Music industry expert to Mandelson: Legalise it! Media Futurist Gerd Leonhard says that musicians, labels and government need to focus on their wallets rather than technology if they are to save music from the threat of illicit music downloads on the internet. Speaking ahead of the event, the “Future of Music / Stop Disconnection”, Gerd (who advises many of Europe ’s top InternetService Providers) said: "Music industry lobbyists are saying unpaid downloads are killing our business. In response, the UK government is now considering legislation that would allow people who illicitly download to be disconnected from the Net without a court process. This leaves many musicians scared and perplexed, some arguing for disconnection, others for their own fans to be restricted to dial up speed internet. Neither will see the artists or labels paid more or the relentless advance of online music sharing halted.”
“Back when UK radio stations were not licensed to play music at all, the arrival of the PPL (1934) and MCPS-PRS (1914) collective music licences opened the door for proper payment for music performed in public. We now need the government to legislate for music online, and mandate the creation of a Digital Music License that will put money into the pockets of the creators while giving the consumers what they want, at the same time.”
Great conference in Berlin, today: All-together-now (A2N). Finally, here's a place to discuss real innovation in the music industry - this event has real potential, imho, even though it could have been positioned to be more international, right from the start (most discussions were in German, but translation was available... good start), and some speakers were rather stale - but nothing that can't be fixed.
I will blog more about this, later, for now, here is the PDF of my presentation "Music Like Water". A2N's twitter feed is here, the tweet feed (#A2N) is here.
Legalize it: a public, collective, open License for the use of Music online
Collaborative efforts to develop new, web-native revenue streams
A new social contract for Content
P.S: I tried a new template for my presentation, this time, following some critique on my slide-designs, via my tweeps... hope you like this better, please let me know!
Does the French President Sarkozy have a secret wish to self-destruct, or to lead France out of the European Community? Maybe this is the reason that the ludicrous 3 strikes idea keeps surfacing in France, see the coverage by TelecomTV below (and the other links).
But here is the real morsel (from The Register UK): "France's Ministry of Culture estimates that 1,000 people a day could be cut off from the internet under the bill. After first being sent a warning email and then a formal letter by
Hadopi, those accused of illegal file- sharing for a third time could be
disconnected for up to a year and face a €300,000 fine and jail time. Even those found guilty of "negligence" for allowing others (such as
their children) to pirate online material risk a month-long internet
suspension and a €1,500 fine..."
Maybe I am wrong but I can't imagine that these kinds of ideas are very popular with the voters, no matter what the business problems and the lack of innovation within the content industry are. Sure, politicians can have nice dinners with the music industry VIPs and smart lobbyists, and get VIP concert tickets, but this will not help them to get re-elected when the time comes.
But before that, action is required, because unfortunately the same debate is also raging in the UK. So if you live in London, or are visiting, I will be contributing a speech at an anti-3-strikes event called "Stop Lord Mandelson" on October 2, in London, at 7 pm, together with David Rowntree (Blur) and Ben Goldacre (Guardian / Bad Science), organized and moderated by Jim Killock (Open Rights Group UK). Please join me, and / or spread the word.The petition is here. My slide-show response to Hadopi / French-trois-strikes is here. My summary of Cory Doctorow's 2008 (!) comments on 3 strikes are here. On a more humorous note, check out these funny 'PiratesPrisons' videos.
"As expected, the French National Assembly has approved an amended version of the three-strikes legislation, designed to curb illegal file sharing, slung out earlier this year. When will they realise that none of this is going to work anyway" writes By Ian Scales. "The three-strikes issue now appears to have settled into a familiar left v. right split in France with the right-leaning majority UMP voting 'for' and the Socialist party against. Internet rights campaigners across Europe have been trying to keep the issue de -polarised since there is a substantial body of right-leaning libertarian politicians who are against the three-strikes approach but who may be lost if it all becomes too clearly identified with the left. In France at least, that doesn't appear to have worked..."
El 29 de junio de 2007, mientras estaba en London Calling, fui invitado a hablar a un pequeño grupo de líderes de sellos independientes en su reunión anual AIM / WIN
en Londres. Aproveché esta oportunidad para dar un vistazo a lo que
debe suceder para que las compañías de música independiente realmente
puedan sacar provecho de la nueva economía de la música que se está
desarrollando en estos momentos. Así que … algunos de mis pensamientos
se comparten a continuación.
Hoy quiero presentar mis opiniones sobre lo que me gusta llamar
“Música 2.0″ – la próxima generación de la industria de la música que
se está creando en estos momentos. Este nuevo modelo es radicalmente
diferente. Muchos de las viejas formas de hacer las cosas, muchas de
las relaciones anteriores y muchas de las viejas tradiciones no pueden
y no van a sobrevivir.
