May 22, 2007

Warner Music cuts 15 in U.K. - Time to face the Truth - UNLOCK THE MUSIC! One has to wonder why Warner Music just does not seem to have the guts to do what needs to be done to remedy their 'shrinking pie' problems. Well, here it is, again: 1) Sell music in an open format that works on ALL devices, with flexible pricing (that is more $ and less $!), and in bundles / subscriptions / packages. Make music ubiquitous, sell it everywhere, anytime, to anyone, bundle & package - take a page from Amazon! The key is to make your music available widely, and without all the buts and ifs, and with open and fair licensing standards. 2) Offer fair agency deals to new artists, make them (and their managers!) more responsible for their own success, but take 25%-50% of all revenues that flow from the artist's brand. Move beyond music as the single money maker -it's a MULTI MEDIA world now... right? - and PLEASE get off the 'selling copies' paradigm and into 'selling access & services'. Make a larger pie instead of quarelling over who gets what of the quickly-shrinking pie you have now. 3) Reduce marketing costs by 60% by diving into SYNDICATION of content - let the users / fans / listeners / PEOPLE do your marketing for now. Give up 'pie in the sky' of total control over distribution and get the revenues flowing again. And of course: first of all, admit you were wrong about DRM, about taking your customers to court, about trying to force the music fans and users into submission - and then get ready for a new flood of revenues. And yes - you may need to slim down to 30-50% of your current size, and get people aboard that know what's real and what's not. ENGAGE NOT ENRAGE. Got it? Check out my...

Gerd Leonhard

Keynote Speaker, Think-Tank Leader, Futurist, Author & Strategist, Idea Curator, some say Iconoclast | Heretic, CEO TheFuturesAgency, Visiting Prof FDC Brazil, Green Futurist

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