 Many thanks to the director of the Federal Office of Culture and to Kunstmuseum Basel, our two primary partners. I didn't realise that the director of the Federal Office of Culture had studied mathematics, so I hope he notices in our logo is a set of Bernoulli spirals, Bernoulli being one of Basel's many great mathematicians, which guide in our artwork there. Okay, as I said, I'm not going to dwell on introductions, they're all in your handbook. It's a great, we're flipping first and last because of technical issues. So first up will be Gerd Leonard from Basel. He's a very famous guy outside of Switzerland in digital media, has made a name for himself many times with his repeated prescient predictions about the role and direction of digital media. It's a good thing that he's not charging us his corporate rates to be here because he would be here otherwise. But please welcome Gerd Leonard. Good morning. Very happy to be here. I'm now a native Basler. I've just received my Swiss passport. So if I speak about Switzerland, I have now the authority to make fun of Switzerland because I'm actually a native. If you are on Twitter, I'm G. Leonard on Twitter. Let's see it right here. And my German tweets are there. Many of you may wonder what in the world the future is. There's really no good German word. There's a good French word. I think about what's coming in the future three to five years from now. I don't do predictions. I deal with four sides. Okay, four sides is what everybody has. There's a Chinese saying that says, if you want to know about the future, ask your children. So that's really what it's all about. I try to remain a child in that way and speak to my clients about the future. We work with hundreds of companies. My company is called The Future's Agency, based in beautiful Palestine. And this was some time ago. I actually have something to do with culture and creativity. I'm not just a speaker, but thankfully the world has been relieved of my activities as a musician. It's great to have this event in Switzerland, as you can see Swiss people are very inventive. So it's really good to have that here and kick things off. First of all, I want to talk about the network society. You know what we have today is really absolutely mind-boggling. When I started on the Internet 1995, our first project was together with the Internet Underground Music Archive in Santa Cruz, California. And we thought that five years later, Napster, right, everybody's going to get music on the Internet, wasn't sure it was too early. And all of us went bankrupt in 2002 because of this. It's a great experience to try to impact. But now we have a network society is real. We have mobile devices. The whole world is connected. We're going to have five billion people connected to the Internet. There's a huge amount of cultural change coming of this. Not all of it is good, of course. Like the nuclear power, which by and large is not good, can be used for good purposes, but also for bad purposes. But we have to remember one thing. Today in this society, network society, we're no longer in these silence. We're no longer about art, society, political business, IT. We're actually putting this together. Digital culture really knows no silence. And if you're in the business community, you have to deal with art. If you're an artist, an artist, you have to deal with business and technology. And many solutions to cultural business affairs and issues are going to be in the ICT technology business, with telecoms and ICTs. So I don't know if it actually exists. It's called a sheep pig. But I think we have a new grid of culture that's emerging. I'm very excited about this. Because I think this culture is going to be changing a lot of things. And it's, you know, I call this a network culture. Here you see in Israel a fun park where you go down the slide and you can post your image on Facebook using a wristband. You can go down the slide and it will post your picture on Facebook. Here you can share your songs on Facebook. You can listen to Spotify. You can comment anywhere. You can publish your running data. This is the Nike shoe. I don't know if any of you are doing this. But if you're working out, you can publish the data. Millions of people are doing this. You can raise money on Kickstarter. There's been 35,000 projects funded on Kickstarter, including Amanda Palmer for, as you can see, for $600,000 almost. You can print 3D images and print your own shoes from like a copy machine on 3D. And there's lots of confusion. And digital culture and network culture is not a quiet place, right? Twitter makes me like people I've never met. And Facebook makes me hate people I know. This is really quite confusing. So, I mean, this is the kind of culture we live in today. But I think the very good thing is that for the creative industries, for creative people, and for the culture, the so-called cultural industry is charming, but we're jumping down to a larger fishbowl. This is a whole different world because there's a larger audience. There's a way to connect with the investor. In Facebook, the investor, find the purpose, calls this so-called social, local, mobile. This is the world we live in. If you're here today, you can check in using a check-in app like Foursquare or Facebook and find out who is here. You can connect with people. Very soon, you can go to the football game, find each other in the audience, send messages, and change your literacy, and it's mind-boggling. But here's the thing to a swing culture. Just