Quiero seducirlos, a ustedes los líderes de la industria de la
música independiente, a recorrer este nuevo camino conmigo, para dar un
salto, para dejar algunas de sus presunciones y sus ‘religiones’ a un
lado, y hacer jugadas audaces – porque esto es lo que se necesita para
darle la vuelta a este barco. Scott Fitzgerald, el famoso novelista, dijo: “La prueba de una
inteligencia de primer orden es la capacidad de tener dos ideas
opuestas en la mente al mismo tiempo, y todavía tener la capacidad de
funcionar”. Este claramente es el desafío de la industria de la música
para avanzar!
Las innovaciones técnicas y económicas durante los últimos 10 años
han despojado de muchas tradiciones, jerarquías sociales y económicas y
monopolios a la industria de la música, y si hubiera una cosa que
pudieramos decir con seguridad creo que sería que ahora es tiempo del
show, que finalmente la industria de la música ha llegando a un punto
de inflexión importante: 10 años después de que la primera empresas
.com sacudió la tierra. Le tomó mucho más tiempo de lo que todos
pensamos pero la está golpeando mucho más duro ahora: las ventas de CD
han caído entre un 20 – 40% en lo que va del año, y las ventas
digitales no están haciendo la diferencia en el corto plazo – y la
carrera de un solo caballo que es iTunes claramente está en un callejón
sin salida.
Nos estamos acercando rápidamente a un punto donde nos vemos
obligados a sumergirnos en lo que me gusta llamar “Music2.0″ – un nuevo
ecosistema que no se basa en la música como un producto, sino en la
música como un servicio: primero se vende el acceso, y sólo entonces se
produce la venta de copias. Se trata de un ecosistema basado en la
ubicuidad de la música, no la escasez. Un ecosistema basado en la
confianza mutua, no el miedo.Como dice Don Tapscott, en su gran libro “Wikinomics”, podemos
pensar en Web 1.0 – la “antigua” web – como una especie de periódico
digital, mientras que Web 2.0 es un lienzo que permite que la
información sea presentada, compartida , modificada, y remezclada. Se
trata de la interactividad, las opciones de envío y recepción lo que la
hacen útil y «especial». Y sobre todo en la música, que siempre, desde
el principio, ha sido acerca de interactividad, de compartir, de
participar – no de vender-vender-vender...
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?"
This is the Drop.io streaming version of my talk at Google San Francisco "The End of Control and the Future of Content", see my previous blog post for more details and the PDF. Bottom Lines: The fight for Control was
a fight for Distribution. The flight for Attention is a fight for
Trust. The beneficiaries of Control were Monopolies. The beneficiaries
of Trust are those that Collaborate. Advertising 2.0:
Information becomes Conversation. Interruption becomes Engagement.
Annoyance becomes Entertainment. 'This is an Ad' becomes 'This is
Content'....
The Youtube Video is here (unfortunately not in very good quality). Download the MP3
Update: a good comment by TelecomTV (Ian Scales) - I especially love their addendum to Spotify's logo: "Not Licensed to Kill" - great summary.
Before I get into the meat of this post, let me say this, for the record: I really like Spotify, the official new darlingamong the many on-demand streaming and interactive music services that try to go to the legitimate route and make deals with the rights-holders, ie. the record labels and the music publishers.
I like the Founders, I like some of their investors, I like what they are saying and how they do things. I even like their logo. We have met several times in the past - and something tells me Daniel et al may been reading my books and this blog, as well... all good this far.
So please note: this is not at all an attempt to rain on Spotify's well-deserved parade or discourage their investors. I am writing this post because I want Spotify to live, grow and prosper, not because I want it to crash. My comments, below, are simply meant to serve as a not-so-gentle reminder for a simple fact that we should keep in mind: while Spotify may look (or rather, sound) pretty, right now, no matter how hard they try and how much money they will raise, they cannot possibly succeed within the current music industry ecosystem, and they - by themselves - cannot possibly change that ecosystem single-handedly.
The primary reason for this is that there is no public (i.e. compulsory) license that is available for these kinds of services; therefore Spotify (and anyone else that streams music on-demand) has zero leverage whatsoever in the rights negotiations - and therefore, the entire pricing and overall economic model - with the record companies and publishers. In other words, they simply have to pay whatever it takes. And they are, indeed. Without a public license in place, this kind of situation is pretty much a suicide mission.
In my humble opinion, the chances of Spotify surviving beyond next 24 months, in the current music industry framework (call it '1.4' maybe - since we are still a long way from the Music 2.0 models that I and many of my readers and 'followers' have been discussing for the last, ouch... decade) are similar to... well, the likelihood of having a cold day in hell.
