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Genero distribution model

Genero project, business perspective

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A presentation of Genero with focus on the value proposition. Not self explanatory, as always, contact me if you are interrested

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Page 1: Genero project, business perspective

Genero distribution model

Page 2: Genero project, business perspective

The big picture

Members of society wants

• …while maintaining Free speech

• …while maintaining Privacy

• …while maintaining Free communication

• Quality is subjective from the user perspective. Production cost does not equate to value.

In order to gain access to knowledge and culture, it must first be produced, then made available to the user

To have access to as much knowledge and culture as possible

Page 3: Genero project, business perspective

Needs analysis

Sender

• Distribution– From only family to the whole world

• Recognition– From anonymous to pseudonym to

attention hogger

• Content control– From copyright to copyleft

• Feedback– From concerts to fanclubs

• Artistic freedom– Free speech

• Monetary compensation– From none to lots

Reciever

• Embodiment

– From whatever to roadie

• Patronage

– From none to everything

• Influence

– Incluence creators, reward, feedback etc

• Share with peers

– Part of identity

• Use and reuse content

– Create and modify, sample

These are just examples. FriBit is performing a complete needs analysis

Page 4: Genero project, business perspective

Conventional distribution model

Content owner

User

Distributor

Content ownerContent owner

User User

Page 5: Genero project, business perspective

Example: Warner

User

Content owner

MSN Music

User User

Warner store

Warner music

Content ownerContent owner

iTunes

Page 6: Genero project, business perspective

Example: Apple

Content owner

User

Content ownerContent owner

User User

iPod

iTunes

iPhone Apple TV

Page 7: Genero project, business perspective

Example: Nokia

Content owner

User

Content ownerContent owner

User User

N96

OVI

N95 N…

Page 8: Genero project, business perspective

Main problem with current distribution model

- Lack of competition

- Exclusivity

• Little competition in distribution

– Each distributor signs exclusive distribution agreements

– Even though content is available through many channels, each channel has signed an exclusive agreement

• Little competition in content

– Unsigned content owners dont have access to the same distribution channels

– Once signed, the distributor often has exclusive rights for content distribution

Page 9: Genero project, business perspective

Introducing Genero

• The Internet has had success because its distributed, open and non-exclusive. Genero will work similarly, being a distribution model rather than a distributor.

• Genero will create a solid, fundamentally correct and future-proof system that adresses the needs of the users and the creators

• Introduce competition in all links of the value chain

• Genero is currently being developed by Fribit (an NPO with the purpose of promoting Free Culture), with intent to transfer development to the libraries when they are ready

Page 10: Genero project, business perspective

Guidelines for Genero

• No exclusive rights for anyone– Anyone can become a distributor or aggregator as long as they retain licence conditions

– Anyone can create derivative works as long as they maintain licence conditions

• No lawsuits– Genero will be managed by norm and community rather than lawyers

• Trust based– Enforcement of rules, attributions etc is based on trust systems. If the community

deems you to be a non-trusted fellow, your content or channel will be marked as such and avoided

• Content independent– Can be used for any kind of material that can be represented in a digital form. Examples

include movies, tv-series, books, music, pictures, software etc

• Location and technology independent– Can be used in any manner of ways in any kind of locations – All content will be

available to all distributors equally

• Entirely API based– All access to Genero registries are based on API’s. Creating entries, accessing entries,

downloading content etc will all be available through API’s

Page 11: Genero project, business perspective

Content ownerOwner of the content. Can be an individual or company

Aggregator

Facilitates access to Content registry

UserConsumes the content

DistributorDistributes content

Content registryPublic registry of Content

Genero model

Page 12: Genero project, business perspective

Content owner

User

Content ownerContent owner

User User

Aggregator

Distributor Distributor

Aggregator

High level overview

Registry

• User

– Consumes content

• Distributor

– Facilitates content access for the user

• Registry

– Stores content registry posts with all details

• Aggregator

– Facilitates the registration and monetization process towards content owner

• Content owner

– Has rights to content

Description of system participants and flows

Page 13: Genero project, business perspective

Writer

User

Public Library Registry

MusicianPainter

User User

Internet Archive

FreeArt.com MSN music store

Registration Co.

