Attention! Future Music models without ads

'Music is emotion.' Beware! Persuasion is everywhere! In this emotional state you are seduced to buy stuff! The ad-funded music business models are driving consumers crazy! Imagine you are in love with a beautiful girl. You would only think about this girl while listening to a great love song. But there are some other parties trying to get your attention. The artist is trying to sell his album to you, the brand which is supporting the artist is trying to create some goodwill, the platform is trying to upgrade your account to a premium service and if you go to MySpace you even get some great overlay advertisements while watching the music video.

Dave Kusek just blogged that we have to think of a different music model with respect to the artist-fan relationship. I am afraid the ad-funded business model doesn't fit this need. Too much parties trying to get your attention, a subject Gerd Leonhard blogged about today. Gerd writes it is all about participation, engagement and attention. I think Gerd is right, there will be much more advertisements around content the upcoming months and years. Why? Because the music industry isn't innovating! Technology changed the traditional value chain of the music business into a value network. A network where artists, consumers, record companies, music publishers and copyright societies are forced to work together to co-create a great customer experience. The music industry has just stopped the fight against technology and is now fighting with itself about margins. Still no focus on co-creation and innovation! If you would like to read about co-creation, "The future of competition" by C.K. Prahalad and Venkat Ramaswamy is a most read. Thanks for your attention! Let's start innovating!

8 feels like free music business models

Consumers are getting more and more confused. Free music is everywhere, but is it legal music? And, is it really free? Or are you paying your music in a different way than you did before? Or is a third party financing this music? I have identified 8 'music feels like free models' for you. Some models are still great innovations, other models are becoming more mainstream.

1. Advertising funded

Some music models are advertising supported. Examples of this businessmodel are Fabchannel, Spiral frog or We7. Advertsing income is used to cover the costs of music. Advertising can be served in various ways. Instream advertisements, bannering, buttons, pre-rolls or postrolls. The radio and television industry is using the advertising model for years. For the (digital) music industry this model is relatively new. 

2. Mobile music subscription model

Examples of this model are TDC in Denmark and Nokia's Comes With Music. Consumers are buying a handset with music included. The price of the handset includes the price of the music. When you download the music from a music store to the handset you don't have to pay. It feels like free. The innovative part of this model is the role of Nokia. Handset manufacturer Nokia is entering the music industry to sell more mobile phones and deliver more services to their end users.

3. Music tax

Media futurist Gerd Leonhard has written a lot about his 'music as water' music model. According to Leonhard 'music tax' should be paid to a governmental institution for the use of music. An independent party should distribute the collected money to the rightholders. A lot is said about this model. One thing is sure: this model can be a future solution, not a solution for 2008. The various governments and rightsholders are not ready yet to implement this model. ‘Tax’ is not innovative, a music tax is!

4. Levies

This 'music feels like free' model is slightly different from the 'tax' model. Levies could be collected based on Internet access, mp3 players and / or other devices. Levies are collected by public organizations instead of governmental institutions.

5. Brands

Bacardi is using 'music' for marketing purposes. Some artists have record deals with brands like Bacardi.   

6. Piracy

A lot of music is shared via p2p networks. This music is not licensed by copyright- and / or neighboring right holders.

7. Creative Commons

"Creative Commons provides free tools that let authors, scientists, artists, and educators easily mark their creative work with the freedoms they want it to carry. You can use CC to change your copyright terms from "All Rights Reserved" to "Some Rights Reserved."

Creators of musical works can use Creative Commons licenses to show the world if it is allowed to use or remix the musical work and distribute it. Traditionally, copyright societies are taking care of collecting and distributing royalties for the use of music. Creative commons isn’t collecting and distributing any money.

8. Promotions

Sometimes artists are giving away their music for free. To promote their music, to promote their gigs and to let the world know about their amazing music.