If Spotify - as a possible embodiment of those Music 2.0 concepts - is to live than the entire SYSTEM must be changed - no less, no more. If you like Spotify than this, below, is what you must ask for.
Spotify (and most other legal music ventures like it) won't survive unless:
A public, open, fully standardized, compulsory,multi-territorial and collective digital music licenseis agreed upon and instituted by law or by collective, voluntary action, SOON. Voluntary action seems highly unlikely at this point given the seriously monopolistic structure of the music industry, and the stellar 'my way or the highway'- track record of most industry bodies.
Just like the existing Radio and TV / Broadcasting licenses, such a Digital Music License will need to be a license that conclusively and pan-territorially (i.e. pan-EU, pan-Asia, US, and then, worldwide) regulates the basic commercial terms for the use of the master recordings and the underlying compositions for anyone that may want to offer or provide music online, regardless of whether it's streaming or downloading - because this decidedly 'Web 1.0' distinction is simply wishful thinking, going forward - access means copy, today. ISPs, search engines, social networks, telecoms, operators and Internet portals need to be able to avail themselves of a standard, ready-to-go license, just like anyone that starts a terrestrial radio station can use an existing license to calculate their music costs, today.
Anyone that has had the misfortune of wanting to 'do the right thing' and license music for any 'new media' i.e. online venture will agree with me on this: the current music rights licensing situation is nothing short of ridiculous, and to many outsiders the process feels like a cut & paste rendition of various "Twilight Zone" episodes. The ineffective and convoluted way that digital music rights are still being dealt with today is a disgrace that keeps causing continuous train-wrecks for anyone that wants to enter the business (and cares to do it legally), and the continuing inability of the industry's 'leaders' to solve these issues flies in the face of the massively increased consumer demand for digital music in all shapes and forms, across the globe.
I know... you may be ask: ok, yes that's not good, but if we were to license more efficiently...where's the new money? Here is my response, and I've said it many times: the problem is not that the 'people formerly known as consumers' don't want to pay for music - they just don't want to pay in those ways that the industry is currently asking them to. This is not a problem of total copyright disregard by the consumers - it's just a tollbooth-strategy question: provide real value and get real value - that is the only future there is! Maybe.. do what Google does?
But so far, all the music industry lobbying groups (e.g. the RIAA, the BPI, and the IFPI) and their brilliant lawyers have done is to ask Billions of people to change rather than consider changing, themselves, so that maybe they can actually start serving those people. Why is anyone still paying attention to these people?
Begging for mercy: Spotify's unenviable routine.
As a consequence of these stone-age business practices that prevail in the music industry, Spotify has to essentially jump off the cliff every time they license a new song, and beg to do things legally 24/7/365, i.e. beg for licenses, from each label and each publisher or rights society, in each country, every couple of months, and for every tiny change they make in their business model. For unlike Youtube/Google, Spotify has ZERO real leverage - while the international music conglomerates and legal rights-holders (reminder: not the artists!) have TOTAL CONTROL - if the deal is not to their liking they can just refuse a license thereby rendering Spotify either instantly illegal (i.e. unlicensed) or have their users evaporate quicker than you can spell 'dead'. There is simply no way that anyone can negotiate a win-win deal in a situation like this - especially when your potential deal partners have such a long history of using pre-Internet laws a weapon to kill competition and innovation.
This legal vacuum has led to a bizarre situation where the major record labels (as well as many large independents and / or their industry associations) can basically ask for anything - they simply have the exclusive rights for these recordings, so it's their way or the highway. The same goes for the publishers, and as long as refusal to license is a sustainable option this won't change (remember when the phone companies did not have to share access to their networks with other providers...?)
And you can bet we are not just talking money here - we are talking about having to give equity to the (large?) labels, for the mere pleasure of being legal, and for being mercifully allowed to reinvent how music is being monetized. This has not changed since the days of my own streaming music widget company, Sonific - you can read all about what happened to us, here. I have been there, done that, and this industry is STILL at the same place: the music licensing system is simply dysfunctional and the markets will NOT self-regulate. Vivan Reding and the EU Commission: are you listening?
There will be no real solution for this problem until the monopolies that currently serve as the foundation of the music rights society system in most countries (not in the U.S. btw!) are done away with; until pan-European or global licensing can be achieved via a one-stop, digital, fluid and transparent service platform. And just to preempt the obvious responses on this: when I say that the monopolies need to go I am not at all saying that these societies need to go. Absolutely not. However, if you base your very existence on the practice of merely extracting value rather than adding value I don't see how you could possible expect to have a role to play in a digitally networked future, either. So, while the concept of licensing collectives are and will remain crucial, they cannot be very useful in the digital economy unless they are constantly adding value and become 100% open and transparent. Monopolies just don't fit in this concept - or do they?
