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Classical Music Communities New Models of Distribution!

Soundstreams!Toronto!080522!

Paul Hoffert!

We Live in a Global Village

Harmonized Products, Services, & Programs!

•  Across Territorial Boundaries!

•  Across Political Boundaries!

•  Across Cultural Boundaries!

REALLY?!

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NO - Info Age is Local

Infrastructure IS Global!•  Banking and Communications!

BUT,!Content and Culture are Local!

Is The Global Village a Myth?

We Think Global, But We Act Local!

•  We Trust Only 20 People !

•  We Keep Track of Only 150 People!

•  We Recognize Perhaps 1,000 Others!

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Example 1

MacDonalds Hamburgers!•  Chorizo Burgers in Mexico!•  Fish Burgers in Nova Scotia!•  Asterix, the Belgian Comic Book

Character has replaced Ronald MacDonald in European Advertising and Marketing!

Culture Harmonization

Images of Sex And Violence!•  Cross Cultural, Linguistic Boundaries!

Trans-National Movies = Few Words!•  Sylvestor Stalone, Jim Carrey!

EuroVision Music Show!•  Sex and Violence Images!•  Trans National!•  Trans Cultural!

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Example 2

Marvel Comix Introduced Spiderman India in 2004!Local Indian Customs, Culture!

•  Spider-Man Mythology More Relevant Locally!

Pavitr Prabhakar Of Mumbai!•  Not Peter Parker of Queens, New York!

Pavitr Leaps Rickshaws & Scooters!•  In Indian Streets!

•  Swings From Taj Mahal!

Spiderman (India)

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Example 3

Internet Filtering!•  Sexual Taboos (Cultural)!•  Arab Countries…!

•  Political Taboos!•  China…!

One Nation’s Entertainment and Information is Another Nation’s Concern!

Example 4

French & Dutch Euro NO Vote !Infrastructure Harmonization YES!

•  Euro!Political Harmonization NO!

Cultural Harmonization NO!Contents Harmonization NO!

•  LOCALIZATION INCREASING!•  GLOBALIZATION DECREASING!

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Challenge to Nationhood

Globalization of Culture Threatens National Sovereignty!

United Nations Guarantees!1.  Territorial Integrity!2. Cultural Integrity!

Cultural Content Gap

We Need to Support!

•  Local Stories!

•  Local Faces!

•  Local Voices !

•  Local Language!

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Local -> Global Actor

Current CBC Challenges

Cutbacks to Classical Music Support!

•  CBC Vancouver Orchestra Eliminated !

•  Suspend Production of Classical CDs!

•  Ehnes Grammy 1st and Last!

•  Radio 2 Classical only 10 AM – 3 PM!

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Info Age Music Opportunities

New Marketing for Classical Music!

New Sales for Classical Music!

Replace or Exceed Historic CBC Support!

Need to Identify How to

Promote Local Content!

Promote Local Languages!

Promote Local Culture!

Promote Local Business!

Expose Local Artists Globally!

Monetize Music Use in New Ways!

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Changing Entertainment Business

20th Century Model!•  Manufacturing and Selling Products!•  Supplier Centric!•  Controlled Distribution!

21sh Century Model!•  Monetizing Experiences!•  User Centric!•  Viral Distribution - P2P!

•  Technically & Financially Necessary for TV/Film!

Problem Not Unique to Canada

Nordic Music!•  Danish!

•  Finnish!

•  Icelandic!

•  Norwegian!

•  Swedish!

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Online Channel is Different

Physical Distribution!•  Limited Shelf Space!

•  Sheet Music!

•  Recordings!

•  Few Titles -> Most Consumption!

Online Distribution!•  Unlimited Shelf Space!

•  Many Titles -> Most Consumption!

•  Long Tail Consumption Curve!

Rise of Amateurism

Home Recording Studios!

Computer Notation Programs!•  Output is Digital File!

MIDI!•  Imperfect But Easy and Universal!

File-Sharing, P2P!•  Sampling!

•  Remixing!

•  Mashups!

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Long Tail of Consumption

Everything You Can’t Buy at the Local Mall, Where Shelf Space Limits Customer Choice!•  Back Catalog!

•  Niche Audiences!•  Unusual Styles, Instrumentation!

Total of Infrequently Accessed Content is Greater than Frequently Accessed Content!

Long Tail Graph

Power Law Curve!

Yellow Portion is Long Tail!

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Long Tail Book Sales

Blue is [Nielson] Sales of Mall Stores!Red is Long Tail Sales of Online Store!

Definition of Long Tail

Key Factors!•  Cost of Inventory Storage!•  Cost of Distribution!

When Costs are High, Only the Most Popular Products Can Be Sold!

Example: Movie Rental Stores vs. NetFlix!•  Netflix finds that aggregate "unpopular"

movies are rented more than popular movies!

Cultural and political impacts!•  Minority Tastes are Catered to!•  Individuals Have Greater Choice!

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But, How Can We Find Titles?

Normal Search Engines Find Most Popular Titles First and Foremost!

How Can We Search the Log Tail?!Communities of Interest!•  Sigs, Chats, BBs !

Authorities!•  Professionals (Publications, Reviewers)!•  Academics!•  Peers!

Contest Winners & Festivals!

Automated Recommendations

Niche Vox Populae !

Others Who Liked Your Choices Also Liked…!

Automated Analysis of Music!

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Subscription Video

Roku Netflix Box $100 + $9/mth unlimited!•  aggregate “unpopular” movies are rented

more then aggregate “popular” movies !

Subscription Audio

Noank Model!85% fees to Content Owners!China First!•  24 million University Students!•  $10/semster content fee ($20 annual)!•  = $480 million!

North America & other BRIC soon!Count Consumption!

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We Were Couch Potatoes

Now We’re Interactive

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Will We Be Fried Potatoes?

Role of Music Centers

Nordic Information Centres Have Greatly Increased Online Activities with Excellent Results for Local Record Companies, Promoters and Artists !

Canadian Music Centre Has Increased its Online Activities with Good Results and Could do More With Increased Support from Industry and its Members!

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Key Issues

How to Expose Audiences to Classical Music Content so as to Trigger them to Close Transactions?!•  Sell CDs!•  Sell Merchandise (Wolfgang’s Vault)!•  Subscription Service!•  Live Attractions!•  Advertising!

A Student Said to Prof. Einstein: ”The Questions On This Year’s Exam are the Same as Last Year.”!

Einstein Replied: “Ahh, But This Year, !

THE ANSWERS ARE DIFFERENT ”!

The Future Is Not What it Used to Be

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Classical Music Communities New Models of Distribution!

Soundstreams!Toronto!080522!

Paul Hoffert!