1. Gerd Leonhard
Futurist, Author, Musician
& CEO
TheFuturesAgency
@gleonhard
@music2dot0
From Ego to Eco:
The Future of Music

2. The future is already here!
Tweet your questions @gleonhard

3. The future is already here!

4. The future is already here!
The music business is a lot
like the energy business :(

5. The future is already here!
...and artists are starting to feel like this

6. The future is already here!
We’ve had EGOsystems
...for way too long

7. The future is already here!
....whose economic losses...?
Piracy defined as any
act of non-compliance
with policies, pricing,
restrictions, rules
and technology :)

8. Do the big Oil Companies
The future is already here!
represent Nature?

9. The future is already here!
“They who can give up essential liberty to obtain a little
temporary safety, deserve neither liberty nor safety”
*Benjamin Franklin

10. The future is already here!
Music EgoSystems are
utterly unsustainable:
Rampant inequality
Total lack of transparency
Cartels & monopolies prevail
Laws & policies paid for by lobbyists
Enclosure of the Commons
Criminalization of Consumers

11. The future is already here!

12. The future is already here!
Piracy
★ is the result of the 1% trying to enforce
outdated business models
★ an aberration of radical consumer
empowerment based on ever-faster
networks and cheap but smart devices
★ consequence of market failure paired
with pervasive ignorance and blind
control obsession by most incumbents
CEO of MacMillan UK, April 2011, via PaidContent.org

13. The future is already here!
Restricting, protecting, preventing,
disabling ... is a suicidal strategy

14. The future is already here!
Control consumption?
Make content unavailable?
Enforce payment?
Restrict sharing?
Create artificial scarcity?
Sue fans into submission?

15. The future is already here!

16. The future is already here!

17. The future is already here!
Music is just about to migrate into a larger turf...
Mobile & Social

18. The future is already here!
First: redefine the meaning of Selling
- in the future, what will it mean to ‘sell music’?

19. The future is already here!

20. The future is already here!
Every screen is becoming some
kind of ‘connected TV or Radio’

21. The future is already here!
A huge opportunity for bundling
music and then offer premiums

22. The future is already here!
By 2017, between 50% to 75% + of all media
consumption will be via mobile devices *

23. The future is already here!
SoLoMo-Cloud
Welcome to the

24. The future is already here!
The end of Distribution as the key
success factor, metric and gate-keeper

25. The future is already here!
Total Unbundling is inevitable

26. The future is already here!
With some exceptions, the business model of
merely selling ‘copies’ of music is

27. Music .Toast Music. Future

28. The future is already here!
From one-to-many to
Many to Many

29. The future is already here!
‘Free’ Access / Listen / Streaming / Downloading
of music has become a de-facto standard and
Common Right

30. The future is already here!
Guess where we are headed...

31. The future is already here!
Touch. Play. Connect. Share.
Access not ownership *

32. The future is already here!
Access *not ownership

33. The future is already here!
Does ‘access not own‘
worry you?

34. The future is already here!
The issue: for the consumer, access to content
will be much cheaper than copies i.e. ownership
Source: Huffington Post

35. The future is already here!
But let’s do the math:
Access for everyone is better!
• Average advertising value of every active Internet
user is approx. € 42
• Average cost of customer acquisition for mobile
operators is € 100 each (global estimated average)
• € 2 per month raised per EU Internet user (i.e. approx.
500 Million) would result in approx. 1 Billion per
month i.e. € 12.2 Billion per year
• Which represents almost 100 % of the current
worldwide revenues for music
• The € 2 / month / user could be generated via
advertising, data-mining, flat-rates, bundles,
subsidies, taxes - or even directly from the users:)
• Note: and this would just be the beginning!

36. The future is already here!
2017: 5 Billion people, 75% mobile Internet,
50+ major platforms, a €250 Billion ad market

37. Premium-Services
The future is already here!
Up-Selling Added Values
New Generatives

38. Build income streams around the Music.
The future is already here!
Invent added values, pursue collaborative business models

39. Fluid + Feels-Like-Free + Freemium | Upselling
+

40. The New Generatives *Kevin Kelly
The future is already here! Packaging and Interfaces
Curation, Filtering and Selection * Thanks to Kevin Kelly kk.org
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)
Gamification
... and many more

41. New Generatives *Kevin Kelly
The future is already here!

42. New Generatives *Kevin Kelly
The future is already here!

43. The future is already here!
The problem is not the ‘pay’ -
it’s the wall!
☺
☹
Source:

44. The future is already here!
Other ways to get paid...

45. The future is already here!
We are already..
Paying with our Data

46. The future is already here!
Is there $ in advertising-supported music?

47. The future is already here!
Big Data will fund ‘Big Content’

48. The future is already here!
Ease of use + Choice + Price +
Added Values + Brand = $£€

49. The future is already here!
It’s about Value & Experiences not just Price!

50. The future is already here!
Imagine if 3 Billion people switched to legal streaming
*clearly, this will never happen without a collective, standardized, public, EU-wide license

51. The future is already here!
Urgent: Copy Public Rights that fit our
Digital Ecosystem

52. The future is already here!
The ‘free markets’ won’t fix this.
We need must-license provisions, public
oversight, regulation for the common good.

53. The future is already here!
Hyper-Collaboration

54. Creators & Artists: we must embrace change and
The future is already here!
focus on solutions based on Collective Objectives

55. The future is already here!
Take back the Music!
Business
Innovation
Culture

56. The future is already here! Thank
You!
D E S I G N :
C R E A T I V E