 Filmmaking also is about two things. One is about storytelling and the other one is about the audience. We'll make it really simple because both of those things have been completely impacted by technology and the internet and the changing behavior that this has brought. So both the storytelling is changing, technology is changing and of course the audience, the users are changing. So Martin McLuhan, who's the original futurist, really by a guy who studied media, he said it's a framework that changes not the picture. So if we're looking at the future of cinema, the future of films, we can't talk about having a Facebook page or distributing on Twitter or using YouTube. Those are just pictures. Those are just tiny pieces. We have to look a little bit larger because that's what's going to be important. Basically what we're seeing right now with the iPad and other devices, do you guys know the iPad? Yes? Who has an iPad? I have an iPad, sorry. So not to promote the iPad, but it shows in fact I don't want to promote the iPad at all. It's too expensive. But what it does, it has given us an interface revolution. An interface is how we use machines. So we're looking at the example here of wire magazine. Now there's 27 companies, electronic companies, that make devices that are building iPads. The iPad is, I don't know, 800 frames or something. I live in Basel by the way, just to forget to say, I don't live in America. I'm not very far. But the iPad is about 800 frames, but you'll have devices made by Samsung and by Dell. Some of them will cost $50. Very cheap, especially in Asia, devices that do this. The big difference is that you can touch it and it does something. You don't have to be a computer person. In fact, these aren't computers. They're just the devices where you can read and browse and watch. This is the important part. The amount of stuff that people have watched on the iPad has already been for the last six weeks that they've sold 3 million of these. And sometimes about 20% of the entire traffic in America is taken up by the iPad. Internet traffic. So those people are consuming, showing, using media. They're buying stuff too. And they're also producing on this, which I'll show you shortly. So this is a big change in terms of interface. I'm going to give one to my mother, who's 75 years old. The neighbor has internet connection and I would anticipate that she's going to watch television and movies on the iPad rather than in bed, for example, rather than in the living room. It's laid out. This is a service called Netflix. Anybody know Netflix? In America's fantastic service is $10 a month. You can order as many DVDs as you want and they rotate. So you can always have one DVD and then the next one. And now Netflix is giving you free streaming on demand stream of all of the films when you're subscribed. If you know the trick, you can get it from here too. But right now it's not available officially in Switzerland. It's $10 a month now. But it's fantastic service and what Netflix has done is putting the Netflix service onto the iPad. You're going to see the future. The future will be to do this kind of thing, but we don't pay. That's even better. Why won't we pay? Because there'll be so many appetizers and brands and companies like Swisscom and others who want to reach us and give us extra services that this will be bundled. We'll actually get a lot of these services for free and prevent a simple payment. Paying with attention. It's laid out exactly like you would stream Netflix from your home computer with the ability to cycle through... There we go. With the ability to cycle through all of the... 22 million subscribers in America to watch. So the greatest test I think for this kind of application and how well it streams is to play... Not a very good review of the guy's kind of board. Which I already started just to test it out before I had it. Yes, you should have. But in any case, so this shows it's basically the idea of a jukebox, a cinema in the sky. And that is the idea that we're going to have. This is the idea that we have, of course, 10 years ago at the beginning of the internet. Didn't quite work out, for example, in music, mp3.com. And if any of you are into music, you may know a service called Pandora. Pandora is a music service that has currently 42 million subscribers. Where you type the name of an artist and it will make a playlist based on the artist and the keywords. It's free. 42 million subscribers. So you can anticipate the future of everything that we do. Music, films, box, banking, education is moving into the cloud. It's moving into the sky. This will be a fantastic development both for us as creators and as users. For the industry, it won't be quite as easy. Because as you can imagine what happens here is it's easy to connect. I was saying earlier when you're filmmaker it's about the story and it's about the audience. Everything in the middle is going to be redone. That's what we're seeing right now. We're seeing this shift. You know, we used to think of the internet as being for geeks and freaks and, you know, Americans. Well, not that that's the same thing really. But anyway, so about computers. It's a lot of computers. But this box here isn't going to be the way that people watch movies, right? Not in Brazil, India, Russia, China, Europe, you know, wherever. I mean, this is a work machine. It isn't about work. So that won't work. It will be all moving to mobile devices. I don't know if you know these numbers, right? But there's about 2 billion people connected to the internet. Maybe about 600 million are actually on fast internet so they can do this. But there's 4.1 billion people on mobile phones. Here in our neighbor, Italy, right? 