 Here to tell you why some people's nightmare could be your nirvana. Please warmly welcome get Leonhard. All right Thanks very much. That was a great intro Thanks Okay, here's my iPad, sorry No Android, so I'm gonna read tweets. It's a G G Leonhard G leo and HRD I'll show you in a second my Twitter address and if I actually get to it I will try to read your tweets and and respond. Let me just bring this up here right So it's a great pleasure to be here. I live in Switzerland I was born in Germany. Don't hold it against me, please. I Lived in America for a long time for 70 years. I used to be a professional musician. I made 20 records. I Had a real great time as a musician, but in the mid 90s I jumped on the internet as an internet entrepreneur made a lot of money lost all the money when bankrupt 2001 And basically proceeded in a direction towards understanding what media looks like in the future I wrote a book in 2004 called the future of music Which is translated and I think of 15 languages probably not in Dutch, but That book is actually still selling which is very sad considering that it's quite old All my other books are available on the internet for free I just tweeted earlier a tweet just look for GERD GRD and free PDF and you can download all of my books On the internet read it in ever which way or don't print it whatever you'd like to do So as a futurist, this is essentially my job Just a question of warning. I didn't become a futurist because I knew what a futurist was I did not actually know what a futurist is when I wrote the book the future of music Together with a friend from Berkeley College People started calling me a futurist because I was always talking about the future I don't know if that word even exists in Dutch and German. It's futurist same thing But anyway, I didn't know what it was people said well you talk about the future and media So you the media futurist I became a futurist, but this is my job is to listen to stuff that happens There's a saying in Chinese That if you want to know about the future ask a five-year-old and that's probably true So that's what I do. I ask lots of people what they think about the future And then I collect the information and here are some of our clients You know, I run a company called the Futures Agency. We like the CIA for the future, you know agents for the future positive agents hopefully And we have over 100 clients worldwide including of course big media companies But also technology companies and I teach at various colleges and so on around the world Here's my Twitter handle G Leonhardt I don't want you to use your device while I'm speaking, but if you are doing it anyway, then you can tweet or Same thing on Facebook All right, so let's start with this. I mean we know this is a fact already It's pretty amazing what's happening around the world is that the internet is becoming mobile Which means it's becoming useful the internet on the computer wasn't useful because it was about work mostly and To consume media on a machine like this is not really the kind of experience that we've liked Also advertising on the internet really wasn't very useful because it was mostly skyscrapers and pop-ups and interruptions Nobody really liked it very much now all of a sudden We're connecting with mobile devices and I don't mean iPads or iPhones because of course They're important and they're the first but very cheap and potentially even free devices in the future Most Africans will not go online with computers because they don't even have power in many places Right that they're using cheap mobile device look at the data explosion right now here in 2011. We're somewhere like I think 200 or so petabytes, which is What one million gigabytes or something right and look at the explosion in the future from data? So this data is not generated by CB a CBS or the BBC or or MTV or The Spiegel right it's generated by the users Uploading downloading sharing stuff generating media themselves So now for the first time ever we're actually also producers of content even if it's just what's called meta content Which is content about content for example if you see a movie you make a comment that becomes content That goes with the movie so you see this happening in the future in all different places all over the world You know this absurd huge explosion of of mobile data So you can say now looking at the at the trends here. This is us audience change 2009 2010 17.1% more people are watching content on the internet than before everything else is in decline This is us numbers are us consumers move very quickly It's gonna take us longer in Europe for example in Switzerland people are not at all this extreme will take longer And of course in India, it's hard to go online So I will not period but in many places so it's gonna be harder for them But if you're looking at the worst hit write magazines newspapers cable television us So give this ten years when you are ready to to start your company or maybe five years Or you already have some maybe I'd basically if it's not online it doesn't exist That's sort of the end of the discussion here, right? So you can see this complete convergence of cable television magazines newspapers and the internet. That's what's happening right now So it's not that broadcasters will go away or radio stations But they're all going to merge with what we see online right all coming together in this huge Convergence we talked about converges in the in the late 1990s when I was in San Francisco do my startups And there was Napster and all the early internet companies are we thought okay in two years? It's all online but was way too early of course But all the things that we had discussed weren't wrong that were just too early So look in this direction. It's all going online and basically this is our daily occurrence now. It's complete disruption Imagine for example, you run a four-star restaurant in France and the Geet Michelin you're in the Geet Michelin and it's printed every two years And you have your spot in there and people come to you right, but one day people start showing up with their smartphones and they don't like the food and they keep talking about you online and on trip advisor and and Quipe and many other websites and they share opinions all of a sudden your business is Declining because you no longer have the control of the audience which was the book before the Geet Michelin So disruption is now everywhere for example banks And deep trouble because now we can exchange financial information online We can use applications to calculate our loans Right with lots of people do this even an application to get divorced So if you're a lawyer you can you know you can use this application to help people get divorced So this I'm not using it myself, but I could have used it years ago. Anyway Disruption, right There's disruption everywhere. So this is great for you because only disruption will give you successful innovation There is no innovation without disruption Because if you're not disrupting something you're probably not doing something right that somebody else could do Take folks out of the most successful entrepreneur in the last decade really or last two decades Richard Branson Virgin everything that he does is about disruption Doing something better than the other guys and he has failed of course But in general that's his sort of mantra at disruption and Henry Jenkins who runs the MIT Media Lab or used to rather He's somewhere else now. He says it's not about technology. It's not about gadgets. It's about emerging cultural practices How do we buy how do we add information? How do we share? How do we bank? How do we get education? It's about cultural practices Everything we do is about culture is not about tech and tech is just a surface of this So don't look towards computers or geeks or technology, right? This is about how people are changing in the face of technology that we have folks are about a hundred years ago roughly a hundred years ago a Little bit less. We had this invention called the radio Okay, when the radio first came along all of the composers Publishers artists said this is a very very bad thing Because people can listen to music for free Not good So that they refuse to make it legal and every single person in the country all over Europe and especially the US Was using the radio actually using it without permission and people got killed over the radio because there were the enemies of the musicians One day they figured out okay 99.7 percent of the population is using radio and listening to radio We have to do something So in the US this went to Supreme Court the court said it can't be illegal because everybody loves it Figure out a way to make it work And then the court said it's not illegal to have music on the radio, but you have to pay a license fee Which is how composers and musicians get paid by the use on the radio today Forward to the internet same thing right? It's not good because it's free but the reality is Everybody's using it. Everybody's doing things. We have to find a way to license what people do rather than make five billion people change So I'll talk more about that in a minute, but Looking at this slide from a good friend of mine Ross Dawson