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P2P Summit The Future of Distribution. Intent MediaWorks, Inc. Atlanta, New York. Background. Glenn Martin. Intent MediaWorks. 900k Downloads per Day Represent 3.4 Million Files 90% Music 8% Video 2% Other
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P2P Summit The Future of Distribution Intent MediaWorks, Inc. Atlanta, New York
Background Glenn Martin Intent MediaWorks 900k Downloads per Day Represent 3.4 Million Files 90% Music 8% Video 2% Other Voted Innovators’ of the Year by Distributed Computing Industry Association: 2006 Recognized by The White House, Supreme Court, U.S. Senate, RIAA & MPAA • Recognized in technology • Search Engines for Orbitz, Travelocity, Expedia, etc. (2000-2003) • Helped start first Internet site to earn over $100Million • INTENT is 3rd Start-Up
Key Trends Media 1.0: 1950-2000 • Production:closed • Distribution:controlled • Marketing:mass • Consumer Choice:limited • Business Model: buy
Trends Media 2.0 Distribution Trends • P2P traffic represents over 68%of INTERNET traffic • 12.7 million simultaneous users on P2P • 60 million unique P2P users (IP addresses) per month in U.S.; 320 million worldwide • 35% of PC’s have a P2P application installed; new MS Vista has P2P built in
Critical Trends Internet Consumer • Mass Digital Distribution • iTunes, YouTube, MySpace, CBS • Pando, Azureus, Qtrax, • Amazon, Walmart • eMusic, The Orchard • Internet has emerged as a Discovery Channel – not just delivery • Ex. Gnarls Barkley • Ex. The GMan • Massive Investment in Digital Distribution • $50 Billion in 2007 so far • Boom in Media Centric Electronics • Up 70% from 2006, $500 Billion • DRM Free Music • EMI, IODA, DRA, Creative Commons
Consumers: Digital Lifestyle Broadband users spend an hour and 40 minutes (48% of their spare time) online in a typical weekday, and more than half of that is spent accessing activities related to entertainment and communication.
Media 1.0 Distribution1950-2000 Consumer Supplier Distributor Retail Musician Artists Bands Studios Record Labels CDs, Albums Stereos Stores
Media 2.0 Distribution2000- Present Consumer Supplier Distributor Retail Musician Artists Bands Studios/ Record Labels CDs, Albums Stereos Stores INTERNET Distribution C2C eCommerce Mass Distribution + Micro Marketing Music 2.0 Distribution
Economics Media 2.0 Media 1.0 Media 2.0 Eager for Distribution Believe in Digital “Snowballs” vs. Blockbuster economics Endorse “Superdistribution” & Web 2.0 empowerment tools Ad Support Ecommerce Lifestyle Media Bundled Licensing New Subscription Models Believe in multi-channel digital distribution through a management system • Old Economics • Paid downloads only • Publishers rights legacy • Licensing not based on performance • Difficult to “sell” new economic models • Deride & prosecute Web 2.0 empowerment • Mismatched with market demands • Physical distribution & channel conflict • Worried about “cannibalization” • Believe “they can do it all” • Self-distribute in fragmented channel easily
MODEL DRIVERS TECHNOLOGY PRODUCTION DISTRIBUTION LIFESTYLE ECONOMICS © Les Ottolenghi 2005
What INTENT Does…Distribution Platform for Digital Media: • 1.1 Million Files a Day • 3.4 Million files contracted • Media 2.0 Economics
INTENT P2P Search ResultsAdvertiser is tied closely to artist in search results.
Search Saturation Ability to “saturate” the search listings…
Visibility in Social NetworksUsers spread file via embed codes for top MySpace search ranking.
Pass-a-long DistributionContent owners gain the advantage of C2C commerce
Animated Paths Business Rules & Economic Models
MODEL DRIVERS TECHNOLOGY • PRODUCTION • DISTRIBUTION • LIFESTYLE • ECONOMICS 23
Media 2.0 The Future of Distribution Intent MediaWorks, Inc. Atlanta, New York