145% penetrations. That means people have two phones. So you can bet how these people are going to watch movies. They may not watch it always on the phone because it's obviously very small. But the phone is the control. The control for what they like, what they save, what they use, how they pay. They may transfer it later, which I'll talk about. But basically this is going to happen. The internet is moving into mobile devices. Switzerland, for example, is the world's most expensive country for phone calls and data. That's because we're all, you know, we're not so adverse to paying yet. You know, there's still a bit more money. So what's happening around the world in Indonesia, for example, where I have some clients, beautiful place, the cheapest phone calls in the world are in Indonesia, in India. So now you're going to see people in Indonesia, 280 million people. They're all getting wireless internet. So they did not have radio before. They did not have television before at some of those islands. Now they can go online and watch YouTube. Not very soon. Maybe they'll watch your stuff, right? It brings us back to the audience. So the big deal is in mobile devices, that's where it all starts. It's the idea of saying, okay, they're personal. They're always on. They're social. We can share stuff, location aware. There has been a study in China showing that the average person, about 75% of the average people, don't have a mobile phone more than one meter away. So in 65% of people have said they would never borrow a mobile phone to somebody else, their mobile phone. So the mobile phone is becoming a very powerful mechanism. Not so much for the watching, which is getting better, but yeah, it's small, obviously. But in Korea, for example, you have people projecting from the mobile phone, you know, you have kids in the subway projecting to the wall from the phone. So like, I'm sure you've seen kids in the subway play music, which sounds terrible, too. But now they're sitting around in the subway projecting onto the wall having a screening of a movie. And this is, I mean, projectors now that you can connect a projector to the iPhone to $100 for the projector. So that technology is coming very quickly. Then we're seeing this trend around the world as people are saying, well, if I want to watch a movie, I'm going to use whatever screen is available. So if I'm in the car, I use the screen in the seat. On the mobile phone, I use the mobile screen. I use my wristwatch, my eyeglasses, television, whatever is there. And that is a trend that we're going to see. People say, well, I don't really care whatever is the best thing I have at this moment. But they want to make sure that they have all of their content available, all of their movies. So they don't care so much about the screen. They care much more about the content. A lot has been said about 3D. I'm sure you're interested in 3D. I saw almost all of the 3D movies because my kids forced me. I think it's pretty cool, but I don't see the big difference here in terms of the mechanics or so. It's one of those things where we've gotten the message from Hollywood that we should all love 3D and pay more. But I'm not so sure. So I think it's a trend that's clearly going towards digital theater, better sound, 3D, all the extra stuff. But does it make a fundamental difference? I'm not sure. I think this makes a fundamental difference. That people use the mobile phone to find movies. People find using the mobile phone to search among their friends on Facebook, see which movies they like. Anybody here on Twitter? Twitter? It's okay. It's not bad. Twitter is a service, for example, where you can find all of my movies, my books, my music on Twitter. I've connected to all the people that I like, and I know there's at least 50 people who are absolute experts in movies, and I find all my movies there. I find it through what's called a tribe, right? The tribe of people that I'm connecting with. I find all my stuff there. I don't need TV guide or whatever we have here, right? To find movies or watch television. So the mobile phone has quickly become the universal remote controller. If you actually have your contacts here, right? Maybe do the banking over this. You buy your bus tickets. Pretty soon you can buy a cove or pay for parking. You also connect with your friends and they tell you where they are, so you can push a button and see them on the map. You know, Foursquare and those kind of things. So what we have here is clearly the development towards mobile becoming the remote control for people's lives. And now we have the iPhone 4, another Apple expensive Apple product. But it's interesting what happens now has been out for two weeks and we already have movies made with the iPhone. And here's a movie called Apple of My Eye. I mean, for a mobile phone this is pretty amazing. It's not too far afresh to think that what's happening here is not, we're not just changing the consumption, you know, how we, we also change in production. And that's been clear for a long time. Now of course the tools don't make you a movie, right? But see how they made this movie, it's quite interesting. Now this is a shot from how they made the movie. Look at the camera. That's your camera. We're getting to the reaction. And you can do the editing on the iPhone. It's taking me a little bit. If I want to get there. So a lot of people are saying this is really terrible because there's more and more and more movies all the time. Just like there's more and more music all the time because we have computers, right? I don't agree. I think when we have all these things happening, people are producing, first of all, they will love your movie much more because they know how much work it is. And they know how much time and work and effort goes into making a good movie when they've made their own. They also realize, for example, when you talk or when you make a movie, that you are underwriter. You're just not good enough. So it makes you realize if you make your own movie it doesn't mean you're going to be the next big producer. It just means you have more appreciation for the real work. So to me that's not a problem. I think that it's actually a very good development because if people are interested in movies that make their own movies, they'll be sure to show up at one of your movies one of these days because they think that they should see the real thing. So I do a lot of work on the internet, right? But clearly the internet isn't going to save in parenthesis, as from all the evils. It isn't going to solve the problems that we have. I used to be a musician. I made 20 records, I wrote four books. The problem