from Australia He's talking about when newspapers will stop printing And as I was saying earlier the Americans move very quickly with change. So they're first 2017 is when Ross thinks people will stop printing newspapers by and large maybe on the weekend And you can see this happening right now the New York Times is thinking about whether they can just print on the weekend And all these things I mean obviously this is a huge topic because 75% of the newspaper budget is not making the content But the cars and the printing presses and the ink So the problem with newspapers is not that we don't like news or that we don't not willing to pay for Content the problem is that 75% of the money goes somewhere else rather than the content Which we may not like so much. So would you rather pay for a truck driver? To deliver the newspaper or for the news themselves, right? That's of course a key question. So here in Holland I would you're very safe still 2027 that's a long time so you can help innovate, you know, I don't think it's actually quite true, but just sort of a ballpark in China and the US in China 97% of people that are on the web are watching television over the internet All right, in other words because many of them don't have cable or satellite obviously They have to watch stuff like Ted comm or for a dot TV or big thing Go, of course YouTube by YouTube being the most popular So this is called OTT over the top, right over the top television will beat cable in the long run I mean cable has huge advantages today because you know, it's it's nice quality. It's quick. It works It's it's really easy to use and so on but if you see what's happening around the world is basically The most crucial thing is that this television knows who you are It's very scary also, of course, we maybe we don't want the television to know who we are depending on what you're watching But what you see today is that every single television that you buy can connect to the internet There won't be a television in two years. That doesn't automatically connect to the internet when you have a connection So every electronics show you go to every television connects to the internet does all these things so you can watch television You can chat with people you can look at your flicker photos like all the stuff where you have to be a geek today to make it work And this will work in the future and where all the TV shows coming from for these channels, right? I mean today we have what a hundred digital channels here in Holland, maybe I Used to be just five Terrestrial channels now we have a million channels or 10 million channels because if you want to watch about yoga all Day long you could do that today on the internet, right? It works today So that content is coming from a huge crowd of people So now if you're a television producer or a film producer, which I also do I have some movies called future talks that I've been working on We're not looking towards the discovery channel or the BBC to put this out We're looking towards Facebook YouTube Netflix Amazon and many others So you will see in the future that we're going to seek companies like Facebook develop TV shows Which they already have said they want to do and YouTube has a hundred million dollar fund to create television shows So that's coming back in the future. You're extremely lucky to be in this period because you no longer have to go to LA To figure out how to make a TV show or to help us in for that matter. So It's of course both happening at the same time. It's not either or so then we have this trend Now that basically Google has the best embodiment of this trend is that the market value of Google here It's actually much higher today to that 80 billion. I think Compared to the traditional guys in US via calm time Warner news corp and so on Look at the market value of Google and beats all of those guys easily And Google doesn't even have any content. They don't make any content They don't make anything. Well, they make lots of tech stuff, of course, right? They're the biggest provider of public domain software. All right, they're public They publish lots of stuff, right? But their market value is based on this which is data Google is the master of taking data from us and turning it around into advertising Okay, and one thing is for sure that won't be a future of media without the future of advertising Because guess what you can pay for content either yourself. Most people don't Or with taxes which all of us do in Europe and there's some reasons for that too, right or with advertising That's called paid with attention They're paying with our attention. Did you know how much money is spent on advertising to reach us to buy stuff? You'd be amazed right the mobile the mobile business mobile phones and mobile networks is $1.8 trillion and The advertising business is nearly five hundred sixty billion that's spent in advertising plus another five hundred billion in marketing Public relations at other assorted promotional things. So it's roughly a trillion dollars a trillion dollars is spent on selling stuff to us Take the money of a trillion dollars, right? That's four times the market value of Google How much is the music business anybody know Answer quickly because it will change it will go down the next second. Okay, right the music business is about 17 billion dollars Okay, 17 billion. That's one point seven percent of the entire global advertising budget If you don't think that we can support music or other content with the advertising you're looking in the wrong direction It hasn't worked so far. That doesn't mean it won't So keep in mind for example cable television If you have the cable come into your house to watch TV It's a lot more expensive than you're going to pay with your 10 or 15 euros for the basic cable It costs like a hundred fifty euros to get the cable to your door So the cable guys give you television for free Basically because they hope that you will buy more You will buy HBO or the wrestling channel or whatever stuff you want to buy the average American Consumer starts with twelve dollars for cable. They end up spending eighty five dollars a month Okay, that's called upselling You don't start by saying the consumer give me a hundred bucks and you can watch television Good luck. So Spotify says to us today give me ten euros to what to listen to all the music you want Most of us won't do it. I Will do it. I am doing it But it's two or three percent of the population if Rupert Murdoff says to us give me a dollar a week to eat the newspaper Most of us won't do it If we make it free and we say, okay Let's find a way to access the content and make it a really big audience and then upsell you to the next level Most of us will do it Just like cable TV So it's all driven by data and by advertising for example here paying with attention most of you I'm sure use Gmail Many of us do why is Gmail so great because they have what they have 450 people on this team Making cool stuff for us for free In return they read our email Google reads our email and not personally, but I mean you can see in this example. I have a video I see an ad over here, right and it's tightly synchronized. It's actually very good So when I go to Hong Kong, I use my Gmail it says okay Here's a great hotel because Google knows exactly I don't buy cheap hotels and what I like It's actually perfectly on target right because they've been reading my email for the last two years So what's the deal? I'm giving them my data in return. They give me free email That's the deal So Google makes right now 2.9 billion dollars a month of these tiny boxes Here on the right, right? In return we get all the cool free stuff from Google. That's the deal paying with attention And that's gonna happen for a lot. I mean Google is a media company if you haven't noticed They're a media company, right? They're heading in the same direction here. I mean obviously Apple is doing the same thing because while we're using the iPhone we're going to see those cool ads that Steve wants to put in there That looked like content. They look like they're completely targeted Facebook has advertising. You've seen that I advertised on Facebook as it works great You see all the stuff that's happening here with Facebook and location in America You can log into Facebook and you go to a mall and they give you free jeans at Gap Just for the fact that you've logged in and said who you are That's called paying with attention Twitter is a bar in Germany where you can get a free beer if you tweet about them I tried it beer was terrible, but the tweet worked So that's all called paying with attention Now if if you look in the future of media somebody has to pay for people to create things right obviously You know people want to get paid for what they do, right? But are we going to look to the consumer and say as of now the rules have changed It has never been that we paid for content flat out like to look at it. Okay, we didn't pay for newspapers the advertisers did We didn't pay for ready our taxes did I mean indirectly we paid but you know in a pool So all of a sudden the rules are supposed to be you pay to watch the newspaper on an iPad, right? It's not going to work Because we pay with