Wow - this was a marathon presentation on The Future of Media, in Rio de Janeiro, today (pictures of me at Corcovado to follow ;); 2 hours + on pretty much any topic related to the Future of Media: access versus ownership, egosystem to ecosystem, control vs trust, content flat rates, advertising 2.0, privacy, data is the new oil... and much more. There is a lot of good stuff in here, if I may say so myself;) Hopefully you'll agree. We will probably have a video available soon, as well, so... stay tuned. If you are interested in what else I have been doing in Brazil, more talks and videos are here (in particular the Roda Viva video). You can download the PDF via slideshare, below, or just use this low-res PDF version:
Download Future of Media Estacio Rio Public LOW
Just found this
- some good soundbites of my favorite memes - well worth the 3 mins 50 secs;) . The slideshow from my keynote at the International News Media Marketing event, itself, is here.
Here is a real must-watch: a 90 minutes tour-de-force on pretty much anything you'd ever want to know on the Future of Communications, Marketing, Advertising, and (Social) Media. This presentation (and the event that was put on by the NBS agency who have also graciously provided this video recording) got a lot of attention in Sao Paulo and in the Brazilian media, so give it a whirl.
Last year, I was interviewed by Consumers International's Luke Upchurch for this really powerful film, during the 2009 TACD / Paris Accord meetings (see this presentation on the Future of Content), and a couple of snippets actually made it in here. Along with a few juicy snippets (incl. one by John Kennedy / IFPI), this film outlines the latest developments in this space really well - in fact, it's outright scary what is happening here - watch this movie!
To coincide with the second annual publication of
Consumers
International’s IP Watchlist, CI is launching this short online film,
looking at the renegotiation of the relationship between copyright and
consumers. This is a film about how copyright has become one of the most
important
consumer issues of the digital age; why corporate lobbying risks
criminalising the actions of hundreds of thousands of people; and what
the future holds for the fight for fairer copyright laws. When Copyright Goes Bad is for anyone interested in how copyright
is
affecting consumers.
Apart from my 20 own seconds of micro-fame, the movie also features: Fred Von Lohmann - Electronic Frontier Foundation;
Michael
Geist - University of Ottawa Law School; Jim Killock - Open Rights
Group; and Hank
Shocklee - Co-founder of Public Enemy. @Shocklee @michaelgeist @sunil_abraham
@eff
Please share, embed and pass on.
For a variety of
film formats,
blog commentary, language versions, additional footage and more, go here.
This is a short, 90 second clipping from my talk at the Guardian Changing Media Summit 2010, in London, on "Immediate Media Futures"
The key messages:
In this 'new' era of digital, ubiquitous and mobile / social content, enforcing control when
trust is needed is a very bad idea, indeed - and it is likely to sooner or later eliminate your audience
In the connected economy, I think that forcing to pay is like forcing to love. A much better way to look at this is to "ATTRACT and ENGAGE" followers (those people fka consumers) to buy.
More from this event is available at the Guardian's site; and I hope to have the entire 15 minutes of my talk up on my Gerd-Tube channels soon, as well. You can watch the same video (and other short ones) on my Flickr page.
I really enjoyed being at the Guardian's Changing Media Summit in London, last week. Not only is the Guardian one of my favorite online news-sources but I also got a chance to talk to Wikipedia's Jimmy Wales, during the event, and I met tons of great and inspiring people - London is always a goldmine for that. So, as promised, below is the slideshare version of my presentation as well as the direct link to the low-resolution PDF download; feel free to download and re-use as you like (under the usual creative commons, attribution / non-commercial license).