for all creative work is the same. We need to find the audience and to build the audience and then they have to buy something from us so we have to get some money out. So we have to also develop stories which is a different story. But if we want to make a living we have to have a big audience as big as possible we have a good small audience we have to groom them we have to have trust from the audience and then we have to turn them into money. So the internet isn't changing this the internet makes it easier for us to build the audience. That's the most powerful part of the internet. We can team up with people we can find people they can find us we can make more noise if we want to we can be found out. The bad thing about the internet of course is for one thing we can't lie. It's the most impossible to lie. Because if people find out if I put on the internet that I played a gig with the Rolling Stones it would take you 2 seconds to figure out how I'd lie. If I told you I made a fantastic movie and I put it on black for YouTube and you watched 5 seconds of this total shit and you would lie. You know I lied. It's very easy to find out if it's real loud. If you're on LinkedIn or Facebook or Zing you can pretty much tell what I do takes about 20 seconds. It's very difficult to say that I'm good but I'm not on the internet. So yes people are lying very successfully on the internet of course schemes and those kind of things but for the average person it's pretty hard. So the internet is not a rose garden it's not that magic watch you forget that but it's basically fundamentally leavening the playing field. That's true for music, for films for writing. Leavening the playing field means you have access to the market. Because guess what you don't need major TV distribution it would be nice to have it of course you don't need what you used to need to get anywhere. When I was in position I made a 20 record as I said before. You did not have a career without a studio with Sony, Warner, EMI or Universal. It just didn't happen. Today has changed it's not entirely different but it has changed to some degree you can go direct and I'll have a few slides on how that works today. 10 years ago in television cable the studio and the networks ruled this is what our parents were used to made very straightforward mass media on the internet the users and their amplifiers ruled at least in theory we feel a lot more empowered on the internet than we talk about cable television you can't go to cable television and say I want to see the Sundance channel now you can do that on the internet you can go to tech.com and see speeches you can go to thousands of on demand channels on the web, forward TV and many other things but look what's happening on the web already the giants of content the big studios if people are watching video on the internet what do they watch? check it out here CBS, Toyota, Viacom, Fox 1% and less of the total audience is by these people people are watching almost 37% YouTube and Google about 75 videos out of which many of course are copies of those but it's about 70% of the material on YouTube that's not taken from any of these guys it's our stuff I of course have many videos and in the air we get there's hundreds of thousands of people publishing the problem is of course we don't know how to get paid from YouTube it's a big point but in terms of the audience all of a sudden the audience online is different because they have the choice when you go to a movie theater in many cases you don't get to choose what place I mean it's just a program obviously when you have cable TV you don't get to choose what place they choose what place you can record it on the internet this is where Google is starting Google TV was announced two weeks ago Google TV allows you to sit in a living room and browse the entire web in one box from Google where you can find every filmmaker every movie, every short, archived, rated index most of it for free or subscribe for example for the networks like Google and Netflix so in this world we're not better off because most of us are not the stars and the hits I mean that's the reality of production most of us are not famous producers actors, musicians because if you are really successful then you just find down here the CBS and whatever you've got but 99.5% of people who produce interesting stuff they don't get to be hit so we're not better off here the question of how we return the money of course is a question we should talk about a little bit later so in a way it's like this I mean the a lot of the major television producers and film companies which are my clients to large degree all over the world that's what they do, they're happily surfing and there's a hurricane coming they know it's coming but they like to surf so they continue what they've always done and this hurricane is mobile, social cheap and fast than internet access internet will become so cheap that many of us in 2 or 3 years won't even know whether online or offline it'll be a mental mistake just a mental switch not a technology switch so that means watching movies anywhere you want on the go in the car, in the subway as you can already do that that's basically already happening around the world this will change a lot of things this is one thing that will change some of you may have written the book called The Long Tail or read the book called The Long Tail so this is one of the simple points that we're seeing because of what I call the internet culture broadband culture which is not pretty much the culture anyway this used to be the deal if you made a movie, you did not have distribution nobody would find you just like a record you make a record, you don't know the story you're dead you can sell it on your gig so nobody wants your movie then you just would never show up here so this is no longer the problem because all of a sudden we have movies everywhere all-demand services, free stuff edits on YouTube all kinds of things, websites HTML5, whatever you have I mean it's basically exploding now our problem is no longer distribution, our problem is attention the real problem for creative people that make things is attention that's the main problem