attention We may decide that we don't like to pay attention so we pay and we pay with cash we can do that too But that's the model of the future. So basically we're all like this We're all up there in the cloud doing stuff Forwarding recommending tweeting rating wikipedia Amazon reviewing all that stuff. You'd be surprised how many people do this now It's about 70% of American kids up load stuff to the web 42 hours of video on YouTube every minute is uploaded 26 million pictures of flicker a day every single day So this can't all be fools. I mean, there's a trend here, right and that trend put forth by the European Commissioner She says personal data is the oil of the internet. I didn't make this up. I use it a lot myself But data is the new currency and many of us will pay with this kind of data That's where the money will come from and right now we're just in the middle of orchestrating this So all that stuff will basically be a sort of chasing our data and it's very important that when we talk about data We talk about trust transparency user control and value And this is what Google is giving us. It's amazing. They actually have given us so much that we become suspicious of them They're too good to be true actually because now we're thinking like just like Facebook. We're saying, okay We we kind of trust them. They're sort of transparent, but if Facebook makes a mistake We have them within two hours. We can hammer them. I'd like last year They changed the terms of use that everything we put up there belongs to them Within 20 minutes a million people have quit Facebook within two hours. It was like three and a half million All right, and within 14 hours that came back and said all guys were so sorry just we go back They can't control us we are we're controlling them That's quite different than say Microsoft fine or the BBC which in a way we can control but takes longer so That's what's happening with data now. Let's talk about a couple trends that are happening in the digital domain You know what this device does it makes two headphones out of one right the most popular thing for kids So we don't have to share the earplugs like this, right? I have like a dozen of those for my kids, okay? The bottom line is sharing is now what people do with media If we don't allow them to share we can pack it up Because that's what it's all about If I can buy an e-book for 12 euros on Amazon Kindle and I can't share it with somebody at least a certain degree Yeah, it's useless If I buy digital music on iTunes, I can't make a ringtone. I mean I'm using iTunes anyway But have you tried this doesn't work. We can't share. Yeah, we can give somebody the iPod. That's it But without sharing with that so sharing is a default whatever you do has to include sharing has to work And now there's a bunch of laws that I'm sure you've studied the digital economy act Haddopi law in France three strikes octa and all this I'm sure you know about this stuff if you've looked at it, right? It's basically the idea of saying if people share stuff on the internet Then when we catch them that can be disconnected. That's the idea and There's laws that affect pretty much in every country now in Europe Starting with the UK the most progressive Well, all the good music comes from we used to come from man But there's a great saying by Benjamin Franklin who says those that give up essential liberty to obtain a little temporary safety Deserved neither liberty nor safety. I think it's a good reply to this If you're willing to put me into the same place as China where I can't do what I want to do on the internet because there's old rules That don't fit then you don't deserve the new rules Think about this for a second I mean if we're going to get locked up because there's no way to actually legally buy what I want to buy because the price is too High or it's not available Then I'm basically in a position to where I'm criminalized by default So right now there's estimations at about 96% of all kids in Europe are criminal by default Because when you click on the link on YouTube where the content isn't licensed you are also liable for this When you're cutting and pasting from a newspaper and putting up on your blog most cases would make you liable using a PDF from somebody copying an image Recording a stream So that that's not a good idea. I think we need to change that and I think we're heading in this direction Also a great opportunity if you're graduating from wherever School you on right now, right? Basically, this is what's happening. We're heading into what I call telemedia What that means is the complete convergence of telecommunications mobile phones operators ISPs and media so we have a future scenario where we will see those parties Content owners advertisers telcos social networks collaborating to create a whole new model a Model of where media will go in the future and that model is going to be based on what I call usage, right? So the right to use the medium rather than to copy it because nobody really knows what a copy is anymore I mean today if you go on the web and you listen to a radio station streaming Every person knows how to record the stream all of you know how to save a YouTube video And but in theory YouTube is not delivering. I just not copying is just streaming But in reality it's the same as itunes. It's a cheap itunes. They're free itunes Just recorded. I mean if you go to a party of kids today 15 year olds or so it used to be when you go there There would be a huge hard drive with a hundred thousand songs, you know taken for free, you know somewhere And that was a great accomplishment Today when you go to party, what is it? It's just YouTube. I just play the song straight from YouTube Or whatever your groove shark or Spotify even or whatever, right? But it's virtual It's it's about access. It's not about ownership And the key trend here is that you know in the old days when I got when I started on the web This was the internet right and basically the internet was about work I mean it was work to actually make it work obviously because you had to have this box, right today We live in this world Right where it's about it's fun This is that mean when you when you think about media not think about work This is the great thing about the iPad and other tablets, you know, we're browsing where we're looking at stuff We're not actually thinking about how we can turn it into a slideshow or make money with it or whatever, right? It's it's consumption or participation And then as Kevin Kelly says, you know, we live now in an age Where it's people of the screen I mean just look around you when you're traveling there's screens everywhere even in the train or even in the airplane Now you can use your Wi-Fi, right? If you go to Asia, there's QR codes Projected onto the buildings, right? I mean there's all kinds of things now You can go to a shop and you can stand in front of a virtual mirror in Korea And you can put the clothes on and then you can tweet to your friends All right, and they will see an image and they can tell you if it's a good fit or not All right, I mean there's screens everywhere So Kevin Kelly who's the founder of wire it says we're people of the screen and And people of the screen are just not the same than people of the book. I Hope that people of the book don't go away and because I love the book and I would love you to buy my book, of course Or download it for free for that matter as we go back to the screen But basically these people are not the same kind of people are we going to go those people and say you know What if you want to buy my book? It's 14 euros, but the printed book is 15 euros. That's not going to work I mean that idea is crazy That's like saying you're going to get less Value because you can't actually trade it and it's not physical right our distribution costs are zero But we're going to make more money than before and restrict the use That's not going to work. I mean people of the screen are extreme people as we can see here You know play there like screens everywhere And then we have this right I mean how many of you I mean of course you're the perfect target group for this I mean the like button is the most powerful instrument of advertising you can imagine I mean I get every day I get emails from people saying can you please like me? All right, and I get tweets saying I'll pay you a thousand dollars if you treat about my product Like my product I'm always saying like what if I had to like your product I have to look at it first and most of time I don't like it So I don't bother but of course that would be cut of a million dollars. You can try me but a thousand But anyway, um, this is the most powerful advertising message 86% of people buy stuff because other people recommend it We don't buy things on facts. We buy things based on emotion If my tribe my peers says this is a great car I'm interested okay, and if I endorse the next the latest Audi car on my Facebook page Lots of you will look and say oh, maybe should take a test drive I mean stupid in a way, but that's how it works because we're we're tribal animals So the like button is extremely important So Facebook is building an economy of several billion a month based on the