Some of the bottom lines from my presentation: 1) in content and media, we are rapidly moving from just selling 'stuff' i.e. copies of content, to selling services and experiences 2) EGOsystems are rapidly becoming ECOsystems; i.e. because we are all (well, most;) connected now we must create and implement mutually beneficial business models that are based on market-making and revenue sharing 3) Trying to enforce control when trust is crucial is a very bad idea, i.e. the quickest path to failure in this new content economy 4) In the content industries, the concept of mostly 'selling copies' is becoming 'toast' - "New Generatives" based on access must urgently be created and delivered 5) The future is in selling -and bundling - access, not (just) copies, and the ecology of selling access is totally different - we must get used to it! 6) The content 2.0 economy will work only in conjunction with a new approach to what telecom companies, ISPs and mobile operators will and can do, going forward. The creation of a new telemedia ecosystem is needed to really solve the key issues that the Internet has made even more urgent to solve 7) All content is shifting to the cloud, and Media As A Service (MaaS) will become a standard, very soon 8) therefore, as I have said many times before, data is the new oil (!!) 9) Value, Reason, Price, Ease of Payment and Packaging are the main success factors in selling content online 10) Most business models in the content industry will be based on a constantly changing mix of 'I pay, you pay, they pay' 11) A message to Murdoch et al: Forcing to Buy is like Forcing to Love!
It was a great pleasure to be invited to contribute to the Sao Paulo / Brazil-based Fundacao Dom Cabral's innovative CEO leadership program, led by my colleague and Swiss-Brazilian collaborator and leadership guru Didier Marlier, as a visiting professor. Below is a fairly large and long (95 pages - do not print!!) slideshow with most of the important stuff I presented; needless to say this was not the usual 45-60 minute session but took pretty much the entire afternoon. I was extremely impressed with the organization and their hosts (FDC / Dalton Sandenberg) as well as with the fast and agile minds of the CEOs that attended - we had some very inspiring conversations. And Caipirinias, too;). Update: Low-res download of PDF here: PDF 11.5 MB Open Network Economy Gerd Leonhard FDC SP Low-res
Enjoy. Share. Retweet. And get my free iPhone app before it turns 'freemium'.
I just re-discovered a video of an interview with me (see below), during Picnic 2009; posted by the European Journalism Centre. There are a few important points from the video that I want to share with you:
The new winners (with the possible exception of Apple;) are all pursuing open platforms; i.e. products and services that can easily yet deeply connect with others (I sometimes call this 'the cult[ure] of API'), companies that are ready to collaborate, co-create new business opportunities and share revenues (see Google, Skype, Twitter, SixApart, Wordpress, NPR, The Guardian, Salesforce.com, Amazon etc)
The switch from 'The Network' to 'The Networked' and from Broadcasting to Conversation is a shift across entire societies and cultures, not just in business or technology; this is further amplified by the simultaneous move towards radical globalization and increased localization
In an Open OS i.e. an interconnected Ecosystem (good examples include Google*for now, and the blogosphere) you don't compete with mere force or market-power, you compete on merit and trust. This is why I believe that once the system is more liquid and there are less hurdles to 'conversion from free', good artists / creators / producers / curators will indeed prosper more than ever before (call me an eternal optimist)
Pretty much every creator already knows it's not (just) about selling copies of his/her work, rather, in a connected and interdependent ecosystem it is about selling the brand, the perception, the experience. This is why the content industry's tradition of over-emphasizing copyright as the sole guarantor of future revenues won't work (at least not if you want to actually increase revenues rather than just maintain an illusion of control)
In an Open Content Ecosystem it won't really matter who copies what, but how much attention you get before and during the process, and how good you are in converting it into action and / or real monetary value (and this is as true for brands as it is for content creators)
In a digitally networked society, the value isn't so much in the content, itself, as it is in the context (see my previous post on the same topic)
Another brilliant post by Umair Haque via the Harvard Business Review - he spells out a lot of stuff that keeps coming up in my presentations, as well; so here's a bit of a remix of this juicy post, my comments are [...]
"On one side is the old high ground of the industrial era capitalism; on the other, the new high(er) ground of next-generation capitalism. The yawning chasm in between them is the gap between the 20th century and the 21st" [I call this the EGOSystem vs the ECOsystem, see more here and here]
"Currency intervention, breaking Copenhagen, crackdowns , collusion, corruption, coercion, and censorship: China's ongoing bad behavior as global citizen is, when we connect the dots, the gigantic elephant in the world's boardroom. What's driving it? The quest for monopoly, monopsony, and control" [I wrote about something quite similar in my 2007/2008 blog-book "The End of Control", check out the free online chapters here, and a related presentation, here]
"That's yesterday's high ground, and China's focused like a laser beam on it. China's moves are the textbook stuff of b-school's blackest arts. Through larger distribution, fiercer litigation, greater exclusivity, cheaper and faster production, a bigger cash pile, advantage is gained. But the high ground has shifted. The new high ground is an ethical edge. It's
not about having more; it's about doing better. It's not about
protecting exports, pressuring buyers and suppliers, price
discriminating against the powerless, and programming consumers to buy,
buy, buy — it's about making people, communities, and society
authentically better off. It's not about caring less — but caring more.