talk to the newspapers about what that means. Screen culture, I mean, the newspaper is now just another screen. I mean, the printed newspaper is a screen, basically a printed screen. So that makes a huge difference for business models. There's a great research study from Google showing that when moving from mobile and multi-screen world, that is basically the majority of our media interactions are through screens. Which doesn't mean newspapers will die, but just being on the screen is different than owning the screen. And that's a whole different business model. Many times we'll turn to the closest, swing TV, no longer commands our sole attention. Actually, people are watching TV, but you know at the same time they're on their smartphones. I'm sure you do this on the iPad while you watch your television. The last Swiss music content or the Swiss music something, 100,000 people twittering all the time. They're not watching TV in the same sense that I did 40 years ago. Yeah, I'm clearly out of my vanity, calls this visuality. When moving from a reality from speaking to writing to images. This is fantastic news if you're a creator. Because clearly, a machine can't make a good image in the same way that a human would. I mean, the creativity behind making visual things is human. It can't be done with machines, but it's not the same thing. And we have this complete convergence of internet and television. If you're the TV producer, business you're saving grace. Unlike the newspapers, it's going to be a lot easier for television people. Again, the Internet can't find fully-connected devices. I do work in Indonesia. Indonesian government is now putting online 16,470 islands on white high-speed internet on the mobile phone. And these people never had radio before, or television. They didn't have any video. They were singing, and now they can watch YouTube on a white high-speed. I imagine what that will do to people's culture, religion, industry, becoming a connected device. The television knows who you are. Imagine the television actually knows who you are. What do you like? What do you look like? There's a new television coming out by Intel that scans your face while you're watching, and figures out if you're old or young or happy or sad, and changes the commercial. Imagine this, man. Are you scared of thought? But they're serious about this. I mean, I'm not talking, they're quite serious about this. So now we have what's called natural user interfaces, right? Kids love the iPad. I mean, you have tried this with your kids, I'm sure. But, you know, it's completely natural, getting excited, so I think I'm going to keep it there, I promise. So, kids do this, but now what happens if kids can't do this? You see in this video, here's a kid who has a magazine. And this kid is trying to zoom the magazine. You know what this means in reality is that in this world, if you can't be Zoomed, you don't exist. You're not of interest. And here's the next television from Samsung. Voice control of the television. Vision and touching the screen from afar, right? Motion control. I mean, it sounds like science fiction, but it's coming, right? Imagine what happens when we can touch the television and we can pull out the internet in a month, in a few days. One of my favorite movies, of course. So now we have new interfaces. And some people, this is a scary thought, right? Some people calling this my second brain, right? The iPhone, especially the one that came out yesterday, right? If you use it, it becomes your external brain. I use an app called WikiAll. You can download Wikipedia. And every time you have an argument in the bar about how many people live in North Korea or whatever, you just look it up, right? It's an external brain. Think about a Wikipedia implant in your head. This is coming. I'm not talking. You can have an implant for, you know, hearing. You can have an Alzheimer's implant. Why not have a Wikipedia implant? I mean, we have breast implants, but I'll have a Wikipedia implant. So now interfaces, right? Basically, Mirchil Kaku. The Internet India Contact Lenses. Your last is what a dead pod really are. You think that there's biographies in your son. This is kind of interesting, right? But I mean, I could care less. I have to be honest. But this is going to change our behavior. Google Glasses and all this way, automatic translation will be with us in two years. I was in the Google Labs the other day. I spoke in Germany and came out in Chinese on the other side. In real time. I mean, automatic translation is here. What will this do to Switzerland? And will we still learn free languages? This is making it difficult to say. So the next challenge that we have to face in the cultural industries and being creators and then culture adults, augmented reality, human machine interfaces, artificial intelligence, all sounds like a corridor of mobile, which I would highly recommend, right? But it's here, right? Singularity. The idea of having improved humans. Check out this video about how it will be dating in the future. Let's give this some more sound. Great. Thank you. The guy has an iris implant. To access the internet while he's talking. What do you mean? Sorry? What's the difference from sports data in the normal language? I guess sports data for people won't be even going to the case of others. Actually, is it very easy? Very easy. We didn't say it was broke up. So is that what is going to be in the future? I think with technology and with creativity we have to redefine what human