1. BACKGROUND
- Consumer Concerns
- Find and identify music they like
- Time shifting and transport the experience
- Make sure your $ benefits the band, so they prosper
- Try before you buy
- Freedom from marketing/advertising if so desired
- Tribalization vs. Mass-market:
- are people in smaller tribes less likely to screw one another
because they know each other
- Business Concerns (Respect -> Trust -> Money)
- "The path of least resistance makes men and rivers crooked."
- Reeducation of consumers
- Protect the businesses' investment made in marketing/promotion
- Fear of change, learning new approaches, losing stability
- Loss of control, elimination of the middleman
- Artist Concerns
- Fair compensation for your product
- Equitable share of cash stream
- Access to the promotion machine
- Recognition
- BBQ Concept of Fair Use
- Noncommercial use
- Private exhibition (small audience)
- Excerpt with reasonable modification
- Personal duplication
- Benefits of the Labels/Machine
- Protection from theft
- Marketing investment (VC for artists)
- Sharing the risk
- Manufacturing and distribution
- Filter - good and bad?
- Is a label a brand or a machine
- Tellarc/Blue-Note vs. Sony/EMI
- Exposure to facilities
2. BUSINESS MODELS
- Blanket Licenses by Royalty Collection Agencies for the ISP's
- Royalty collection charging ISP's
- Retail
- Brick & Mortar/per unit royalty
- Click & Order
| |
The old MACHINE |
New Model |
| The label |
Traditional Record
Labels
BMG, WEA, Sony |
MP3.com, IUMA |
| The station |
Broadcast networks
(radio, TV) |
ISP's |
| Revenue stream |
Royalty collection
Agencies
ASCAP, BMI, Harry Fox
Charging broadcast |
Royalty collection NEXT
GENERATION
Charging ISP's |
| Free trade |
NO $$$ |
Peer to Peer
Royalty collection
charging ISP's |
| Retail |
Brick & Mortar/per unit
royalty: Tower, Virgin |
Click & Order
Amazon, CDNow |
- Royalty and Subscription Models
- ISP becomes (radio station) cash distribution point (ASCAP, BMI,
SESAC, Harry Fox)
- ISP may select surcharge for royalty collection
- Direct Subscription/Consumer Patronage
- No middleman/machine
- "Fair" pay for what you use
- But what if (avoiding subscription) Peer to Peer?
- Artist centric; requires granularity
- Institutional Patronage
- Government
- Non Profit, Corporation for Public Broadcast
- Corporate, NASCAR/Miller Beer Ad Model (Sponsorship, Advertiser
is Patron), Merchandising Opportunity, Frequent Flyer Incentives
- Individual Philanthropist/Patron, Performance Based, Artist-level
Value-adds
3. FOOD FOR THOUGHT
- Is there a New IP?
- Expression of commercial value, not unitary
- Is putting a speed bump in place to keep honest people honest a reasonable
solution?
- Will IP survive?
- Is it valid?
- Does IP law stimulate creativity/innovation?
- Whose soul is being saved?
- Consumer? Artist?
- Please the consumer / Make a buck / Save their soul
- China? The Internet is GLOBAL
4. POTENTIAL ACTION ITEMS
- Create Watchdog Groups (Royalty Collection Agencies)
- Distribution of Information
- Endorse Blanket Licensing of ISP's
- Or: Drop The Bomb, Kill Them All!
section 6
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