like button Because imagine if you're a film producer Facebook says to you, you know what if you get a hundred thousand likes Will produce the next series with you And then Facebook will say you know what if you will buy Facebook credits, which is the Facebook money that Facebook is just not launching right? Your fans can give you a credit If they like you automatically which is like 10 cents or something right? So this is like Kickstarter or sell a band or so but inside of Facebook So you can click on the like button and you can raise a hundred thousand euros for your next movie This sounds like theory now, but just give it two years. We'll have this But be warned, of course, it's extremely hard to get money from people in this way All right, it's in principle. It works and Kickstarter is a great example Kickstarter has raised 40 million dollars for 27,000 projects So it's very hopeful. It's not a fix all magic one, but So we're going to this world of where basically people are going to say no, what if I want to watch a movie? I'll use whatever screen is available as long as I have a central place to where the movie resides So most of people today will not accept that they have to watch tart or the other german show or derrick or whatever Old people watch in germany like myself right at quarter after eight. I mean, that's a stupid idea To be on the schedule of the television So you have to finish your dinner in time so you can watch television I mean you have to be over 50 to accept that That we're not going to live in this way We're just going to say well, you know what I have 50 screens I'm in the car on the airplane on my mobile phone on my gaming device on the hd screen And whatever I have access to is going to show up in all those places All right on all different screens depending what I do and of course the most important part All the stuff that we do is in the cloud Up there somewhere it's not going to be on this box over there Cloud computing you've heard about cloud computing That's the most important part So our world is going to look a little bit like this right we'll have endless choices And this is a tough part Because when you have endless choices it used to be when you go to london 20 years ago or so you couldn't actually eat in a lot of different places with all fish and chips and pizza Maybe some greek food right that would be it Today when you go into london you have the most amazing choices of restaurants You know anything from afghani food to whatever you can find right so you have this So it's extremely difficult to get a big audience when you have thousands of different channels So we have fragmentation we have aggregation But most importantly this is your choice if you're in the media business We can't watch a hundred thousand movies a month There's no time for all these things there's no time for all the tweets all the facebook updates all the email All the sms we have to select We have to filter So today it's no longer about distribution Because distribution is plenty you can watch free or illegal or not makes no difference You have all of the choices all the time Now it's about selection relevance The average person studies have shown listens to 40 new songs a month 40 songs in music That's sort of the range the human range Now why does it matter if I have access to 10 million songs or not? I just consume 40 makes no difference Why do I need to buy the 40 songs? Can I not just have access to 10 million and use 40 songs? Because I can use whatever I want then this is what we have on cable tv. So curation is going to be the key factor Curation relevance. I mean in western countries. We're more starved for time than we are for money That's kind of sad actually, but That's the truth. I mean basically we're not so much worried about spending a euro The average person with an iphone spends four dollars 80 cents on apps every month Downloading, you know divorce apps or whatever and these companies as well I hope you don't know farm will It's very addictive, you know I showed it to my kids and they're playing it all the time which is kind of to bad now They should show it to me rather but anyway So farm will Is an amazing game. It's owned by a company called zinger Last year farm will made 360 million dollars. It's a free game How do they make 360 million dollars? You can buy a virtual carrot or a tractor. I'm sure you know You know, it's it's gamification, right? So basically our society is becoming involved in all kinds of games That's called gamification. This is a keyword for the future of media Make it a game. You'll make it successful, right? Education will become games I mean games in a different way, of course, right? But there's already lots and lots of games that you can play to learn things And that's going to be the future as well I mean if you look at this direction four square is essentially a game anybody here on four square Location is a game, right? We become mayor. We do all these things, right? It's a game Is it real? Yeah, it's sort of real, but it's also a game my facebook in a way is also a game And that's also the reason why we can't take it too serious by the way, right? Like twitter in a way also is a game All right, because we're gaming it so to speak by retweeting and doing all these things That's why we can't take it too serious. It's not exactly the same as real life I mean there's a lot of overlap there, but it's also a bit of a game So this shows the future essentially will be a combination of some of the real life stuff and what I call gamification For example, there's lots of appetizers who are now creating games Based on things for example, you have to go and find the red bull sticker somewhere that's hidden in a place That's published on facebook and and so on and all these kind of ideas So that's definitely happening in the future here I discussed this earlier all content is moving into the cloud So if you're tv producer or film producer or publisher, that's the direction that it's going amazon Six weeks ago announced that it allows its users to upload things into cloud and listen to music everywhere And of course the music industry and their and their eternal wisdom They went and said it's not legal to do that because it's fun, you know, that's can't be legal so All content is moving the cloud regardless right and basically what we have now Is we have this whole debate about copyright And I want to touch on this topic because it's crucial, right? It's academic. The question is totally academic Okay, first of all everything we do on the web creates a copy We don't have to say we buy a copy right then in theory, of course all rights holders have the right to refuse the copy So when you make the copy of the youtube video in theory, somebody else can say that don't allow it But in reality that right is academic because you can't enforce it because nobody's going to talk to you about one Rip from a stream, right? so what we're seeing right now with services like spotify simphi and Papily and flipboard anybody know flipboard here It's a really great app for the ipad where you can make your own newspaper out of twitter and facebook All right, and there's a key question there when you're sucking off somebody else's content from the web Through ours as feeds like flipboard does Is that legal? Should that be legal? Do they have a copy right? So we're moving down to a world that's much more about what I call usage, right? It's the idea of saying, you know what I'll allow the use of it because I want to share the revenues Why are the record labels allowing spotify? Well, at least in some countries, you know, of course, they're giving it a very hard time across the board But I think it's okay in holland, right? You have spotify, right? Yeah So they're allowing it because they're saying, you know what if people access Our music and many of them become more interested and buy other things that's good for us In theory, right? But they don't like the idea to be worldwide. So it's only like five or six countries that are blessed with spotify right now So we need to get away from the idea of saying we can use copyright to prevent the change of business model Right. That's a very bad idea because it will certainly kill you Because what you're doing here is you're using something that in principle is yours, but in reality Everybody finds a way around it I looked yesterday. There's 1,450 websites We can stream motion pictures the latest releases for free stream not download You can watch the movie online for free I mean all of you know how to do this, right? I don't have to tell you right So the fact that I'm not making a copy does not mean that people aren't watching your content for free So you haven't downloaded you're not guilty. You have just streamed you're half guilty. They're like Does that make any sense? It doesn't make any sense, right? So we have to move to a new rights regime a web native way of looking at this problem Which brings me to the key issue All of you I'm sure on facebook. I think it's about 45 percent of that people on facebook 33 percent of swiss people This is a graph of facebook showing how people are connected in which countries 650 million people as of yesterday 21 billion