It's not about ruthlessness. It's about mindfulness" [Couldn't have said it better, myself; here are just a few things I would add: in this new ecosystem that Umair is describing, we will need to develop web-native economic models and entirely new metrics for evaluating them, friction will indeed be fiction (to a very large degree) and the importance of control will be utterly eroded by the steadily increasing power of trust, engagement and transparency]
"The old high ground was built for 20th century economics: sell more
junk, earn more profit, "grow" — and then crash. An ethical edge
operates at a higher economic level. It is concerned with what we sell, how profits are earned, and which authentic, human benefits "grow." It's a concept built for the economics of an interdependent world" [A key term, imo: an interdependent world, i.e. not a broadcast world but a connected and networked world]
"An ethical edge just might be the ultimate cause of advantage.It's
how better distribution, production, marketing, and pricing — all just
proximate causes of advantage — ultimately happen. Jim Chanos's
investment thesis says: without an ethical edge, new value cannot be
created — old value can only be shuffled around (hi, Wall Street)....So here's the single question everyone should be asking. The old high
ground is the new low ground. Yesterday's mountain is today's valley.
Are you ascending to the new high ground?"
There are a ton of really great kernels of wisdom and learnings in this open letter by Google's Jonathan Rosenberg. Be sure to read the whole thing; but here is the most essential part:
"Closed systems are well-defined and profitable, but only for those who control them. Open systems are chaotic and profitable, but only for those who understand them well and move faster than everyone else. Closed systems grow quickly while open systems evolve more slowly, so placing your bets on open requires the optimism, will, and means to think long term. Fortunately, at Google we have all three of these"
I always enjoy the Mobile Monday events - great people that are keen to talk, learn and exchange the latest developments and ideas in the mobile space (my previous, Mobile Monday Amsterdam PDF is here or here btw, and the video is here). Update: the video from this event is now available on YouTube.
As promised, here, below, is my slideshow and PDF from today's gig in Munich, on the topic of "Media 2.0: Mobile, Social, Open...Free?". Enjoy. Share.
Bizarrely, the UK government, led by Lord Mandelson, the UK Business Secretary, seems to have done a 180-shift in the past 2 weeks by once again proposing to disconnect alleged file-sharers from the Internet. In other words: if the content industry can't get people to buy music or films, or other so-called content, by offering relevant, fair and affordable new ways to do so, maybe the government can help to force people back into buying the old-fashioned way, i.e. by the unit / copy? Rather than actually change the industry's business model, let's just change the consumers' habits - problem solved!
If you want to be puzzled, just read the UK government's announcement (PDF via Arstechnica). The Net is buzzing with news on this topic; see below. The FT has a good recent update called 'Claws & Effect' here; wherein I read (with little surprise): "Senior music industry figures, such as Lucian Grainge, head of
Universal Music International, have been influential in mobilising
Westminster to act". Lobbyists succeed again?
The bottom line can be summarized like this: "Let's just see if we can still force people to consume music in the way that suits us better". Never mind that the very similar French Sarkozy-'Bruni' proposal was just recently deemed illegal by the French Constitutional Law as well as by the European commission - maybe some good lobbyists can revert that, as well?
