Unto Us The Machine Is Born
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Presents…
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Unto Us The Machine Is Born
By Weston Ludeke
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Intelligent control appears as uncontrol
or freedom. And for that reason it is genuinely intelligent control. Unintelligent control appears as external domination. And for that reason it is really unintelligent control.
Intelligent control exerts influence without appearing to do so. Unintelligent control tries to influence by making a show of force.
-Lao Tzu
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Humans began animating inert objects with tiny slivers of intelligence, connecting them into a
global field, and linking their own minds into a single thing. This will be recognized as the
largest, most complex, and most surprising event on the planet. Weaving nerves out of glass and radio waves, our species began wiring up all
regions, all processes, all facts and notions into a grand network. From this embryonic neural net
was born a collaborative interface for our civilization, a sensing, cognitive device with
power that exceeded any previous invention. The Machine
provided a new way of thinking (perfect
search, total recall) and a new mind for an old species. This is the Beginning.
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There is only one time when it is born. You and I are alive at this moment.
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“Amplified
is a music talent agency and marketing firm. It was formed to exploit and profit from the glaring need for musicians to promote and sell
their product with complete, independent control of their craft. We are foremost a full-service music talent agency operating to serve the best interest
of each client. Our mission is to meet the need for more knowledgeable music-centered agents and to
help musicians create innovative solutions and informed choices to grow their audience and
revenue. We provide a pool of resources for our clients and negotiate on their behalf deals with
booking agents, independent promoters, merchandisers, endorsers, lawyers, accountants,
business managers.
We don't make the music you listen to...
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“We Make The Music Come Alive”
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The Machine
begets The Network Economy
This presentation will focus on three things primarily effected by this shift:
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Music 2.0
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Web 2.0
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Life 2.0
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Our goal is to help our clients navigate through the chaotic waters of The Network Economy
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…and harness the collective wisdom of The Swarm
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This planet-sized computer is comparable in complexity to a human brain. Both have hundreds of billions of neurons (or
Web pages). Each biological neuron sprouts synaptic links to thousands of other neurons, while each Web page branches
into dozens of hyperlinks. That adds up to a trillion "synapses" between the static pages on the Web. The human
brain has about 100 times that number - but brains are not doubling in size every few years. The Machine is.
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Each device is a differently shaped window that peers into the global computer. Nothing converges. The
Machine is an unbounded thing that will take a billion windows to glimpse even part of. It is what you'll see on
the other side of any screen.
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Traditional Distribution Network Distribution
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The Bottom Line:
We have already lost control of how, when, and if people are paying for music
Our current laws and policies, traditions, economics, or ethics have not been able to
maintain, or enforce, the desired control over music commerce
Is it unreasonable to fruitlessly pursue the kind of control we are used to, or should we
embrace and prosper based on a different paradigm:
less control but more $$?
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Scarcity Abundance
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Scarcity Abundance
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mScarcity Abundance
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Scarcity Abundance
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Scarcity
Abundance
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We must begin to think like ‘Digital Natives’“Like many of you in this room, I am a digital immigrant… Our children on the other hand are digital natives. They will never know a world without ubiquitous broadband internet access…
We may never become true digital natives, but we can and we must begin to assimilate to their culture and way of thinking.”
-Rupert Murdoch, April 2005
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The Enemy
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“If you had Coca-Cola coming through the faucet in your kitchen, how much would you be willing to pay for Coca-Cola? There you go, that’s what happened to the record business.”
–Doug Morris, CEO, Universal Music Group
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•Just stick a damn meter on the music faucet.•Collect a small “feels-like-free” usage fee. •Track each file with a unique track DNA. •Each artist gets royalty payment from total revenue based on number of downloads
Music Like Water
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The Right Idea:
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But Mr. Peabody, I’m still confused!
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Imagine you're a farmer in the 19th century headed into the 20th. The intrinsic value of food won't go away in the new century, but as food becomes cheaper and cheaper to produce, the share of economy devoted to agriculture will shrink, and so will your margins. Better to get into manufacturing, or at least into food processing.
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Record label fronts ‘advance’Label retains masters/copyrights
Touring/Merch is separateArtist is lucky to net 15% after label recoups
Traditional Record Industry Model:
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The music is freeEndorsements/sponsorships
Handle concert bookings & merchandiseArtist retains creative control, mastersArtist keeps 90% of all gross revenues!
360° Business Model
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New Model
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As the barriers of entry have been reduced to
“zero”, and everyone has close to the same access to the viral distribution
channels, the new question is how to
maximize “mindshare,” that is, how to gain the
widest possible audience for one’s art and to be in a position to maximize
profit.
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Music 2.0 Models Must Be Based On:
1.
Using the music as a promotional good to get more attention in a crowded market.
2.
Offering customers what they want and plenty of options on how to get it.
3.
Building tremendous loyalty from happy, lifelong customers who are more willing to spend money on secondary products (merchandise, concerts, access.)
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Revenue Streams
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We must also change the way others view intellectual property: Steal our music!
But also: remix
it, sample
it, but most importantly, share
it with others!
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Promoting nightclubs to further brand awareness and build clientele
Amplified Promotions
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Amplified 3.0
Open an official nightclub
Goal:
Co-brand the club with our music
Have infrequent (ie. monthly) events Upsell
merch
to patrons
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Our fiscal year (Mar 07 –
Mar 08) saw $22,000
in gross revenues from
promoting 72 events
We seek a
$500,000
cash infusion today!
With this capital, we will see $1.2 million in sales in the next 18 months and over
$52 million
by year five!
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Team Amplified
Steven Apodaca
Kimberly Wachel
Weston Ludeke
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Anarchy : Order :: Bureaucracy : Chaos
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Contributors:
Chris Anderson Guy Kawasaki
Kevin Kelly Dave Kusek Larry Lessig
Gerd Leonhard
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This presentation is published under Creative Commons
Feel free to:
Share — to copy, distribute, transmit the work
Remix — to adapt the work
2008 Amplified Records & Promotions, LLC
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Thank You For Listening!
Presentation Content and Slides by:
Weston Ludeke
weston@
amplifiedrecords.net slideshare.net/mramplified