music distribution: technology and the value of art in society

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    Network Computing Laboratory

    Music Distribution: Technology

    and the Value of Art in Society

    Sungwon Peter Choe

    KAIST Network Computing Lab

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    Contents

    IntroductionThe Relationship Between Technology and Art

    Historical Roles of Music and Musicians

    The 20th Century

    Technology and MusicRise of the Music Industry

    The 21st Century

    Disruptive Technologies

    Current stateFuture possibilities

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    Technology = Art

    Ancient Greek Romanization Meaning

    Techni Art

    Art and technology differentiated only by time

    E.g. printing press => novel

    Or context

    E.g. fireworks => gunsInstruments of

    Destruction Creation

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    Historical roles of music and musicians

    Traditional Folk MusicMusic part of life

    social, communal, religious activities

    Most learned to sing from childhood

    Little or no separation between performers and audience

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    Current roles of music and musicians

    MusicProduct

    Complex legal restrictions (copyright, licenses)

    Music owned by corporations, not musicians

    MusiciansProfession

    Distinction between performers and fans

    Small number of commercial superstars

    Large number of poor artists

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    The 20th Century: Technology and Music

    Cultural globalizationEuropean colonization and American Slavery

    Fusion of African rhythms & European harmony

    Blues, Jazz, Rock, all popular music

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    The 20th Century: Technology and Music

    New technology for new musicElectric Instruments (Electric guitar, keyboard) and Equipment

    Big Band, Rock, Jazz

    Recording technology

    Collage music: Musique Concrte, Dub, Electronica, Hip-Hop..

    Problems with copyright

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    The 20th Century: Technology and Music

    CapitalismArt given monetary value

    Restrictions on music (intellectual property)

    Copyright

    Licensing

    Recording Technology

    Physical mediums (record, tape, CD)

    Allowed for global distribution

    Music no longer local/communal

    Allowed for packaging and sellingof music

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    1970s: The Good Old Days

    Long, long ago (the 1970s)

    In a country (USA) not so far away

    There were many small record companiesOwned by people who loved music

    Then the CD was released

    The music industry became profitable

    Imperial Corporations bought up all the record companies

    Source: PBS Frontlines The Way The Music Died

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    The Reign of the Music Industry

    Four corporations control

    82% of the globalrecording

    industry market

    Result

    CEOs out of touch with music

    Music is manufacturedproduct is not art!

    Music choice is limited

    Music profits go to the

    corporations

    not to the musicians!

    Source: wikipedia

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    The Music Industry and Musicians

    In 2002, if a band sold

    500,000 albums in the US:

    Total gross of ~$8.5 million

    Band gets: $161,909

    Divided among 4 members =

    $40,477.25 eachThats a best case scenario

    of a 15% royalty

    Source: New York Daily News

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    The Music Industry and Musicians

    Oh by the way, in 2002

    30,000 albums were released

    128 went Gold (i.e. 500,000+

    albums sold)

    Yep, thats 0.43%!

    What about the 99.57% ofother musicians who released

    albums?

    Source: New York Daily News

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    The State of Music in Society Today

    Shaped by 20th Century TechnologyCapitalismMonetary value on everything

    Recording Technology

    Distribution by sellable physical unit

    Result: Controlled by Corporate Interests

    Contracts, Copyrights, Licensing

    Limited choice

    Manufactured music

    Genre mining (e.g. grunge)

    Fans, even musicians have little control

    This is how society values music??

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    The 21st Century: Technology and Music

    The Internet = Disruptive technologyMusic PiratingThreatens the music industrys

    Distribution model

    Business model

    Changes fans relationship to music

    Free

    More and more varied music available

    Pirating Communities

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    The 21st Century: Technology and Music

    Professional Recording and Other Music Software

    Allows musicians greater independence from labels

    Blurs the line between musicians and fans

    E.g. Mash-ups

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    The Music Industry and the Internet

    The Music Industry

    Physical sellable unit (record, CD, etc.)

    The Internet & Digitized Music

    Infinitely reproducible and shareable information (mp3 file)

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    The Music Industry and the Internet

    Kbler-Ross Five Stages of Grief

    Denial (late 90s)

    Pirating only on campuses

    Depression (early 00s)

    Pirating depressing sales

    Anger (early 00s)

    Suing companies (Kazaa, Grokster, etc.)

    Suing fans

    Bargaining (present)

    Selling individual files or monthly subscriptions (iTunes, etc.)Selling ringtones, etc.

    (Acceptance)

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    The Music Industry Online

    99 cents per song in the US

    (cheaper in Korea- non-DRM track W700 at Soribada)

    99 cents x 12 songs = $11.88

    Hey thats about the price of a CD

    Oh, waitNo manufacturing & packaging costs

    No distribution costs

    Wheres that extra profitgoing?

    Savings for the user?

    Royalties to the musician?

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    The Music Industry Online

    But Napster offers unlimited downloads for

    $14.95/month!

    So?

    They offer no added value

    There is no incentive not to continue pirating musicLacks imagination

    No exploitation of new technologies

    Same paradigms, just online

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    Future Possibilities

    20th Century

    Our values shaped by the structures of technology

    21st Century

    Can our values shape technology?

    How will we value art?

