Music 2.0: The Future of Music. Gerd Leonhard at Telkom Indonesia Music Unlimited Event

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This is the PDF from my talk at Telkom Indonesia's Music Unlimited event in Jakarta, May 2, 2011. See for details and the event flyer: http://twitter.com/#!/gleonhard/statuses/63871852434563072 and http://gerd.fm/j8g0nh (Rolling Stone Indonesia)

Transcript of Music 2.0: The Future of Music. Gerd Leonhard at Telkom Indonesia Music Unlimited Event

Image by http://twitter.com/#!/EricaGlasier via CNN Blog

Work

Fun

Hat tip to Kevin Kelly

Source: TBWA via Slideshare

“More and more companies lose control of their customers when new technologies enable them to interact with products on their own terms”

Mark Mulligan, Forrester

Trust = Money

Control = Money

Enforcing control when attraction, trust and engagement is crucial will not generate new income

The music business urgently needs a new kind of

“Gotong Royong”

Image via Flickr.com/rubicon

Source: my own darn iPad

In a dysfunctional system, disruption is a crucial requirement for success

Indonesia: some relevant facts & figures

Image: Flickr.com

Source: kk.org

Source: CEO of Macmillan UK, paidcontent.org

Source: Trendspotting.com

0

25

50

75

100

Was Will be

Price Number of legal users

Source: Brian Newman via Slideshare

So how will artists & creators get paid?

Broadcasting & Public Performance (2.0)

Revenue Shares from Music Bundles & Flat Rates

Branded Content Deals

Sponsorships

Fans & Direct Funding

Up-selling (many different options)Concerts / Live Shows

Many new revenue streams...tbd

Content i.e. ArtistsLabels, Publishers

Advertisers

Telcos & Operators

Device Makers

Social Networks

Source: Monty.de

Facebook is very likely to expand into TIME sectors

Fred Wilson AVC.com

Text

Better service: fluid, clean,

safe and easy

Better interface

Social and inter-connected

Better tools

Fair and attractive pricing *

Timely & contextual

Likable

• Don’t just ‘sell music’ but bundle and upsell access to music, and music experiences

• Co-create a new music economy• Disrupt old, pre-Internet, dysfunctional music

business paradigms• Make it work on / with any mobile phone • Make it work with/out mobile Internet access• Make it work in / with Internet-Cafes• Make it work for pre-paid phone users• Base it on feels-like-free + upsell• Disrupt. Lubricate. Co-opt. Make a market.

What would solve the illegal download problem?

Source: Mary Meeker, KPCB

Telcos & operators cannot stick with ‘just being the pipe’

Source: Frost & Sullivan

Telcos and Operators have a huge opportunity to curate and lubricate digital content, and to host / curate the social

conversation around it.

• Labels and publishers are still very much needed but no longer must-have gatekeepers

• Must provide more added values, at lower cost• Will become more like agents than ‘owners’• Will be much more about marketing not distribution• Labels & publishing sectors will merge• Will need to become totally transparent• Must become networks not remain monopolies• Must embrace web/mobile native approach

Thanks to Alan Moore (via Slideshare)

Open licensesOpen innovationOpen distributionOpen competitionOpen partnershipsOpen technologies

Open data standards