actually means. What does it mean to be human? Does it mean that when we are walking to the repository of ad plugins? I mean, this is a scary thought. But anyway, storytelling is changing. And many of us are storytelling, right? It's now called chance media storytelling using all kinds of tools to tell stories. And this is good news for creative people because all of a sudden we have all your video installations and we have data feeds, real-time things and all these things. Here's a clip from Bayer 71 from the Canadian film board. A fully interactive film. We'll see some of that stuff today. Where you can see the journey of a bear. Now, this is a map I found just two nights ago when I was looking for a different world view. And I found this. This is a Kiwi, a New Zealand map of the world. And it turns around. So that Australia and the Kiwi lands is in the middle of that. And I think what we're going to see in the future is that seeing things in new ways is not going to be very important. Getting rid of our own assumptions. There's no better example than to talk about the music business. The music business had the assumption for a long time that we have to control that people make copies of songs. That's the most important thing because we want to sell cities and downloads. Reality is the music industry has shrunk 74% in 10 years based on this assumption. And they still haven't changed. We'll talk about that later. Martin McLuhan, 1971, talked about the global village. This is what he said. I'm concerned with everybody else's business. And much involved in everybody else's life is the sort of anti-language column with large. And it does not stand in harmony with the choir but it does mean you get involved. It doesn't necessarily need harmony and peace and quiet. We should take that literally here. We love harmony and peace and quiet and that's good. It's a beautiful poetry for harmony and peace and quiet. But this conversation about digital culture is not about keeping it quiet. We have to deal with the conversation that is rather complex. The crowd in the club is enacting what we do in the cloud with the crowd. That is a huge thing for the future and it's finally giving us that global village. Cloud computing, all of you guys know what that is. But really what's happening is here that my music, my films, my TV shows, my health records, my money, my education is moving into the cloud. There's an estimate that over two and a half million lives could be saved if the health records were in the cloud. So that the doctor in Costa Rica where you had a car crash could pull up your patient information. This is going to happen cloud computing but the global village is not really about technology. It's about what we do with all these things. How do we react? How do we change? How do we change what we do and how we do it? And I would submit to you that in terms of what's happening here is that trust is the new currency. Trust is the only value that remains when it's about trust in an artist or trust in a business or trust in a company. And you see this trust economy unfolding I think pretty much across the board. In a networked society like this, a society that's very fast-moving and interconnected, all of you are linked in. So what do you do before you go to a meeting? You look out the curtains, you go to meet only there. Everybody knows that now. You look at people up on Facebook to see what the latest policy was. So we're now heavily interconnected and really what matters here is curation. Because there's so much happening. This is the future rule of broadcasters of radio people of producer's side. They're not becoming superfluous, they're becoming curators. And by the way, all of you want to download those just Google, GERD, free PDF and GERD and then we'll find it. So we're now moving in cultural terms, moving from a society of egos, which are only bad, a society of Disney's, Universal Music's, Goldman Sachs, a society based on empires to a society of biosphere. And if you're looking what's happening, the most successful companies are interconnected companies. Google, eBay, Amazon, YouTube, Skype, Twitter, and then saying Facebook. The all-coming companies that are really independent, Google couldn't exist without our collaboration. Facebook would be dead. We are the content of Facebook. If we don't participate, Facebook is dead. The difference between MTV and YouTube, so MTV was a corporate empire running the show in YouTube's network. There's nobody programming YouTube. We program YouTube. So now we're heading into the era of what I call a biosphere and a ecosphere. So we're going from the egosphere, you know, from large companies, from large corporations, to biosphere. We're going from YouTube to Spotify into electric vehicles. I mean, the regular carbon economy is an empire. But the future cannot be an empire because we have reached the top of that ceiling to where we can go much further. I think what we're seeing in culture, especially in technology, is that control is moving to the notes. You know, the individual parts are working from the general parts to the network. But in a good moment, in YouTube, you're over here because you have a record deal with the universal music. Would you like that to be a public license that you have over here? Hopefully not. No one moves away from you. I mean, we're living in a society that is to be like this. This is not just a culture industry, but not like this. And in measure, of course, the other doesn't go away. Clearly, we're going