money so don't be fooled by discussions about people not wanting to pay on the internet, that's of course not true there's about 2 billion dollars a year spent on dating on the internet finding women things, men dating, 2 billion there's 6 billion dollars spent a year on virtual goods, sending flowers to Facebook a tractor on Farmville 6 billion dollars people are spending money like crazy on the internet so the question isn't about us getting their money that can be a problem of course but the problem is really to get and keep and convert the attention I think all of you know if you ever played a band if you don't have a gig with an audience you just don't exist if you can't fill the room with people you're not going to sell your records the first thing to do is to get attention and that on the internet can be pretty tough because there's so much noise and there's so many things and so that's one of the things I want to talk about as well what's happening today in today's world, especially here in Switzerland Switzerland by the way is number 4 worldwide in the level of technology that's being used number 4 so it's very technologized at the same time we have very traditional habits in Switzerland as I'm sure you're aware of as well so we have both so it used to be your parents maybe they look like this whatever I can get so if you want to watch Kodjak and now you watch at 8.15 that's what you get you can't watch at 10 it's whatever you can get 5 years ago my kids were downloaded from the internet whatever movie was the first top 10 on Victoria or the first 1000 songs online by just download all of them whatever they can get they wouldn't even know who the people are or the movie, just download it this has completely changed people don't even download and steal your movies anymore if you don't get their attention it goes like this it's basically a funnel exactly what, how and where I want this is basically what's happening now in media is that everybody is switching to this I want to know exactly my friends have told me about this cool movie from Switzerland, where do I get it where can I see it how do I find out more and this will be a drastic shift to what I call fragment patients why in the world what we watch we show on Swiss television if we weren't 100% interested well 5 years ago there was nothing else to watch I would have to pick from one of the channels today in my living room we've got 8 options of watching all different options of doing and this is going to become a standard so unless you're a hit producer or Mark Foster or any of those people this is good for you audience won't have a chance so the reality check of course is I want to give you a reality check because the internet again doesn't fix these problems the reality check is we need both we need to have a large scale networks a large distribution if we can get it and the network we need both if you have a crack at selling a movie to a major distribution you should probably do it I've done it with 2 of my books one was the best seller and was great but with my third book I've downloaded over 1 million free copies and I've made about $10,000 from donations which is more than with my first book with a publisher that supposedly paid me for the best seller so it all depends I'm not saying it's either or it's probably not but if you can't get a major studio to be interested in releasing your film you can go to the network you can get attention on the web and this is a really good way of doing this a lot of people are really worried about this film maker is going direct I want to give you some examples of what's happening around the world because I want to encourage you to check it out see what's happening around the world and by the way because I'm not a film expert I used a guy called Brian Newman that you may know he runs a company called Springboard Films and he gave me some good advice for you you guys know this tab.com is a conference and they publish all the smart videos of those people that spoke they are all the best videos tab.com is now the biggest site, the biggest distributor of this kind of video in the world 150 million views of these videos tab.com is a conference and not even a TV channel they're not a producer they're conferences they are now the biggest provider of these kind of talks inspirational speeches presentations in the world so all of a sudden these people have an audience if you're successful they can get 500,000 views of your presentation and your pitch so going direct is becoming a real option now here's a company called Naked Wines if you're into wine you'll love this one you can go to NakedWines.com and say I'm interested in sponsoring a winemaker there's 27 winemakers I think around the world you can give 100 pounds to them and they'll make the wine and you'll be the first to get the new bottle so you actually fund the creation of the wine before they make it you develop a personal relationship with a very successful company it's exploding right now so you get to buy the wine for 30 euros or so rather than 100 because you're an investor so this is like winemakers going direct so rather than going to the bank to get the money to make the wine they go to Naked Wines and they raise the money for production crowd control have you seen this? crowd control is a place where you can say I made a movie you publish a preview of the movie if you want people say where they want to see the movie so they can use this tool as a Google Maps tool an API to actually say I've pressed the movie to be shown in real or wherever it is and then if there's enough then you can figure out a schedule for screenings based on this technology tool so this saves the trouble of figuring out where to go for screenings here's a cell called Kickstarter Kickstarter raises money for films we haven't seen it yet check it out and it works didn't work so well with music it's called Celebate but Kickstarter allows you to put a clip online in the description and raise money from your fans so it's called crowd funding it's basically if you have an audience that likes your movies they can contribute funds here like this movie about the Lorian Lorian hovercraft has 82 investors