minutes spent on facebook 21 billion minutes That's every fifth minute on the internet Okay, and so now social networks, and this is not just about facebook There's 10 others like facebook like qzone in china and many others, right? So these social networks are the next broadcasters All right, they're the next people who will connect us for watching stuff. What is facebook broadcasting today? us And we're sending stuff to each other That's what facebook is doing now facebook will go public next year on the stock market It's supposed to be the biggest ipo the initial public offering ever in the history of the of the market, right? So get ready for that next year. I think they will probably raise a hundred billion dollars Okay Now if facebook gets that money and they will and they already have quite a bit stashed away they will buy a tv license They will buy a radio license. They will come a broadcaster that you will have the music right next to your friends list for free Because guess what what you're doing on facebook creates so much data that they can sell advertising around it All right, so facebook can say you are a 14 year old girl You like the screaming pumpkins smashing pumpkins, whoever they are All right, then they can define the profile of who you are right and they can put it together And they can target you also by location and by all the stuff you've written And they can get 10 bucks from an advertiser to click on the ad So that kind of stuff will easily pay for for music I mean if you're looking at these stats what people like to do clearly make friends organize events play online games interact with people All that stuff music and all these things. So that's the perfect network, right? So if your vpro or the bbc or ztf or arte That's going to be your main competition And that's all as a creator. This is our major chance of getting distribution That's completely different than what we had so far And then there's all these discussions about you know online and offline So basically you have to realize especially because you are still looking very much into the future After you get out of school There is no such thing as online offline Offline is a mental state It's not a technical state So you don't want to be bothered you turn off your phone, whatever you do, which I recommend you do occasionally For a couple minutes per day. No, just kidding Then you go offline, but that's not a technical question There is no such thing as the cyberspace and meat space, which is what we have here, right? Meat space or whatever that means, but it's this whole combination of things. It's the same thing Real life is the same than virtual. It's the same space, right? Now people are actually liking stuff In israel, you can go to a fun park. You go down the slide You hit your your button and the button says I like the slide All right, it's an electronic button and it shows up on your facebook page saying I just went down the slide With a photo of you if you want So complete convergence of real life and offline So if you're looking at this way, I mean you've seen this graph already before facebook was becoming as powerful and as important as google I think facebook will make more money than google And there's enough room for that because it's about social connections. It's about tribes, right? google is about data Which is less about us but more about what we do And facebook is about connections So they go together very well. It's too late for google to buy facebook, but they will probably buy twitter As a consequence, so see this happening already You know alicia keys has a place on facebook where you can buy her music I mean if you're not streaming it for free you can buy it, right? amazon connects to your facebook friends now If you want to find out what your facebook friends are buying you want to publish what you're buying You can connect with them and then you get this screen To where you get all the other guys that you connected with and see what kind of books they've purchased And this has brought up amazon's revenues by 10 percent This is a feature that a website can build within three afternoons Basically, right? It's an api It's connecting data So Here for example Ava Levine same thing the bbc has of course lots of things algezero the tv show or the tv channel you can watch on facebook You don't need cable tv to watch algezero Just watch it there So I mean that's the trend facebook as a platform the symphony orchestra You can watch batman now. Of course, you have to pay one or brothers for that All right, but guess what now you have to pay the future will be you don't pay Facebook will say you know what if you want to watch the movie you welcome to pay if you want But here's another option you can opt in to hear from audi Or you can get a multimedia message or you can watch this trailer Or you can log into the location and go for a test drive and afterward you watch this All kinds of option of paying with attention Zook You've seen the movie the movie is nothing like the real life by the way, but it's still interesting movie All right He says That he expects his company to make billions and billions of dollars Turning the tv news film and music business upside down It's good for you Right because there's a lot more facebook's right now than there are big cable tv companies gearing up for this kind of future So facebook is the next cable tv And not just facebook, but all the other ones like it like qq mixy or could and so forth So yeah, we have to get ready for the facebook monster There's lots of good things a lot of bad things about facebook But if you talk about the future of media, you cannot possibly avoid talking about facebook obviously Now the other thing that zook said which is interesting. It says we have the most powerful mechanism that has been created in a generation He did not say I have the most powerful way of connecting with strangers Or wasting time or whatever you want to call this right? It's a distribution mechanism And what is facebook distributing is our attention to each other right that that's the distribution of facebook So that's the way that we have to look and this is one most important thing that's happening on facebook It's also helping us to go from the idea of ownership to access Now let me ask you about this If you're thinking about buying a new car Who here has not considered alternatives to buying a car? Not the train. I mean having somebody else's car car sharing Car sharing and car renting and leasing and all this stuff way that we don't actually own the car Is the biggest growth industry in the car business? And in transportation the biggest growth industry is not cars. It's bike renting Every city now has bike rental programs. That's the biggest explosion in transportation innovation So now you have about 50 companies around the world who are saying don't buy a car share a car All right, you can share your own car. You can share somebody else's car It doesn't matter because you don't have to own it. You can access the car That goes for houses right you can swap houses on the internet. I've tried it Or couchsurfing.com, you know, you can go somebody else's house and swap that right? So that sort of thing is basically happening. So around the world we're making this move for me, which is, you know The central place, you know the The central monopoly entity that broadcast, you know, disney universal studios the big broadcasters, which is not bad But now all of a sudden we're in the age of We All of a sudden I am interested in seeing your flicker feet. I want to see which youtube movies you like I'm reading your tweets. You're reading my tweets. We don't need the bbc to moderate our tweets We do it ourselves So all of a sudden we're going from this idea of the central entity to the decentral entity And guess what the future means we have both this is where it gets confusing for media companies, right? Because they're thinking like okay, they are solidly in control of our destiny When you actually watched mtv or vh1 in the in the past or star television in asia They curated the list you didn't have a say on what person was going to show up on the next clip Or maybe you could call in sometimes but basically you didn't right on youtube. We make the playlist There is no central playlist. There is no central broadcaster, right? So we're going from the world of the network You know the big tv station the big broadcasters the big brands to the world of the network Okay, and this again the confusing part is it's not either or it can't be both Broadcasters will not die Big companies won't die, but all of a sudden these guys have to also say what are we going to do about these people? CNN is the best example. What do you see on cnn most these days? Is not taken from the reporters that out there getting paid It's from the users a million uploads a day on cnn tweets photos and images from the users CNN is still valid only for one reason is that they've taken in what people are doing themselves They work with twitter. They work with video calls. They use skype on television All right, Al Jazeera All broadcasters will switch to incorporate this process and if you're a broadcaster if you don't do this then you become