futu

re is

already h

ere!

It’s about Value & Experiences not just Price!

We urgently need a Public Rights Logic that

!ts our Digital Ecosystem

The

futu

re is

already h

ere! Without a public, open, standardized license

for digital music this is very unlikely to last...

The

futu

re is

already h

ere! The ‘free markets’ won’t !x this.

We need must-license provisions, public oversight, regulation for a common goal

The

futu

re is

already h

ere!

Take back the Music Business!Business

CultureInnovation