Abstract
Radical, Workable and Compelling
- Detailed rationale
- Proposition to key stakeholders
- Retail model & pricing
- Developer community and API
- New way to distribute web services
- Infrastructure requirements
Subject Area
This report describes a radical but workable solution to the key problem faced
by the recorded music industry which is how to distribute music content over
the internet in a way that ensures the industry is properly paid.
Report Content
The report begins by setting out what could be termed a ' general theory of
virtual music' Ten core concepts are outlined and their implications and
significance explained in detail.
The report then explains System-V in detail, first by clearly covering the
proposition to the three key stakeholders (the music industry, the technology
industry and consumers) and then by looking at topics such as pricing, the
retail model, usage rights and the user experience.
In the next section, the infrastructure needed to support System-V is
explained in detail. The four key system components are identified and
explained in detail: music files, software, developer community and
administration.
In particular, the developer community section of the report presents a
remarkable vision for how System-V would catalyse the development of a new
class of web services which would be distributed by users themselves using the
music files as the distribution vehicle.
Who Should Read this Report?
- The CEOs of the four major record labels;
- Executive-level decision makers working in the music and technology
industries;
- Those who have enquiring minds and are interested in whether there might
be a solution to the music industry' s problems after all.
Table of Contents
SYNOPSIS
- SUBJECT AREA
- REPORT CONTENT
- KEY BENEFITS
- WHO SHOULD READ THIS REPORT?
EXECUTIVE SUMMARY
INTRODUCTION
RETHINKING DIGITAL MUSIC: SYSTEM-V
- NEW RELATIONSHIP WITH TECHNOLOGY INDUSTRY
- COPIES SHOULD BE FREE
- UNCONTROLLED COPYING AND SHARING IS GOOD
- DRM IS BAD
- Irony of DRM and Music Copyright
- Observations
- DON' T SELL COPIES, SELL USAGE
- CREATE AND HARNESS A DEVELOPER PROGRAMME
- MP3S & FULL BACKWARDS COMPATIBILITY
- P2P FILE SHARING IS GOOD
- TECHNOLOGICAL INNOVATION IS GOOD
- COMPROMISES NEEDED
DETAILED DESCRIPTION
- PROPOSITION TO KEY STAKEHOLDERS
- Consumers
- Music is free to download
- Unlimited copying and sharing (no DRM)
- Downloaded music plays on any device
- Gain access to a wide range of third-party music services
- Music Industry
- Same industry revenues as the CD
- Dramatic expansion of the music retail market
- Derive direct benefit from technological innovation: virtuous circle
- Obtain rich data on user listening behaviour and retail performance
- Technology Industry
- New, open developer programme
- Conditional permission to use music content for commercial purposes
- Free to use music for commercial purposes with no revenue share
- PRICING
- Wholesale Pricing
- Retail Pricing
- Preview Option
- RETAIL MODEL
- Different Types of Retailer
- Type 1 (New Accounts)
- Type 2 (Top Ups and Gift Vouchers)
- Example Retail Scenario: Online
- No Need for Credit Checking: Payment by Charge Card
- Example Retail Scenario: Bricks and Mortar
- New Accounts
- Top Ups
- Gift Vouchers
- Post-sale Activation: New Accounts
- Retail Situation
- Online Situation
- Device Activation
- Other Retail Scenarios
- IMPORT MUSIC
- Initial Import Process
- Unrecognised Music
- Adding New Music
- USAGE RIGHTS
- Access to files and sharing
- One Super-Domain
- ACCESS RESTRICTIONS: OUT-OF-CREDIT SCENARIO
INFRASTRUCTURE
- SYSTEM COMPONENTS
- MUSIC FILES
- File Format
- Usage Reporting
- SOFTWARE
- Device Software Component 1: Playback Enabler
- Device Software Component 2: Service Enabler
- Device Software Component 3: Usage Reporting
- Service Provider Software
- DEVELOPER COMMUNITY
- Consumer Services
- Example 1: Music Broadcast
- Example 2: Music Search
- Example 3: Ad-supported Music Services
- Example 4: Music Back-up
- Example 5: Remote Access
- Example 6: Home Service
- Example 7: Widgets
- Example 7: Live Music
- Example 8: Music Requests
- B2B Services
- Example 1: Usage Reporting
- Example 2: Platform Services
- Example 3: New Types of Music Chart
- Example 4: Research Services
- New Distribution Mode & Web Services
- Example Service Scenario
- Important Observations
- Background Handshaking
- Targeted Advertisements
- Music Service Payment
- User Service Library (USL)
- Set-up Preferences
- New form of Distribution
- Media player takes on the characteristics of a web browser
- New mode of distribution for web services
- Social graph
- Extensible to other media formats
- ADMINISTRATION: ADMINCO
- Management Function
- Database Function
- Distribution Function
ABUSE SCENARIOS
- UNAUTHORISED COPIES
- Identification
- Analyse Uploaded Files: Use Meta Data
- Analyse Uploaded Files: Use Content Filtering Technology
- Corrective Action
- Transparency
- COVER VERSIONS
- UNAUTHORISED RECORDINGS OF LIVE EVENTS
- HACKERS
- CD PLAYBACK
- SHARING ACCOUNTS
- PIRACY
- Individual Users
- Unauthorised File-sharing Services
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