to have corporations. Clearly. It's a fundamental change of direction, however. And what are we going to do about this? Are we going to go and say back, let's shut down the internet because we want those big fish to be back in power, right? It's not going to happen. We have to get used to a different business model. That business model says that we are on the show. With we, I mean the creators and the consumers. So-called consumers. Not the industries. The industries are there to facilitate that conversation between the creator and the inside. Not to run it. So we're going to see entirely different cultural industries based on creating a connection between the creator and social media. Clearly, is where this is already happening. A great book came out, a book called Lycanomics. If you want to read a good book, apart from mine, of course, you should read Lycanomics. Because he's talking about what happens when people like what you do, how you make money with being liked. And I will grant to you, it's quite difficult to be like as a bank. It's possible, I guess. And it's actually becoming more possible now. But Lycanomics is huge. It's a huge boom for creators because we can all of a sudden use this kind of reputation economy. This is a cycle of cloud with a K that shows the social influence the rating of people who use Twitter and Facebook. And if you have a rating of over 15, if you go to certain American hotels that will look you up and they will give you an upgrade or a free airport pickup based on your cloud score. Because they perceive you to be selfish. But I think we also have to be aware of publiccy overkill. You know, the overkill of constantly talking about. It becomes sort of a curse, right? Because when you share a lot of things, it's a perpetual motion of friending and talking. We have to also be aware of that. I think in Switzerland we have a quite good balance on this, actually. And we should keep that that we don't end up being a whole jail of social connections. This cartoon with a guy in the room who says, you look just like your profile picture. Kind of an interesting thing. You know, transparency is great to show who you are. But as creators we must retain some sort of mystery. And it can't all be completely explicit. There has to be something that we keep that is a mystery. And of course now we're heading to the society where offline is the new luxury. I remember that 10 years ago we used to go to a hotel and they'd charge you a lot to go online and they'd still do them. Now you can go to hotels. It'll cost you $50 a day for a guarantee that your mobile phone will not work. They block it. You pay for that. So if you're really into luxury you should explore this. I think this is crucial. That we afford ourselves to luxury your disconnect. Because clearly the creation process does not work with you always being sidetracked into other projects. Very important I think creativity as my good friend Albert said creativity is the residue of time wasted. You ever been to Burning Man? Who's been to Burning Man? You guys know what Burning Man is? Okay. Well it's kind of late to go there now but you know. This is me. This kid does not need it. It's a great example. We need to waste time to be creative. I mean we have to have the permission to waste time. This is why so many companies I work with are not creative. Because the minute of time we waste it is immediately said oh this is that's why you're not allowed to go on Facebook in your company. Because you're wasting time. I mean imagine that logic. This is a lot of people. So here we have a particular problem today. We have broadband technologies. Making us faster. We have narrow-banned mines. Here's a great example of a narrow-banned mine right here in Switzerland. Imagine right now the IVI in Switzerland which is a Swiss organization of the record labels. He said in a statement about the policy of Switzerland. You know Switzerland is illegal to download music but not legal to upload music. This is quite different. But he said it's not Switzerland compared to an early music consumption the income is to low. Politicians still put up with the steady costs of jobs in the Swiss music business unless it's fair or illegal it is not acceptable leads to cultural flattening. So he is clearly somebody who does not understand really how technology has changed but that the mind is still in a dial-up internet. He probably has his emails printed out. But what's happening here is in cultural policy and what we decided we completely broken up the rotary is not about restriction but about permission. It's not about control but about engagement. I mean as an artist you would notice if you're looking for control of everything that you've done if you picture so you will not get engagement you will not get trust you will get nothing. But we also have been discussed at a global level and also been discussed in Switzerland like so far Acta, Pipa and other ace. The internet builds to disconnect people like we have in our neighboring France with Hadope. I mean is there anything more ridiculous these are culture and culture the cure of these ideas because they are respected of network. We have to resist their language urge you the federal office of culture and other politicians not to go down this direction. This is technical Wall Street Journal had an article about the future of the film business and what they do here is they hide their roles of film while everybody else is popping up all over the place in creating other ways to watch their movies. Now let me ask you a simple question 32 million Americans are subscribing to Netflix which is their flat rate music service for 10 dollars a month. 