irrelevant You just go away Of course one argument why we pay taxes In europe is that we have the benefit of curation and professional use but it has to connect with this as well If we don't have that then also we are you know, we're going to get dissatisfied from this So we have this idea from one to many which is the past of media and to some degree also the future To the idea of many to many Now you can argue the idea of many to many means there's lots of garbage Because we produce lots of garbage. I mean basically twitter is about 99. Something percent garbage, right? I mean if you if you don't have a filter right is noise You choose to listen to me because I may have less garbage or I listen to you and then we that's how we filter Right, but basically in the many to many world. It's going to be a lot of noise So we need these guys the one too many to help us with the filtering We need both Because the filtering takes a lot of skills, right? So basically it works this way This way as well as this way for example mtv and youtube actually work together quite nicely I mean, I don't watch mtv anymore. You probably don't either, right? But they still have advertisers, which is amazing to me considering what youtube did to them But anyway, so we have we're actually moving in both directions So that's good news and bad news if you're a big company and an incumbent media company, right? You've got to get into the network model But on the other hand if you're only a network company you have to also become more central and do more curation because otherwise There's too much noise So it's sort of we need both I was talking about this earlier the one too many, you know, we have relied heavily on copyright in the past So the record labels would say well if you If you rip something from the city you pull it up on the internet. That's not legal clearly But today we have this thing to where we say, okay Well, we have many too many and the the principle there is that it's okay to use it like myspace had had this principle Right. It was okay to upload and share on myspace and on youtube, which is sort of okay, but not legally Okay, but basically the money. This is the important part, right? This is where all the money was in the past Copyright and enforcement of copyright But in the future the problem is if you keep on doing this You'll basically cease to exist because every all the action all the stuff with appetizers all of the attention is moving in this direction So the money is also moving up here So in other words the television studios The publishers the record labels the authors have no choice and they are seeing this right now then to say, you know What it's better for us to be a part of a system to where we can monetize in what's happening here Then to stay in this corner and wilt Right because if we can't be found we don't exist at most of the paywalls of newspapers their attention walls Okay, so in other worlds if you put yourself behind a paywall you lose 90 of the potential visits Which of those 50 you could convert to pay Can it work? Yes. Well, it works for the Wall Street Journal and for barons. Yes. Okay, that's cool But in general probably won't work The times in the uk has lost 87 traffic by putting up a wall to the free content So we have to be smarter about how this works in the future And I see a new kind of value exchange here And I think that's sort of our daily routine already how much more time do I have I'm going to speak to Okay, good, and then we take questions, right? Okay, so we have a new kind of value exchange This is you guys if you haven't recognized yourself, right? So We we want to pay attention to what is important to us, right? And here's the content That we want to see so some some mechanism goes happens between those two things And that's how we connect, right? But the reverse is also true the content guys want to connect to us, right? And this is the value exchange Right, if we pay attention to them, we get something in return, right? We're actually having an important function here in the future as well as just paying So Talk about how to get paid celli palmer is a tv expert from new york He said something very powerful and very simple. That's usually the case. He says there's three ways to get paid First way is I pay so when I'm blogging and you read it I'm paying for you to read In other words You pay attention to me. I'm paying because I've spent my time. I have to pay the blog and platform or whatever I'm not getting paid. I'm paying for you. That's I pay the blogger The second one is like the times new york times has tried or is trying A couple weeks ago you pay New york times says if you come to our website more than 12 times a month You can't get in unless you pay That's you pay I call this the my way or the highway approach Früst oder Sturbe as I say in german All right, that means you pay or you go away and often don't exist. So the next one All right is the they pay approach This is the very first ad you saw on american television From a watch called bolova Okay, they pay. What does that mean? Somebody else pays for me to get something because they want to also get to me All right, that's called advertising Marketing advertising promotion sponsored branded content, whatever you want to call it somebody else pays 78 percent of all content and media has been paid for by they pay in the past And I include taxes here And if you want to talk about taxes So there's a blended model that's coming up just like it has always been in the future Think of a blender. There's nice blender and stuff these things in there Okay And depending on what kind of company you have who you work with what your audience is You blend the model. I saw the bender isn't working here. Sorry. It was supposed to blend but it's not blending anyway, uh You have to switch to hit the button and blend the model because it's not as easy as saying there's a recipe You should charge for newspapers. You should not charge for newspaper You should charge for apps. You should not charge. That is not as simple I wish I could give you a recipe But the fact is that it's different in every culture for everything that you do for every magazine for every product There are places where you can say, you know what you should pay Example is the most popular movie service in america called netflix Don't worry. You can't get it over here Netflix offers you for ten dollars a month A subscription to all of the movies Streaming over the internet on all devices for ten bucks a month unlimited And you can also rotate dvds Coming to your house 10 bucks a month Why are people doing this right now 22 million people a month are subscribing to netflix? That's 220 million a month an income They have this model you pay And why does it work because it's a low amount gives high quality content. It's reasonable 10 bucks a month It's like less than cable television, which is 50 or 60 or whatever you have all the choices. It works. It's reasonable What would be the amount for music take a guess The amount where all of us would say I'm definitely paying for music Give me a guess Huh a month Come on. You're kidding yourself That would be nice, right? It has been established as one euro a month All right If all of us in europe paid one euro a month All right, that that would be like the lowest. I mean we could make it two even right That would be 850 million euros a month. It's almost a billion euros a month 12 billion euros a year Which makes it already more than half the size of the entire global music industry Why are we not allowed to pay a euro a month because They think it should be more So it's a question of finding the mechanics of I pay you pay they pay and what's the price point, right? I mean, it's obviously crucial I'll skip this because We're running a little bit out of time. We want to take some questions. I'm going to jump ahead a little bit And as you can see I was planning to be here, you know next week Okay, you hear you see the tremendous success of the international federation of the phonographic industry my favorite pif I've written two books about music industry and I got tired of it and I put them in the garbage The music industry has achieved something very important, which is a 71 decline of revenues in 10 years As you can see here And why is this I think about the music business do we hate music answer? No All right. Are we interested in music? Definitely, right? Are we cheap criminals? Most of us no Are we looking to defraud the the the artist? We're not, right? I don't we we don't have mobile devices. We do and So what's the problem with this curve? Clearly we're people of the screen. We're different We're not going to accept the fact that we're going to buy music like 30 years ago, which is a euro a song Some of us are doing that but most of us will not Because we're different people now. We're we're looking for different ideas right now We're looking to go from the copy to access, right? I mean if we can have this find if every subscriber on vodafone or whatever a mobile phone company has access to Spotify bundled Together with your subscription. Nobody would complain Is there money in this? Yes. There's plenty of money in it. I mean, we're going