and has $2,000 raised and that's obviously not the whole upfront movie it's still very early but now because of the internet I mean look at the simple fact for example Facebook you guys on Facebook I'm sure I'm G. Leonhardt by the way if you want to connect let me know you're coming from this I know who you are so on Facebook 10.5 billion minutes a day if you have a fan on Facebook every 10th person in Switzerland is on Facebook imagine what would happen if you take your Facebook friends and you would say go to this website I need 50 friends from you to make my next movie if you have that many fans if they are really like you if you've gotten their attention you can raise some money in many cases it doesn't work because your audience isn't big enough there are possibilities of the web here quite some so it's still very early obviously we need more time in the bigger audience to do this and we thought about this at the late 90s but it's finally happening right now Google is putting out satellites with a company called OVB the other 3 billion they're putting out satellites all over the world to provide free internet access for people in Brazil, Russia, India and China roughly 3 billion people and they're going out now and the last one will be deployed at the end of the year so as of next year a lot of these people will have free internet access maybe you can get some of those 3 billion people interested in your movie using the internet maybe you can even get them to pay in some sort of way to pay not just with money and basically what we see here is that because diversity goes up control goes down this is one of the things that we have to face on the internet we can't build an audience and completely control it it's like going to somebody's house for dinner and saying I do not want you to cook this basically what happens on the web you have to give something to get something that's really always been true but on the web it's extreme 4 so giving up some control and giving away stuff that is the most powerful mechanism on the web that I should talk about and before I talk about that we have a lot of debate in Europe about piracy not so much in Switzerland really but we do have some of that here too so don't be fooled for the most part piracy is just market failure and if I am downloading music for free why am I doing this because I want to screw the artists maybe I want to screw the labels I will understand that but what is the motivation behind it motivation most of the time is I can't get it anywhere else I don't like the price I don't like the service I don't like the deal if I go to iTunes here in Switzerland I am looking to rent a movie what happens 9 out of 10 not available in Switzerland who makes those rules forcing us to go somewhere else to buy the movie so basically what's happening most we have demand in the market people are downloading getting things for free from books to music to movies because it's not being served in a way that the user wants 95% of people around the world if you talk to them about stealing music you know what they say I'd be happy to pay if I could if the deal was right if the money was right if I could afford it if it was done in a way that works so that makes a big difference I spoke with this event in 2008 in Austria and really what's shaping up now is a new cultural economy it's a new logic it's a new way of how we come up with ideas about how we get paid this is your big chance as a producer if you're a creator this the chance is not to say well everybody who downloads for free is a criminal so anyway the good news here is that we found out there's been lots of research about this on the internet which roughly about I would say realistically speaking about maybe one billion people who have enough bandwidth the views are completely different the habits of what people watch are completely different than cable television or cinema or mainstream productions basically what's happening is for example on Facebook last month 150 billion videos watched on Facebook if you haven't published a movie on Facebook you make a big mistake because that's the audience again as I was saying earlier it's not about asking them to pay it's about building your audience that they will eventually be able to make a payment in some sort of way because online viewers are so different they have of course a bit of fat which is good for the most of us that the niches are gaining the stuff that's less for the masses actually rises and that's simply because think of restaurants 20 years ago if you go to London all you could eat was fish and chips and pizza maybe a quick place and so you would go and have pizza today in London and every possible choice in the university will you still eat pizza most people will not you can still go have pizza sometimes but you'll diversify we have completely fragmented so in London it has result in a very active scene of wanting to be different not always going for the same if you look at travel what's happening in the travel business the red line is the line that says I'm going everywhere else but the main destinations you know Bali Thailand whatever people are completely diversifying if you look at this track because on the web they can find out they can try stuff same is true for motion pictures here's for example what kind of online video have you watched last month the red line, 2008 unfortunately a little bit old but it says 64% of people have watched the user made videos not the mainstream stuff that's what news for us because that's how we have a chance to get watched by people there's a store called Etsy that sells only handmade products last year they sold 250 million dollars worth of stuff like gloves and you know people make my hand and sell through Etsy complete niche stuff so this is the future we're all the same of all the different so we're no longer going to be forced to necessarily watch what we don't want to watch we'll have more options which means that in the end if you're a producer that produces just this you know horror movies or whatever you have a chance as well so it all sounds really good but of course then there's the question how do you turn that into a living