Presents…

Unto Us The Machine Is Born

By Weston Ludeke

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

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.

There is only one time when it is born. You and I are alive at this moment.

“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...

“We Make The Music Come Alive”

The Machine

begets The Network Economy

This presentation will focus on three things primarily effected by this shift:

Music 2.0

Web 2.0

Life 2.0

Our goal is to help our clients navigate through the chaotic waters of The Network Economy

…and harness the collective wisdom of The Swarm

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.

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.

Traditional Distribution Network Distribution

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 $$?

Scarcity Abundance

Scarcity Abundance

mScarcity Abundance

Scarcity Abundance

Scarcity

Abundance

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

The Enemy

“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

•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

The Right Idea:

But Mr. Peabody, I’m still confused!

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.

Record label fronts ‘advance’Label retains masters/copyrights

Touring/Merch is separateArtist is lucky to net 15% after label recoups

Traditional Record Industry Model:

The music is freeEndorsements/sponsorships

Handle concert bookings & merchandiseArtist retains creative control, mastersArtist keeps 90% of all gross revenues!

360° Business Model

New Model

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.

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.)

Revenue Streams

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!

Promoting nightclubs to further brand awareness and build clientele

Amplified Promotions

Amplified 3.0

Open an official nightclub

Goal:

Co-brand the club with our music

Have infrequent (ie. monthly) events Upsell

merch

to patrons

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!

Team Amplified

Steven Apodaca

Kimberly Wachel

Weston Ludeke

Anarchy : Order :: Bureaucracy : Chaos

Contributors:

Chris Anderson Guy Kawasaki

Kevin Kelly Dave Kusek Larry Lessig

Gerd Leonhard

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

Thank You For Listening!

Presentation Content and Slides by:

Weston Ludeke

weston@

amplifiedrecords.net slideshare.net/mramplified