Here are a few quotes I have collected on this topic:
Those who like this idea
"John Kennedy, chief executive of IFPI, the organisation representing
the recording industry worldwide, says: “It is not enshrined in any law
anywhere that one has the right to steal music, films and books. There
is a crisis in the economy, and as well as respecting rights we have to
think about the economy and jobs” (FT) Related read: John Kennedy at RSA
“We welcome the government’s recognition that this problem needs to be
addressed urgently, so today is a step forward that should help the
legal digital market to grow for consumers,” the BPI, the music
industry trade body, said. “The solution to the piracy problem must be
effective, proportionate and dissuasive” (FT)
Those who don't like this idea
"Charles Dunstone, chief executive of Carphone Warehouse, one of the
UK’s biggest providers, says: “We are going to fight [being forced to
disconnect customers] as hard as we can. Our fundamental duty is to
protect the rights of our subscribers” (FT)
"A Virgin Media spokesperson said: “We share the government’s
commitment to addressing the piracy problem and recognise that new laws
have an important role to play in this. But persuasion not coercion is
the key to changing consumer behaviour as a heavy-handed, punitive
regime will simply alienate mainstream consumers. The
government should be ensuring a balance of action against repeat
infringers and the rapid development of new legitimate services that
provide a compelling alternative to illegal file-sharing" (FT)
"Internet provider TalkTalk said it would "strongly resist" government
attempts to oblige Internet service providers to act as Internet
police. TalkTalk said disconnecting alleged offenders "will be futile
given that it is relatively easy for determined filesharers to mask
their identity or their activity to avoid detection" (HuffPo)
One of my favorite quotes, via Labour MP Tom Watson: “Challenged by the revolutionary distribution mechanism that is the
internet, big publishers with their expensive marketing and PR
operations and big physical distribution networks, are seeing their
power and profits diminish. Faced with the choice of accepting this and
innovating, or attempting, King Canute-style, to stay the tide of
change, they’re choosing the latter option, and looking to Parliament
for help with some legislative sand bags” (FT)
Some important facts and other related snippets (quotes from various sources):
Proposed EU telecommunications legislation includes a clause stating that internet access is a fundamental human right (FT)
In Ireland, internet companies UPC and BT Ireland have refused to
comply with music companies’ requests to cut off suspected pirates (FT)
The Sunday Times claims that Lord Mandelson,
the business secretary, has been persuaded that pirates should be
deprived of internet access altogether after dining with “Hollywood
mogul” David Geffen *via FT (no surprise here, either;)
I have been saying this since 1999: the solution to illegal filesharing is to legalize the way that people share content online, to create new, public, compulsory licenses for content, starting with music (yes, just like the Radio / Broadcasting license), to create fair and flexible licensing standards, and to reduce control in favor of compensation.
The UK's trend towards increased criminalization is just plain old wrong, technologically absurd and utter fantasy, culturally 500% retro, and socially unjustifiable. Techdirt's Mike Masnick sums it up nicely: "You may kick people off the internet, but does anyone honestly think that will actually get people to buy again?"
Welcome to Content 0.0? I am in beautiful Sydney Australia for a keynote speech at AMBC, the Austral-Asian Music Business Conference; for a keynote on Music 2.0 and the Digital Music License tomorrow (August 21, 2009). AMBC is a great event and I am very happy to be here, but for the past 30 minutes we were subjected to one of the most bizarre, desperate and - sorry to be so frank - ...mad schemes of how to turn digital content into money on the Internet - and of all people, by one of the original Kazaa guys, Skype investor, and CEO of Altnet and Brilliant Entertainment, Kevin Bermeister. I have recorded some of his speech on my iPhone voice-memo recorder, and may make it available later, but here is, in a nutshell, what Kevin and his company, Altnet, seem to propose (and be sure to read their recent press release on the relaunch of Kazaa):
Put a Cisco 'Copyrouter' into the network of each ISP, everywhere
Have the Copyrouter (ouch... that word alone gives me the chills) look at all traffic that is based on or runs on certain P2P protocols, and define what's being shared via the unique hashtags that each file represents. Deep packet inspection... go!!!
Block all traffic with hashtags that have been flagged as 'unauthorized' (i.e.... all?), and replace them with files that are DRM'ed (yes... really) and that can be downloaded only if you allow a charge to be levied by your ISP.
