Here’s the Organic Development summary of the first keynote speech of LikeMinds 2010, day 2. Chris Carey (of PRS Music) gave a fascinating talk on data, business models and piracy in the music industry.-The better we understand the makeup of a complex industry, the better it will perform.
-Data matters because it dispels myth.
-Consumer spend on recorded music in 2009: £1.9 billion.
-40% of revenue is in live music.
-The value of a live performance used to be to sell recordings.
-Gains from recorded music have declined over time.
-In 2008, live music out-earned recorded music.
-The long tail theory is all about demand spreading out: in an online world, you’ll have less attention on the ‘hits’ because people can find what they really want.
-iTunes and other services use curation and aggregation to filter bands who want to get their music on certain platforms.
-What does demand look like in a world where we’re free to choose the media we want? It’s still ‘hit heavy’.
-What’s more, platforms that use curation encourage even more ‘hit heavy’ behaviour.
-Better information = better decisions.
-What happens in legal sales data is mirrored in piracy data.
What we think: Chris raised some very interesting issues. His opening point, about improving the performance of complex industries by increasing understanding, was particularly relevant to Organic Development's CAN-do philosophy (which is based on the concept of Complex Adaptive Networks). Another important point was the fact that effective curation (on platforms such as iTunes) can heavily influence the behaviour of consumers.
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