Example roles

Page 14: Genero project, business perspective

John Walsh

Peter: Reads the book for free on his PC

Public Library Registry

Walter: Buys the paperback

FreeBooks.com HardPop

Writers Guild

Eksempel of use

$ 5

$ 20free

John’s chosen licence sais digital copies are free, if you publish a paper book give me 5 bucks

Page 15: Genero project, business perspective

Genero licences

• Guiding principles– The purpose of the Genero licences is to remove any obstacles from distributing and

reusing content. All applications and agreements will be prepared for in the licencing. It will be recommended that the content owner accepts a mutable licence that can change as time passes. The intent is that Genero will be a lawyer-free zone.

• Genero Standard– The standard licence for Genero content. All monetization is based on the principle of

gift economy (donations), and the licence will dictate the distribution of donated funds. The licence has a powerful “Copyleft Share Alike" feature, saying all content can be reused by others without restrictions or prior agreements, but the derivative work must be Genero licenced. Commercial derivative works are required to register with Genero, and non-commercial are encouraged to be registered.

• Genero Commercial– Similar to Genero standard, only with an added condition of fixed pricing for content

distribution. Genero Commercial will try to predict any commercial use of any kind of content or technology, and allow the content owner to stipulate financial terms. Strong Share Alike is maintained

Page 16: Genero project, business perspective

Why Genero is better for creators and users

• Better value proposition to creators:

– Instant access to all distributors

– Decides financial terms oneself, low overhead and cost

– Access to material without having to ask for permission

– No hassle, signatures, handshakes or threat of lawsuits

– No meddling in the creative process from distributors

• Better value proposition to users:

– Greater choice amongst content

– Greater choice amongst distribution channels

– Distributors and creators compete in price and functionality

– Consumer rights maintained

Page 17: Genero project, business perspective

Why Genero is better for society

• Typical distribution models place themselves at the center. Like the internet, Genero has no center and will be allowed to develop freely

• Provides viable business models for free (as in speech) content, making for a huge registry of publically available content – like Open Source – that can be readily reused

• Not a threat to privacy, free speech, internet neutrality, medicine, innovation etc the same way conventional (permission) culture is

• Allows everyone simple access to both create using a cultural legacy, and any distribution mechanisms = democratizing both means of production and means of distribution

Page 18: Genero project, business perspective

Who wants to be a Genero distributor?

• Anyone with ambitions within content delivery

– Not in a dominating position (big 4) or has interests in maintaining status quo

– Ambitions within content aggregation or distribution

– Has assets they can leverage

– Creator relationships

– Customer relationships

– Billing

– Brand or technology

– Has a positive view on non-exclusive business models

• Not for profits

– Wikimedia, Libraries, FriBit, artist unions

Page 19: Genero project, business perspective

Links

• FriBit Main page:

www.fribit.no

• Needs analysis: http://www.fribit.no/prosjekter/behovsanalyse/

• Genero project

http://www.fribit.no/prosjekter/genero/

Page 20: Genero project, business perspective

Backup slides

• Process flows

Page 21: Genero project, business perspective

Aggregator

Distributor

Aggregator and Distributor authorization

Registry • Registry owner defines permissions for tracker access (IP ranges, tokens)

tracker

• Aggregator registers as a content aggregator. Preferably click-to-accept, could be a manual validation process

• Distributor registers as a content aggregator. Preferably click-to-accept, could be a manual validation process

Page 22: Genero project, business perspective

Aggregator

Distributor

File transfers between aggregator and distributor

Registry • Registry creates an index based on content in its registry and in federated registries

• Transfers index and deltas twice a day

• Transfers index and deltas twice a day. Index is just to alleviate searches towards registry

