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KRS

Reflections on the main characteristics and requirements of the users and customers of social networks.

A presentation from KRS

Think….

The Question: How much of your time are you confronted with media content each day?

Answer:Every time you look at TV, look at the web, read a blog or listen to the radio.Every time you put on a CD in the car or watch a DVD in the evening to relax.Every time you receive an SMS, MMS, or video on your phone or PDA.Almost all of our awake time we are confronted with media content.

So, who produces all this content?It used to be professional producers at national broadcast or commercial TV and radio stations. Today, thanks to new technologies and the growth of the Internet, anyone who uploads a movie, a piece of music, writes a blog or remixes ring tones are in fact…

Normal consumers are today's Media producers.

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Connections 1 (2)

"The deepest hunger in humans is the desire to be appreciated." William James, pschycologist and philosopher.

The fast development of people's digital life with computers, camera mobiles, MP3 players, online social networks etc. has caused the need for the production of media content to multiply during a short period of time and this expansion will continue exponentially ,driven by new technologies.

As an example, Nokia and Sony Ericsson both deem the business segment “Multimedia” one of their most important for the future.

”In the future everyone will be famous for fifteen minutes”.Andy Warhol

With TV shows such as Pop Idol, SingAlong, America's Greatest Talent, and sites such as YouTube, Joost and MySpace, the urge to be seen and heard has increased dramatically, driving the demand for tools to create, produce and share your own content.

On the Web most sites are still silent and static. In the future, websites will act more like interactive multimedia presentations, including video and audio content, that all needs to be created, produced and published. We will see an explosion of media production in the coming ten years.

Source: Emarketer

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Connections 2 (2)

The fast development of sites such as MySpace and Facebook has been instrumental to

their success. In addition to these “wide” communities, members like to join more niche

communities to gain true peer group recognition ,such as Netsounds, that caters to music and video

creators instead of the “average kid”.

The strong peer group recognition make communities permanent and members much more loyal than

to "wide" communities. As customers grow more sophisticated, so must the sites that serve

them.

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Participants in music networks

The Enthusiasts - Young and middle aged men and women who has a strong wish to create music and/or video as a hobby or as a potential future profession.

From the dream of being famous to the urge to play music or make personal home videos.

Predominantly more and more people are spending time on the net to find others with the same interest, to share their work for recognition and to get more knowledge.

The Professionals - Young or middle aged women and men who work in the media production industry, radio, TV, production companies, broadcasting, media agencies and web agencies.

From large national corporations to freelance workers who need professional, cost-effective solutions and the latest generation of technology to stay competitive.

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Music consumption

The decline in record sales and difficulties with the record labels has led many artists to invest in

new products so that they can produce and publish their music on their own or through independent

labels i.e. the crisis in the record business actually fuels new growth.

Consumer patterns are changing and we consume music in new ways. We want to edit, create

and re-mix our own music and ring tones, and put music in our home videos on our web site and

generally be involved in what we call “rich content”.

The success of iTunes, now the world largest online record store, the success of Indie bands, and

booming amount of tv channels (every car brand and soccer team will have their own tv channel in 3

years from now ) fuels the success of MI7.

The growth of YouTube and other content sharing sites will be a significant driver of sales of media

tools in the future.

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Drivers of the Media Production Market

The need for Media Content is booming!New technology is replacing Human Resources.Anyone can can become a Media Producer.

Mostly focused on traditional Musicians.CMP only a fraction of the total sales of the industry

Strong Focus on Media producersBuild value in the form of a complete ecosystemGlobal reach and global attitude gives unique offering

Necessary to foster digital technologies and media production also in education and

connect stakeholders!

Industry Dynamics

Strategic focus of the

resellers/suppliers

Actions

Implications

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The Music Products Industry

Summary:

•Worldwide Revenue of USD 17.8 billion in 2007.

• Growth of 22% during the last ten years.

• Computer Music Products is the fastest growing

segment in the industry.

• Growth of 312% during the last ten years.

Source forMusic Product Industry figures: NAMM

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Computer Music Products Growth

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Computer Music Products

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Computer Music Products

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Online Social Networks

Summary:

• Worldwide phenomena.

•MySpace and Face Book are the two “Giants”.

•Social Networks very often powered by music and video clips e.g. more than 1

million bands on MySpace.

•Progressing from Giants to Niche online networks.

•The ultimate target for advertisers.

•Users trust each other more than any institutional or commercial source.

•Online Social Networks are the premier carriers of Word-Of-Mouth marketing.

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Why people participate in Social Networks

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• To learn to express opinions• To share experiences• To make friends• To participate in a committee, club, or other group• To live a fantasy life• To find a job• To sell something• To have a platform for self-expression- to show your music and videos

“The net result: Individuals will increasingly take cues from one another rather than from institutional sources

like corporations, media outlets, religions and political bodies”.

– Forrester Research, 2006

Summary

•Consumers are todays Media Producers.

•More and more artists create their own ”labels” and produce and distribute their work themselves.

•The distribution platform for artists will for now and in the future be truly multi-channel.

•The drop in record sales has meant a large increase in live music.

•The market for the tools and knowledge for media producers is growing rapidly.

•The educational establishment could help students across the EU to bring out their own creativity and to create, produce and share media to audiences worldwide.

•Netsounds brings together stakeholders and helps making this vision a reality.

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The Presenter

Per Erik Larsen – CEO KRS Holding

KRS Holding is a consulting company in the music and media industries.

Previously, Per was the Chief Operating Officer at Steinberg Media Technologies AG, the worlds largest music software manufacturer. His background includes Executive Education in Marketing, Corporate Finance and Human Resource Management from the University of Chicago. Per has worked with several international marketing and sales companies and played a key role in the preparation of the IPO for Steinberg on Neuer Market in Germany and the following sale to Pinnacle Systems. He currently hold board positions with Swedish, German, US and Japanese companies. Per has more than 20 years experience from the international media and music market as well as distribution and manufacturing industries.

KRS Holding is a consulting company in the music and media industries.

Contact detailsKRS HoldingMellangatan 6623930 Skanör, SWEDEN:Email: perlarsen@mac.comTel: +46-40-6306979

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