so basically in this sort of system this is the most important part having a try having a connection of people who support what you do so people who talk about this stuff people who sent the link on I would say that probably most people in this room have sent a link from a youtube video everybody here if you use youtube you'll see a video you like what you do send this to my friends 78% of all the entire traffic of youtube is like this it's not people making ads saying watch youtube it's us sending the links that's how this works that's how you build the audience so when you build the audience then you can do this you know create a network of people who will support what you do now let's talk about money not that I'm expert in money but okay in three years you'll be able to pay with facebook you think it's funny yeah I think it's funny as well but facebook will offer a way for us to make money you know how they will do this they will generate money by people who like other people's stuff on facebook today when you go to facebook you click a button that says I like you've seen the button it's everywhere on the internet now this button generates criticality reputation so when you come to my website and you only see two lights buttons and you're like this guy is very popular that may be a technical problem but when you see the light button goes up you have a bit of a rating like ebay so you can see people have light so I bet you money when you come to a website where there's lots of movies and you can watch the movie websites to watch you're going to click the one first that has the highest rating the biggest thumbs up the biggest twitter followers all these things right so facebook is creating a currency to wear out of the popularity that you have for your movies, for your blog posts for your pictures, for your videos people will put money into a pot for example it's not too far fetch to say I'm going to give facebook 10 Swiss francs a year and I will put the light button every time I hit the light button a piece of my 10 francs depending on how many buttons I hit goes into the pot of that person so we're paying each other through facebook and this system is coming this system allows me to say I'm putting some money in the bank I'm also getting paid lots of people like my presentations about 50 videos on facebook I'm waiting for this so I can buy a new car but I think it will take some time but think about this 550 million people on facebook every 6 minutes in a row is spent on facebook when this goes into play we can say if you like my stuff hit the light button when you hit the light button I get a piece of money stream and I can buy other things on facebook I go to my landlord and say ok take my facebook credits for my production there's a company called Flatter it's doing a similar thing it's a button you put on your website and you can be flattered you can be paid money that people put in the bank and you can pay with a tweet this is of course not real money but paywithatweet.com allows you to say well you're putting up your book anybody who tweets gets a free copy now because we live in Switzerland we shouldn't just be talking about playing money we shouldn't be talking about just dollars or real money because money and getting paid is a whole different thing this is a chart from the Oven which is a great research company today we think about money as this we pay to get this but the future of money is going to be virtual currencies paying with data analyzing and influence I get an email every single day from some company saying would you please tweet about what we do we'll pay you a hundred dollars five hundred dollars a thousand dollars they won't pay me to mention them which I don't do by principle I would probably do it for millions but in principle I don't do this but this becomes a currency the value that you have in your network becomes real money you can raise the money if you want to make a new movie you can use that social capital to raise the money that's going to be a future perspective I think quite interesting so basically what's happening around the web if you don't get this as a US audience the people that are watching online videos are exploding I think of course all of us are doing this so clearly what's happening is that access to content will replace buying a copy in other words DVD purchases are declining you notice I'm sure at least in most countries CD purchases are tanking and CDs and books as well and newspapers what is increasing is everybody wants to go online to do interesting stuff I buy online access to devices, buy subscriptions and of course if you have an iPhone, anybody with an iPhone here if you have an iPhone, you know this you buy those damn applications whatever they are three dollars for this four francs for this you definitely get mine for free but for the most part we're buying these things, we're buying for example the iPhone application that helps you to get divorced that's four dollars like a guy, you know step by step guy people buy the average iPhone user buys four dollars of stuff a month so when we think about selling our movies can we sell them on iPhone, I think we can if we have enough of an audience maybe you buy yourself of course that may be hard but together in a group in a channel like Netflix that sounds reasonable to me what's happening here is once we have the attention we have to really think about it is no longer the copy that's so valuable it's all the other stuff the timing, the attention, the relevance the context, all the other stuff people pay for this they're paying for you to say this is authentic this was released yesterday this is a special edition this is the perceived value that your movie has what your production is so we live in this world of course you all of us know this it used to be 5 TV stations now we've got 50 on cable maybe 100 and we've got another 250,000 on the internet so very soon every possible channel you want to see about erotic massages you can watch it all day long you can see about motorcycle fixing all day long we'll be there so the question is when there's so much happening how do you get people to listen to you how do you do that