• Files are shared. Aggregator would be permanent seed

• Distributor downloads content based on manual selection and policy from index. Probably the torrent files is not stored, but fetched on request

Page 23: Genero project, business perspective

Aggregator

Content registration process

Registry

Content owner

Content type:Music album

Licence type: Genero Standard

Content type: Music album

Content category: flac

song01.flac.torrent

song02.flac.torrent

Content category: mp3 320kbps

song01.mp3.torrent

song02.mp3.torrent

Content category: Source

song01.midi.torrent

song02.midi.torrent

Content category: Misc

music.video.avi.torrent

cover.front.jpg.torrent

cover.back.jpg.torrent

storplakat.jpg.torrent

Registration entry:

Author: John GlennContent owner: SuperPublishContent category: MusicTags: reggae, jazz, fuzzpop

Monetization distribution:

Author- John Glenn: 70%

Aggregator- SuperPublish: 5%

Distributor: 10%

Registry: 3%

Sampled- Peter sellers: 5%

Sampled- Kent: 5%

Sampled- Stingy: 2%

Page 24: Genero project, business perspective

• The public registry approves registrars and distributors

– Can be any company, but must abide by the rules regarding copyright, payment etc

Registrar and Distributor signing

Content owner

User registry

Application

User

Distributor

Aggregator

Application

Content registry

Page 25: Genero project, business perspective

• Content is produced

– Music, movies, TV-series, photos, books, plays etc

– Initially intended for media content, but works equally well for games, applications and other intellectual property

• Licence decicions

– Content producer can make any kind of 3rd party agreement, including sale or revenue-sharing of licenses

Content production and licencing

Content owner

Aggregator

User registry

Application

User

Application

Distributor

Content registry

Page 26: Genero project, business perspective

• Content owner registers with the public registry

– Done through approved registrars, much like domain names

– Content owner provides a copy to the Content registrar of the highest quality available

Content registration

Content owner

Aggregator

User registry

Application

User

Application

Distributor

Content registry

Page 27: Genero project, business perspective

• Distributor accesses registry

– Finds new content in the content registry the distributor wishes to publish

• Retrieves a master copy

– can then create any new suitable version - from FLAC to MP3, from Blue-ray to DVD, DivX, mobile etc

Registrar to distributor publication

Content owner

User registry

Application

User

Distributor

Aggregator

Application

Content registry

Page 28: Genero project, business perspective

• The user purchases a right to create copies

– Can be a CD store, iTunes etc

– The user can decide either to purchase anonymously, or to register that he now owns the rights to that content

– Registration can be facilitated in a number of ways, eg. By registering a credit card with the distributor

Licence purchase

Content owner

Aggregator

User licence registry

Application

User

Application

Distributor

Content registry

Page 29: Genero project, business perspective

• Content is distributed

– The distributor checks the user registry to see what content that user has purchased

– Content can be distributed in a myriad of payment plans and distribution methods… Physical media, streaming, Pay-on demand, torrents, fixed price, bundles etc

Content distribution

Content owner

Aggregator

User registry

Application

User

Application

Distributor

Content registry

Page 30: Genero project, business perspective

• The distributor pays for the licence

– The Distributor checks licence for price, and pays the Aggregator according to licence. Aggregator manages payment allocation

– Can be any kind of payment plan determined by the chosen licence, from fixed price per unit to bulk discounts. Note that this is a fixed part of the licence agreements and is available to all distributors alike.

Content owner payment

User registry

Application

User

Application

Distributor

Content owner

Aggregator

Content registry

Page 31: Genero project, business perspective

Steam as an example

• Focus on the user experience

• Gives the user high degree of functionality and rights

• Stimulates 3rd party development on their products

• Is the best distributor of their own content, thus competing with piracy instead of fighting it

• Result: Very competitive against other distribution channels, including pirate channels

Page 32: Genero project, business perspective
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