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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


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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



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Key Trends

Media 1.0: 1950-2000

  • Production:closed

  • Distribution:controlled

  • Marketing:mass

  • Consumer Choice:limited

  • Business Model: buy


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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


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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


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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.


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Media 1.0 Distribution1950-2000

Consumer

Supplier

Distributor

Retail

Musician Artists Bands

Studios

Record

Labels

CDs, Albums Stereos

Stores


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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


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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


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MODEL

DRIVERS

TECHNOLOGY

PRODUCTION

DISTRIBUTION

LIFESTYLE

ECONOMICS

© Les Ottolenghi 2005


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What INTENT Does…Distribution Platform for Digital Media:

  • 1.1 Million Files a Day

  • 3.4 Million files contracted

  • Media 2.0 Economics



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INTENT P2P Search ResultsAdvertiser is tied closely to artist in search results.


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Search Saturation Ability to “saturate” the search listings…



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Visibility in Social NetworksUsers spread file via embed codes for top MySpace search ranking.


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Pass-a-long DistributionContent owners gain the advantage of C2C commerce





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Animated Paths

Business Rules & Economic Models


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MODEL

DRIVERS

TECHNOLOGY

  • PRODUCTION

  • DISTRIBUTION

  • LIFESTYLE

  • ECONOMICS

23


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Media 2.0

The Future of Distribution

Intent MediaWorks, Inc.

Atlanta, New York


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