I won't even attempt to delineate what I think is wrong with concept because there are so many issues that they would fill this blog for the next 30 days. But the mere fact that this kind of scheme is being presented in a keynote at a leading music industry conference is, frankly, making me feel quite hopeless on the future of digital music. But maybe I am wrong... you tell me (comment box below)
Anyway, first, Kevin seems to want all our traffic to be deep-packet inspected (i.e. monitored) so that a automatic determination of it being lawful or not-lawful can be made. That, in itself, is a bizarre and utterly unfeasible concept has already been rejected by the European Commission and almost all governments around the world (except for France), because it only points in one direction, and that is towards CHINA's version of the Internet. Police-states, Censorship and severe lack of freedom of expression and speech. Are you serious, Kevin? Is this what you want so that the major labels and studios can keep or shall I see regain total control over distribution of content rather than to license it to everyone, and share in revenues (as is, strangely enough, happening with Google and the record labels in China!)? I hope not.
Second, Kevin seems to want to have the illegal files (again.... that means all files, really) be automatically replaced with copy-protected files (did you think those were retired, too...?) that must be purchased by the user, via the ISP.
In other words, let's just re-insert Total Control back into the system, and force every Internet single user to a) pay whatever the price is (without having any say on that) b) use ONLY approved devices that can play back the DRM'ed content. If that's future of digital content... count me out (along with 98% of the online population I would say). Put that Content under the rock again!
This scheme is too painful even to just contemplate; I mean it's so far out that it hurts... so, over to you guys, for comments, please.
My final thought: this reminds me a lot of the recent Onion video ('Google Opt-out Village') that makes fun of how you can regain 100% of your privacy on Google. Watch it and make the connection;). More on this, soon. Update: Read GigaOm's take.
I was delighted to be invited to make a contribution to the RSA Journal's July 2009 edition, the printed version of which was just send out I believe, and the online edition that just went up on their website.
The complete title of my piece is: "The price of freedom - reinventing the online economy: Gerd Leonhard explains why ‘free’ content can still pay in the long term" and I really enjoyed writing this for them.
Following my last presentation at the RSA, in April 2009, on 'The Future of Content and Creativity' I have had many good conversations about this topic. The audio track from this event is here, btw; and the video is embedded again, below. Enjoy. And RT;)
I definitely recommend that you check out the other great features in the Juy 09 RSA journal, as well, there's some great gems in there.
You can read the entire thing on the RSA page, so here is just an excerpt:
"Free information, free music, free content and free media have been
the promises of the internet (r)evolution since the humble beginnings
of the World Wide Web and the Netscape IPO on 9 August 1995. What
started out as the cumbersome sharing of simple text, grainy images and
seriously compressed MP3s via online bulletin boards has now spread out
to every single segment of the content industry – and even into
‘meatspace’ (real-life) services such as car rentals. Without a doubt,
‘free’ has become the default expectation of the young web-empowered
digital natives and now the older generations are jumping in, too.
On
top of the already disruptive force of the good old computer-based
Web1.0, we are witnessing a global shift to mobile internet – a WWW
that is, finally, so easy to use that even my grandmother can do it.
While five years ago, we needed a ‘real’ computer tethered to a bunch
of wires to port ourselves to this other place called ‘online’ and
partake in global content swapping, now we just need a simple smart
phone and a basic data connection. With a single click of a button,
we’re in business – or rather, in freeloading mode.
As users,
we love ‘free’; as creators, many of us have come to hate the very
thought. When access is de facto ownership, how can we still sell
copies of our creations? Will we be stuck playing gigs while our music
circles the globe on social networks, or blogging (now: tweeting) our
heart out without even a hint of real money coming our way?
Daunting
as it may seem, we can no longer stick with the pillars of Content1.0,
such as the so-called fixed mechanical rate that US music publishers
are currently getting ‘per copy’ of a song ($0.091). Nobody knows what
really defines a copy any longer when the web’s equivalent of a copy
(the on-demand play of that song on digital networks) may be occurring
hundreds of millions of times per day. No advertiser, no ISP and not
even Google has this kind of money to pay the composer (or rather, the
publisher), at least not until the advertisers start bringing at least
30–50 per cent of their global US$1 trillion marketing and advertising
budgets to the table.