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    Possibilities: Free Music

    Free Music

    Inspired by Free Software movement

    Targets restrictive music copyrights and licensing

    Not necessarily free of cost

    Free Music can be freely copied, distributed and modified

    Values

    Information should be free

    Creativity is inspired by those before and can inspire those that come

    after

    But not a model

    http://www.ram.org/ramblings/philosophy/fmp.html
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    Possibilities: Open Music Model

    Proposed by Shuman Ghosemajumder (MIT)

    $10/month all-you-can-eat price point

    Five requirements for a viable commercial P2P network:

    Open File Sharing: users must be free to share files on their hard drives

    with each other.

    Open File Formats: content must be distributed in MP3 and otherformats with NO digital rights management protection.

    Open Membership: content owners must able to freely register to

    receive compensation.

    Open Payment: users must be able to access the system using either

    credit cards or access cards purchasable anonymously in cash from retailstores.

    Open Competition: there must be multiple such systems which can tie

    into each others file sharing databases. It must not be a monopoly

    through legal design.

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    Possibilities: Open Music Model

    Open Music Model weaknesses

    Like iTunes with open standards

    No added value

    No non-philanthropic incentive not to pirate

    Doesnt exploit new technologies

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    Towards a new music distribution/businessmodel

    Values

    Music is art not just product

    Music belongs to all people

    Goals

    Musicians should be given fair compensationMusic should be freely shareable

    Music quality should determine its success

    Make money

    (Capitalism still rules, what ya gonna do)

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    The Anymusic Platform the NCLab approach

    Sell added servicenot music

    You can pirate music for free anyway

    What service?

    Ubiquity

    Access to any music from anywhereSocial Networks

    Music profiles built from users statistics (like last.fm)

    Music discovery and recommendation through the network

    Ubiquitous Services & Social Networking

    Find clubs, stores that play music you like

    Have stores, clubs play music based on customers profiles

    (Charge for business subscriptions)

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    In the park near HongDae

    sungwon

    HongDae, Seoul

    I wonder whos nearby

    you friends music neighbors

    younga

    HongDae, Seoul

    Spiral Architect - InsectsMusic neighbor? Lets see

    what shes listening toWow, she likes a lot of the

    same music I do Butwhos Spiral Architect?

    Ill check them out

    retrieving songHey, this song is great! Im

    gonna message hersungwon: spiral architect is awesome!

    younga: yeah, right?

    younga: oh, youre sitting just overthere? why dont you come hereand talk to me?

    sungwon: ok! ^^

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    Anymusic - Musicians Perspective

    Upload their own music to share

    Automatically promoted

    Social networks

    Genre playlists, etc.

    Receive compensation proportional to popularityFrom user statistics

    Independence from labels

    (Cheap professional recording software)

    Anymusic for promotion and distributionFree to own copyright/not to copyright at all

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    Anymusic The Money

    Sell information and service, not product

    Limitless growth!

    Data is the real source of revenue

    Users music listening habits

    Users location data

    Aggregates and correlations of the above

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    Anymusic in Businesses (bars, stores,restaurants)

    SoulJazz

    Fusion

    Classic

    Rock

    Monthly Business

    subscription

    User aggregate-

    generated playlists

    In this bar are

    Anymusic users wholike

    Soul

    Jazz Fusion

    Classic Rock

    The bar can then(automatically) play

    a mix of such music

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    Anymusic in Businesses (bars, stores,restaurants)

    SoulJazz

    Fusion

    Classic

    Rock

    Genre/Mood

    playlists

    User requests (via

    personal devices)

    User bookmarking

    user hears a song shelikes

    checks her device to

    see what it is

    marks it as a favorite

    Store music profiles

    searchable by users

    w/ description

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    The Future

    Almost anything possible

    What values do we keep/create?

    How do we use the technology available to us?

    Technology

    Values

    Environment

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    Extra Slides

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    Historical roles of music and musicians

    Western Art (Classical) Music

    Highly-trained musician class

    Musicians supported by patrons or churches

    Audience often separate from performers/composers

    Audience mostly wealthy upper classes

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    Possibilities: FairShare

    Proposed by Ian Clarke (Freenet)

    Patronage system for copyright-less world

    Patrons invest in artist

    45% goes to artist

    45% goes to previous investors

    10% goes to system maintainers

    Not a complete model

    Discovery?

    Distribution?

    Doesnt exploit new technologies

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    Related Businesses: Last.fm

    Web Service/Social

    Network

    User profile of:

    Most listened to artists

    This week

    Overall

    Etc.

    Provides plugins for music

    players

    Sends every song to

    central server which

    updates user profile

    Last.fm Software

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    Goals

    Show how the relationship between technology and

    music changes not only the music itself, but also

    how society listens to and values music

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    Current Distribution Methods

    Method Cost Benefit To User

    Physical Media (CD) $12 CD artwork, liner notes,

    bonus material (video)

    MP3 (pay per song) 99 cents/ song Convenient (if no DRM)

    MP3 (subscription) $15 / month Convenient (if no DRM),

    Unlimited downloads

    Mobile Phone direct

    download

    $1.99 / song (V Cast) Very Convenient,

    ubiquitous

    MP3 (pirated) Free Unlimited downloads,

    Convenient, No DRM,

    Free