how do you get them to be soft data so a lot of people in the movie industry the NPA and the big studios they think it's a war it's a war for money because when we stop buying in the old way we deflate the model just like the music industry but of course that's not true the real war it's not for money it's for attention that's what we're talking about here so if you want to distribute something if you want to get the stuff to be heard you have to find a way to turn the switch on to have people talking about you spending the world sending out stuff posting comments writing about you on Wikipedia the other day somebody put in the description of what I do on Wikipedia just I don't know why somebody returning the favor because I gave you a book for free or whatever the deal is right give you something back it's all about attention and attention comes from conversation so if you're making a movie if you're in a band, if you're writing a book you have to have a conversation with people that will like it many successful books like The Longtail or Free or others came out of the conversation with people they were actually sort of co-written by people so having a conversation using Twitter or blog, Facebook, YouTube or whatever you're using having a conversation being personal building your tribe I mean if you're a filmmaker or a producer you have to have a tribe a tribe of people who support what you do that are interested that help you, that may donate money that may connect you with others may that's basically what it's all about when you give something for example now on Flickr you guys know Flickr right I'm sure and Flickr is most amazing place for photos and finding stuff basically now every band, every writer every author, every filmmaker publishing whole series of shots on the web to see how this movie was made to see the background to see the crew, people want to see this if you're making a movie you're not using Flickr to publish stuff you're missing a big audience because when the audience sees what it looks like behind the scenes they develop some trust they basically get involved Kevin Kelly who founded Wired Magazine he says wherever attention flows money will follow and this is not some California bullshit a lot of people are saying this is just it's a tale it's not true it's actually very capitalist because the reverse is also true no attention, no money and it's very hard to get attention these days so you should place a lot of attention on getting attention and then think about the conversion part of that means is a lot of conversation many of you may know the musician John Mayer rock musician slightly more successful than I was even though he's also a guitar player he has 3.2 million followers on Twitter 3.2 million people are tracking what he's doing on Twitter most amazing story there that's how he gets attention on being open otherwise we'll be here tomorrow morning so here's some people you may know if you're not twittering as a filmmaker do it now this is how you create a huge channel of flow of people who are interested every day I discover an other interesting person on twitter and maybe they discover me this is a process that's basically like micro blogging and publishing things Ted Hope great producer has a twitter channel has a twitter channel and believe it or not you can send messages to those people and they respond maybe not David though somebody else you can actually find people you send a message saying hey I'm going to be in LA you want to have coffee maybe not David again but other people I don't know who he is David Wayne and you guys know him Robert R.D.Z and here's myself so basically twitter allows you to build this channel to fish where the fish are the fish today are your audience it's all over the web if you're not using this you might be missing a big opportunity there also for developing stories people actually send you stuff and say hey how about this this will be your topic we're attaching an image or showing you a location this stuff happens all the time so social network in the north and this is a huge vehicle of distribution opportunity they are the new distributors these people are the people who are going to say watch this movie you can download it here or free or paid or part of the service or whatever sending a link but what people do is to say to all of their friends you've got to see this movie by sending a link or a tweet or a drop post or a facebook there's a connection that we've had in the movie industry with the audience that we have to recollect this very important part I'm going to take some short questions very soon so let me just wrap this up and you guys can prepare for questions in English or German or whatever you have unfortunately time rules are short so what we can learn from twitter even if you don't like tweeting if you don't like the noise or the time wasting anywhere that's the nature of the whole thing what's happening on twitter is that the paradigm of following that's a very powerful tool if you're in this business you don't want people to buy it from you you want them to become addicted addicted to what you're doing what you're saying, what you're creating what you're selling because they will always give you money it's a drug model basically so from pushing to pulling the most successful blog has beaten the traffic of CNN with this model with a follow shit model so that's the model how he generated income last year I think they made over $100 million in revenues and they have 40 people so this whole debate of free versus paid it's a bit of artificial debate because bottom line is I work with a guy called Mike Masnick from TechDirt that's what he says about how to get paid connect with fans give them reason to buy that's how to get paid that's all there is to it if you don't connect with your audience and other people who may like what you do you'll never get paid you can't ask people to pay that don't know you it's the first step is connect with the fans and give them reason to buy so this graph also shows quite nicely now a fan is a person who does this that's first and the consumer says don't confuse the order a person who buys something as a customer is