Undeniably from the copy economy to the access economy So if you're making a business plan for world domination for your company in the future, right, it's about access It's not about selling copies So here's a smart guy kevin kelly again, right? He says when copies are free You need to sell things that can't be copied And I tell you one thing we have to face in our future of media copies will be free Free meaning available and you can't do anything about it Anything that's digital will go up on the web. I was in russia two months ago I went to a factory where they're scanning every single book ever known to man Scanning with the machine and giving it away for free on the internet In return for advertising a five from that k download of any book you want for your blackberry nokia form whatever you want free So if your model is to sell copies you're in deep trouble If the publishers are going to look to sell 13 euros worth of a copy of an e-book They'll get one or two percent of the population people like us, you know faithful believers to buy But it doesn't solve the problem. We have to sell something that can't be copied And kevin kelly calls us the new generatives The new way to make money and this is his list. I'll give an example of immediacy When you go to a concert You've paid for the concert ticket you go to the concert and they are recording the concert and when you leave There's a qr code or a link that they sent to you that says for one euro You can download this show that you actually attended live. You can download it just by clicking on the link for a euro Last year in america. This business was 350 million dollars Buying copies of concerts that you actually went to and even better let's say you're You're a fan of a band Then when you go to the concert you can subscribe to all of the concerts for 10 euros For the year. I mean if you're a fan, you'd definitely do that, right? But it's currently not possible because there's lots of issues about what you should be allowed to have this concert And how and so on and so on you know all the bs that we have to put up with that But there's loads of money in this All right, for example the interpretation There's already chinese versions of robbie william singing in chinese All right, you can pay extra to have it in chinese All right, that's your interpretation individualization, right? It's all the other stuff that will make the money Um in danmark. There's a service called tdc that you may know Tdc is a mobile operator and an internet service provider. They have solved this problem in danmark They have simply said you know what if we put music for free Into the dsl connection and into the mobile phone When you sign up for tdc mobile music is free unlimited as much as you want same at home They paid something like 15 million euros or something like that to the white soldiers to get the license Now what they have achieved is really quite simple people who are signing up for tdc. Sorry More important part is down here The churn rate people leaving the isp or the mobile company has been reduced by 50 percent So people stay with this company for the dsl service or the mobile service because they have free music And guess how much that is worth 50 churn reduction and do the math 50 million So they spend 15 million to get music for free and they make 50 million That's a great argument for those guys. This is going to happen in every single country around the world It's cheaper for them to give you music for free than for you to leave the company and go somewhere else with your mobile phone As I was saying earlier data is a new oil, right? This is the example So that's the kind of problem solve and we're going to see in the future We've already discussed this so i'm going to give it a quick wrap up and then we'll take some questions I swear i'll stop now so Okay, sorry answer a few more slides here, but Okay, two more things that people are asking me about. I think this is important People always say, you know what you're talking about advertising and stuff, but you know who nobody likes advertising Because advertising used to be about interruption garbage noise Now advertising will become meaningful in other words when you skip whole airport Somebody will say, okay, you they know you got up early. You want a coffee? You get a coupon a company called grew pong they're doing this already And this coupon will get you 40% off the coffee. You appreciate this ad because you want a coffee, right? But how do they know? Because you shared something that makes them understand where you are and what you're doing, right? So this kind of advertising, you know the watering can That would be like having a huge billboard of mcdonalds in the middle of the airport saying drink coffee All right, that's the watering can here's a sprinkler system They know you're leaving at 6 45 You've just used the taxi or the train. They have the data and they can give you an offer All right, that's the sprinkler system. This is dumb advertising. Which is what we used to have and this is smart advertising Okay, this smart advertising is based on data, which can be quite scary For them to actually know that you want coffee could also be scary, right? But that's sort of the deal, right? So the future will be stuff like this. You know, you don't get a bmw ad When you're in Nairobi and you're making one dollar a day on your mobile phone, you're not going to see that wouldn't make any sense, right? You get to make films with a fort must hang, right? That's the ad you get to participate in the film All right, so advertising is going beyond interruption. This is very important because if you're looking at this slide from Kleiner Perkins They're saying basically on the mobile phone advertising is extremely powerful All right, it's relevant. It has reach. It's viral. It allows transaction This is crucial because if you ask the question where money is coming from clearly This advertising will deliver the money As I was saying earlier trillion dollars a year so a quick summary All content is moving into the cloud If you don't like this too bad This is basically what's happening. All right, when it moves into the cloud whole different rules apply And you can say you don't want to build the cloud. You don't allow it, but that's a theory Right, that's and yes, we can say that and we have said that many times, but it has not been fruitful We can not prevent sharing if you prevent sharing your business model is doomed Look at itunes, right has worked out great 17 billion downloads, but people stop buying people stop buying every single country People stop buying eventually when they've spent 500 euros. They stopped buying It's going from the broadcast to broadband from the tower to the people Broadcasting to each other. I had broadcast and broadband are sort of two different things Social networks are the next broadcasters If you're not using social networks to broadcast whatever it is that you're doing you should There will be Twitter television before too long All right, of course youtube and all the existing channels are important as well We're going from copyright to usage right, which is an extension of copyright just to be sure it's not a redoing It's an extension just like the broadcast license From the network to the network We need to create a different legal framework This is crucial because we can't always say we're not ready. I mean we we have not not been ready for 15 years Since the days of napster, right? We can't just sit there and say we're not ready yet All right, we have to create a new legal framework that makes money rather than stipulates a paradox Now it's a fight for attention not for distribution The media business is not about saying who has the most powerful tower or the longest cable or whatever you want to say About infrastructure. That's still important obviously for the few more years But now it's about attention. Who has the audience? And if you're a creator if you're actually a creator a filmmaker or a musician, right? It's the audience if you don't have the audience you're finished No matter how much money you want to make without an audience. That's it, right? You'll never make any I can assure as a musician. I've noticed so We're going from ownership to access That's the business model of the future. Here's my business models. They're free All right, all these books you can download. I think if you're into music, you should try this one first My latest one is called friction is fiction And I have an app, of course that you can download for a hundred dollars a piece. Not just kidding. It's also free So, um, my first book isn't free I went with the publisher on that one I uh No comment though. Um, anyway, so that's it. You want to take some questions? Okay, look at my tweets. We had this audience's attention. So a big round of applause for now. Thank you We have questions. Let's do them fast Get to the microphone if you like and share your question or oh, we have a mobile one very good Yeah, yeah, I had a question. You know a yos tv Yos tv. No yos tv. You know it. Yo used. Yeah. Yes. Um It's not really popular And my question is why because it covers all the things you just said, but it's it's not a big like