32 million. How come the service isn't available on a global level? How come it don't happen in Switzerland? Or in India or in China? I call the answer simple because there is cable that's having a lot of coverage. We're supposed to use that because it makes more money. So when you think about this piracy piracy is unmet demand. So this is very important for the commercial business because piracy is a driver. What we need is well-native business models and as this beautiful cartoon says we can't tax a cat. We can't prevent people from doing what they want on the internet. If we want to do that we have to become China and even there it's not working. So I would submit to you that traditional copyright is a burning platform just like the BP platform here. It's a burning platform because neither the word copy nor the word write is something that is really relevant on the internet today because everything we do is a copy. You're listening to a YouTube statement, it's a copy. You can convert YouTube I'm sure you know about this into everything. That's how people get music. Everything on the internet is a copy. So what are we going to do about this? We need a new platform. Here's the example of my colleague Ross Dawson who was there who's talking about the future of news. This may be interesting of some of you in general as a business man. Basically what's happening here is that we're finding out that the value of news is not the report and the smart writing that is of course the basis of it but all the extras with filtering the interfaces the relevance. Being inside and designing the reputation giving example I subscribe to the economists I don't bring all this life or opinions or the reporting but I'll have the writing but here's the only reason why I spend a hundred dollars on the audio version of what they write in the car. If they give you a nap you can download the app you can listen to the audio volume by then that is the only reason. I don't have a subscription because I love what they write or how they write. I do but I only have... So we must learn in the cultural industry in the cultural business to build value around the content not with the content not just the content. New York Times has a paying wall you pay 300 dollars a year you'd have to be totally in love to pay 300 dollars a year which they have 800,000 which is a lot of profit but not America's 320 million people not really an accomplishment I would say but Netflix is pay will and we're about paying wall as a band. So the future of media is here this is NASCAR on Twitter. NASCAR is a channel on Twitter now using the Snapchat where they publish short movies and tweets and this is becoming a TV channel. You guys know Ted.com a TV channel. So the future of media is about real-time peer-to-peer distributive media and I'm going to breath out pretty soon because otherwise we'll be here in the evening I won't be here anyway but I'll be talking but what's coming next this is very very important I mean we're not in Europe out of 500,000 a year this is what's happening with money I'm going to tell you what's called sustainable capitalism one form of capitalism that does not just use externalities to make money off and this has a lot to do with culture culture is the part that can make money also sustainable we can learn from art to stay how to be sustainable and not exploit the system I think of course the reality is it'll be both the equal to equal and money at the same time so a quick take away for you point number one we're living in a network society refusal is useless you can say okay you're going to go off the grid you could be in the matrix over here you can go under them you can do that a bit of a connected society will not be available to you if you choose to disconnect or if you want to disconnect but that's obviously not going to happen so we have to learn how to live with this what martial law is called chaos and noise that is something that we have to learn how to filter we're moving from an ego society to a biosphere, an ecosystem if you're a creator if you're the cultural business this is very very good news because culture and creativity always has to do with having a network with being connected and this is also what businesses can learn from artists how to actually now improvise how to set things up another irrefutable trend that no consumer and parliament everywhere okay still here that's good okay so we are the show that means we are actually what's happening on Facebook we are the show of Facebook I mean some people call Facebook a perpetual virtual reality show that's very true but if we weren't participating in Facebook and we can actually can make that happen if we want to we can leave okay so we are the show this is the biggest leap in the creative industries that we've seen since the invention of the phonograph social local mobile take some time off use waste to waste some time to be creative a few way up we're going to do about inventing something okay this is my final group turn up the sound please and this is too good to waste sorry I have to go into this and actually queue it up because okay so my final message on this is this one I always said life is like a box of chocolate you never know what you're going to get that's my final word let us know what you're also talking thank you very much and have a good day