Back to Spotify: because they are enormously successful and popular right now, and because of all the other players in this turf that have paved the way and are still in the running (Last.fm, iMeem etc), and because of all the other players that tried and gave up (Yahoo Music, Musicload, MSN Music) or are about to give up (Napster, Rhapsody, MSFT), we need to make this issue a public, political, cultural and wider business issue.
We need music to be licensed for the Internet just like we license it for radio, today: with a public, open, collective and standardized license that does away with the monopolies of permission that have held us back for a decade, already.
I guess really this is POLITICS now - even the European Commission has already stated that "The failed music industry business model is causing online piracy" - so if you like Spotify it's time for action (hey - there's another post - but here is a preview of my 2 cents)
Finally, let me borrow some authority here: "Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek" (President Barack Obama)
Access to music - i.e. a simple click-to-play, anywhere, anytime, anything - is replacing ownership. This trend will quickly accelerate due to the massive global build-up in cheap wireless broadband connectivity, leading us swiftly to the point where listening to a song will be exactly the same as downloading it (at least in practical terms, from the users' perspective). Some of us would argue that this is already the case, of course, but in terms of mass-scale user adoption I would say we are about 18 months away from the pivot point in the so-called developing countries.
The music industry needs to urgently get ready for this: sell access not (just) copies. Bundle. Package. Develop those new generatives. "When copies are free you need to sell things that can't be copied" (Kevin Kelly, The Technium).
Another important trend to embrace is the move to mobile devices that will pretty much replace the computer as primary access point to the Internet i.e. to all digital content. Mobile applications for smart-phones will take the place of sound-carriers; music will be sold as/in/via/with software. Read how Pandora is doing this, in the U.S.
I made a very short video on the same topic last week (90 secs) and a lot of people have pinged me to make a longer version - so here it is, in 2 parts (thanks to Youtube's really annoying 10 minute limit).
Alright then... you don't think "Music 2.0 in 90 seconds" is enough. You don't think 3 minutes really do it, either. You liked the PDF but you want the talk. I heard you. So here is the full 18 minutes of Music 2.0, in 2 parts, thanks to the ingenious Youtube limitations (but hey... it's HD now so why am I complaining?).
Here is a link to the MP4 file (410MB) if you want to watch on while biking in the woods;) Plus: remember that you can get it all for your iPods and iPhones by subscribing to my GerdTube.net / Blip TV iTunes feed (except for this one, though - for some reason the encoding just won't work for this file).
The amazing power of online networking and collaboration, open platforms, creative commons licensing and crowd-sourcing (whew... that's a mouthful!) has manifested itself once again: for the past 9 months, the tenacious and dedicated Zvonimir Dusper (Dus) from Croatia (LinkedIn profile) has been hard at work translating my entire Music 2.0 book into Croatian language (see the English book site here, download the English version as a PDF here, buy the dead-tree version or U.S. letter size book PDF at Lulu, here, visit the Amazon.com book page [incl. reviews] here).
The book is now available as a free PDF download and in a print version via Zvonimir's Glazba2.0 site - check it out and please forward this post to anyone that may be interested in reading Music2.0 in Croatian (you can use the tools provided, below)
To receive the free PDF please use the email box on the left site of the Glazba2.0 site (see here >). Enjoy!
PREDGOVOR HRVATSKOM IZDANJU Tematika “2.0” u posljednje vrijeme sve više okupira medije (nove i stare :-), pa smo, osim već razvikanim Webom 2.0, sad bombardirani i Novinarstvom 2.0, Marketingom (komercijalnim ali i političkim!) 2.0, Ekonomijom 2.0, Sociologijom 2.0 i drugim raznim inačicama tog fenomena, među kojima nas, ljubitelje glazbe i/ili glazbene profesionalce, najviše zanima upravo tema ove knjige – Glazba
2.0. Riječ je o promjeni iz sustava kojim je dominirao princip “od-vrha-prema-dole”, u sistem “od-dole-prema-vrhu”, u kojem korisnici/potrošači svojim sudjelovanjem u interaktivnim online mrežama grade tkivo budućih socijalnih ekosistema. Pažnja je postala nova valuta, a poslovni princip vrlo jednostavan – ako je privučeš dovoljno da se posuda prelije, višak možeš lako pretvoriti u novac. Kako god to zvučalo jednostavno, živjeti u 2.0 svijetu znači imati hrabrosti za radikalnu promjenu svojih navika, i odustajanje od tradicionalnih očekivanja i (nerealnih) projekcija budućnosti. Budućnost ne dolazi, ona je već tu, samo je neravnomjerno raspoređena – da citiram Johna Cage-a (taj sam citat, naravno, “pokupio” iz ove knjige :-) ....
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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