youtube That's a good question. I think that last time I heard about use was that they had technical issues with making it work on all different platforms That's one thing, but you know, there's one thing about what's called the long tail You guys familiar with the long tail Okay, chris anison wrote a book called the long tail before he wrote the book called free All right, and long tail says that you can make money by selling unknown stuff Okay, amazon sells about the 35 percent of what they sell is unknown books But here's the thing about the long tail. This is the use problem, right? You cannot just sell the tail It's like a dog without a head doesn't work All right, it's just a it's just a tail, right a tail by itself doesn't work You need the body and the head Okay, so anything in media the thing is that many people know only few things So until that changes you got to have the whole monster. You got to have the whole dog not just the tail the long tail is real As amazon has proven but if amazon only sold unknown books, nobody would go there So this is the time that we're in this convergence between the broadcast world, which is all about hits You know american idol x-factor, whatever it's all about large things and then the broadband world, which is about niches Okay, the thing is however if you start today and you say i'm going to start a website where we have all unknown musicians Unknown writers unknown filmmakers, right? You don't get to build the audience in the same way You need to have larger platforms. So this is why youtube and facebook are important Uh use in particular. I don't have an update on that, but I think that's one of their problems another question Okay, come on get to it people. This is your chance first frank and then I get to you, right? I can ask you to get a question that I asked him yesterday also, but I was trying to answer them So okay probably didn't hear the answer now There's so much content that's created and you say that curation will become enormously important But what's the value of the content that we create because we take pictures today? We twitter it and tomorrow nobody's looking at it again Yeah, that's a good question. I mean First you have to define what content is right and today what what content is is you may make a movie Then you have a million people comment on it right and those comments and ratings become content as well Right. They're essentially the same sort of level that called meta content, right? So you have content about content and that becomes key in finding it or actually spending attention on it It's a recommendation like youtube 75 percent of youtube traffic comes from links And people send links to each other You don't see posters by the side of the road saying watch videos on youtube, right? That's not needed. So that's that's how they drive it the value of content I think ultimately of course because of the noise What's really good is more important than ever before It's not the noisiest. That's the most important. I think basically It's Darwinism you could say Right. It's survival of the best or the you know, not the noisiest I think what we're seeing now and this is going to get much much worse I mean three billion people are coming online in the next five years Africans, Chinese, Indians, Indonesians, Brazilians and they're all publishing stuff as well So here's a key question. Are you going to listen to 60 million songs? Or you want one of your facebook friends to tell you about a cool band in brazil That's the mechanism of recommendation curation. That's where the money is The money isn't in getting 60 million songs, but six songs And this is also I think to be one of those six songs. That's the challenge To create your own network, but Seth golden has written a great book about this called tribes It's all about tribes Okay If you're in a band of you an author or if you're a programmer or whatever you are if you're creating stuff You need a tribe that says i'm for this and the tribe. It's usually 150 people When you have this tribe, they will talk and tell their tribe members and it spreads like this That's how you get things done, right? That's the human effect and that doesn't change on the web You can't have a tribe of 1.5 million It has to be human tribe We have time for more two more questions. I think one over here You can also tell us who you are if you like I'm john There are now 700 million facebook users and a couple more people on the planet And do you think they get isolated from the world of because the advertisements are Only focusing on the social networks and Yeah Yeah, I mean, of course that there is a danger in uh In a seclusion, you know because we're only connecting to friends and we don't pay attention to those that are not friends Right that is a potential problem. However If you looked at the past of mass media, are we talking about lies and deception, right? That's what we've had with television, right? I mean clearly The most deceptive and lying medium we've ever had was television. Basically. I look at the weapons of mass destruction Right that we were all thought were real. Everybody else did too on the web. This can't happen So the benefit on the web is basically it's going to be almost impossible to lie about the most single small thing Right because basically all it takes is just to look it up I mean if there's a thousand people looking up whether that's correct or not within two seconds You know, it's not true. I mean if I told you I'll play with the rolling stones It doesn't take too long for you to look this up Apart from the fact that you already knew this, right? But now it's basically becoming impossible to lie on the web which is a benefit of the web But I agree with you that there is a danger in the sort of club mentality That we may encounter on on facebook But having said that I think we're still only at the very beginning of this process, right? As I was saying earlier my sort of top meme is this idea from the broadcast to the broadband Okay in a broadband world. We are all a lot more responsible We have to be responsible We can go on facebook And get ourselves fired Not a problem. We can just tweet and get fired. We can do all these things then and get sued and fired We have to learn this right basically the internet is like nuclear power probably look like how power is worse, but We have to learn how to deal with this power that we have now And this is we're all in the very beginning of this that the whole debate about privacy. It's the same same question We're now public by default And if we don't want to be public, we have to become private again. We have to do something So this is the key factor I think with all these things is that if we don't take this responsibility seriously Then we can get into deep trouble Last question. I think last question. Sorry Hi, my name is sir and I was wondering What you think where the cloud will physically Up there now. Yeah. Yeah, where it will be. Yeah That's a good question. You know the I think basically what you're seeing right now is that there is Sort of 10 or so companies who are competing to be that depository of the cloud, right? It's a little bit like FedEx UPS and and and all those companies that deliver things, right? They're competing and hopefully by competition will have them actually stay straight as well But cloud computing is a long way from reality in that same sense, right? Because keep in mind that If the connection doesn't work, then you're without anything All right So today if you're on the air on the airplane, you want to listen to Spotify Obviously, it doesn't work unless you've downloaded what you want to listen to right you have to be prepared But this frame is closing in about 10 years, right? So basically at that point will be online no matter where every time even in Africa even somewhere else even underwater Right, so that's a question of time right the cloud computing has several issues there that we can't get into here But that's sort of where it's going the most important part about cloud computing is however Is the control of the medium that's changing So cloud computing means that we as the user control what happens with our content rather than The depository controlling what we can do right in a physical medium That's all we have time for what a shame um, thank you so much audience, please keep a look out for the future agency and also developments on the um future talks by Gert Leonhardt obviously follow on twitter and um Yes, of course Should you forget get will be here until about half past four He'll do another session, but he'll be able to walk around and answer your questions during lunch or during the afternoon So he won't be going away right now. Okay. Thank you. Hope thank you thank you and to Oh, I don't need this one to encourage him to do so And answer your questions. I would just very very quickly like you to if you have Heard anything in this talk or learned anything that you didn't know before and that it was worth getting out of bed This morning for and coming here. Just quickly stand up If you've learned something or heard something interesting Well, there you go. This is how you get a standing ovation. Thank you. Thank you so much