Traditional
expectations and pre-internet licensing agreements are exactly what are
holding up YouTube’s deals with the music rights organisations such as
PRS and GEMA: this is what the rights organisations used to get paid
for the music that is being copied, and this is what they want to get
paid now. This impasse is causing significant friction in our media
industries worldwide. Yet, below the top-line issue of money, there
lurks an even more significant paradigm shift: the excruciating switch
from a centralised system of domination and control to a new ecosystem
based on open and collaborative models. This is the shift from
monopolies and cartels to interconnected platforms where partnership
and revenue sharing are standard procedures. In most countries,
copyright law gives creators complete and unfettered control to say yes
or no to the use of their work. Rights-holders have been able to rule
the ecosystem and, accordingly, ‘my way or the highway’ has been the
quintessential operating paradigm of most large content companies for
the past 50 years.
Enter the internet: now the highway has become
the road of choice for 95 per cent of the population, the attitude of
increasing the price by playing hard to get is rendered utterly
fruitless. Like it or not, a refusal to give permission for our content
to be legally used because we just don’t like the terms (or the entity
asking for a licence) will just be treated as ‘damage’ on the digital
networks, and the traffic will simply route around it. The internet and
its millions of clever ‘prosumers’, inventors and armies of
collaborators will find a way to use our creations, anyway. Yes, we can
sue Napster, Kazaa or The PirateBay and we can whack ever more moles as
we go along. We can pay hundreds of millions of dollars to our lawyers
and industry lobbyists – but none of this will help us to monetise what
we create. The solution is not a clever legal move, and it’s not a
technical trick (witness the disastrous use and now total demise of
Digital Rights Management in digital music). The solution is in the
creation of new business models and the adoption of a new economic
logic that works for everyone; a logic that is based on collaboration,
on co-engagement and on, dare we mention it, mutual trust – an
ecosystem not an egosystem. Once we accept this, we can start to
discover the tremendous possibilities that a networked content economy
can bring to us.
Free, feels-like-free and freemium
Much
has been written on the persistent trend towards free content on the
net. It is crucial that we distinguish between the different terms so
that we can develop new revenue models around all of them. ‘Free’ means
nobody gets paid in hard currency – content is given away in return for
other considerations, such as a larger audience, viral marketing
velocity or increased word of mouth (or mouse). I may be receiving
payment in the form of attention, but that isn’t going to be very
useful when it’s time to pay my rent or buy dinner for my kids. Free
is... well, unpaid, in real-life terms.
‘Feels-like-free’, on
the other hand, means that real money is being generated for the
creators while their content is being consumed – but the user considers
it free. The payment may be made (ie sponsored or facilitated) by a
third party (such as Google’s recently launched free music offering in
China, Top100.cn); it may be bundled (such as in Nokia’s innovative
‘Comes With Music’ offering, which bundles the music fee into the
actual handsets) or the payment may be part of an existing social,
technological or cultural infrastructure (such as cable TV or European
broadcast licence fees) and therefore absorbed without much further
thought. Feels-like-free could therefore be understood as a smart way
to re-package what people will pay for, so that the pain of parting
with their money is removed or somewhat lessened – everyone pays,
somehow, but the consumption itself feels like a good deal...." Read on. PDF: Download RSA - The price of freedom Gerd Leonhard July 2009
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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Traditional
expectations and pre-internet licensing agreements are exactly what are
holding up YouTube’s deals with the music rights organisations such as
PRS and GEMA: this is what the rights organisations used to get paid
for the music that is being copied, and this is what they want to get
paid now. This impasse is causing significant friction in our media
industries worldwide. Yet, below the top-line issue of money, there
lurks an even more significant paradigm shift: the excruciating switch
from a centralised system of domination and control to a new ecosystem
based on open and collaborative models. This is the shift from
monopolies and cartels to interconnected platforms where partnership
and revenue sharing are standard procedures. In most countries,
copyright law gives creators complete and unfettered control to say yes
or no to the use of their work. Rights-holders have been able to rule
the ecosystem and, accordingly, ‘my way or the highway’ has been the
quintessential operating paradigm of most large content companies for
the past 50 years. ![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=7d8e6328-1d47-418b-bd32-757aa729f7ee)
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