not the same as a fan you need lots of these first Kevin Kelly has spoken about this he says a thousand fans if you have a thousand true fans and I would say it probably started about $150 because $150 is what we traditionally call the tribe the number of people that are close to you so if you have 150 people who support what you do regardless of what it is and then even enlarge that to a thousand fans then this model becomes a model to wave in Bangkok a thousand true fans get ready for your questions if I haven't answered all of your questions already okay two minutes and we'll get a question that was important in what I call film 2.0 the future of filmmaking and cinema that's really fine but it's important the content what you do is not everything that matters it's very important but it's not everything in the old movie industry we thought okay we make a movie we try to get distribution we sell it, we license it content is everything and that's still true and it's also about the community it's about how people forward, how they share how much they comment how much they tell others how many remixes they make of your movie how many parodies they make from your movie how they spread the word that increases the value if you have no community you have great content, you're still dead today the biggest community drives content and vice versa and then of course you have connectivity right place, right device maybe on the mobile phone maybe on the iPad by creating an easy way and this goes for paying too if you're looking over on the website and you say okay download my movie it's The Three Sisters Friends that won't work that won't work for most people because you don't have this you don't have this I mean to pay three friends to you what do I have to do to pay three friends to call the band for it's complicated and I don't know who you are so this is why it doesn't work but if you're part of a channel like Netflix and there's 40, 50, 100 million people subscribing to the channel and you get some placement because the community says this is a great movie from Switzerland in Netflix then the payment is already there so that's something to think about how you get paid and how you work out the mechanism okay so a question good question Twitter is a lot like Google Twitter was created because it was in need the need was to have short conversations and later in initially was the idea of what are you doing but to share things like a blog when you do a blog post you find a story other people can read it on Twitter it's instant the way the network of people who are sharing things the best thing on Twitter to do is really quite simple you pick a topic you pick for example the topic of your movie let's say tribes ends above it whatever the story is you Twitter about that you become an expert in that conversation on my Twitter feed which is G. Leonhard I only talk about the future of content technology all the stuff I talk about about kids or what I'm drinking I have other channels for that I have several Twitter accounts so you make a brand because people are really interested in a quick fix on Twitter and when they like your quick fixes then they go deeper my blog traffic has increased the last 3 years by almost 1000% entirely because of Twitter because what happens on Twitter I don't mind saying the future of radio or something and they find it interesting they click to my website from the website they click to my TV channel which is called Gertube by YouTube Gertube.net is my TV channel they click on the TV channel and then from there they click to iTunes to download the whole 200 hours and what happens after that we have to talk to Gert to come to speak to us about something so most of my work is think tanks and workshops and so on that's how it works so on Twitter it's best to find a format a persona and I would say most people are very specific about what they write about they write about what they do their skills or their topic the next movie of course if you're already a VIP like David Lynch you can write about anything you have on 1000 followers but that's very important so in a way this is why I put up this image when you said Twitter in a way the people who are doing this on Twitter they have so much power now there's companies now going to Twitter and before they meet you to distribute your movie or talk about your next production they go to Twitter search.twitter.com to see if people are talking about you in real time I've been at meetings when I was about doing something together a creative project where they go to the search engine on Twitter and they look to see if you're mentioned if you're not mentioned then I would just say because you don't have an audience so it's a little bit like it's like Google on that level and how Twitter makes money well with 150 million people using it how Twitter makes money there will be many ways they can make money it's exactly like Google I mean Google is discovering that they can put those tiny boxes called AdWords they discovered that by accident somebody sent me an email today it's 2.7 billion dollars a month from the AdWords I'm running ads on AdWords so 2.7 billion a month from this discovery so you can bet that Twitter will make a boatload of money when they discover what they can do there same goes for Facebook I mean the Facebook audience is the biggest broadcaster in the world bigger than the BBC bigger than CNN, HBO whatever it's the biggest broadcaster in the world so it's the biggest place to potentially distribute your movies so I think in the next 2 or 3 years we'll probably see a combination of Facebook and Netflix so you'll use your money from Facebook to pay and you'll get television built into Facebook so those kind of things will be great for us because for the first time we'll have a big global distribution channel the only battle as I was saying earlier the real battle is about getting attention and having a good story if your story sucks it will be a little obvious that's what happens in the web so I have a focus on those two things if you're into creating a career on those good stories and the quality of what you do and of course generating the attention keeping the attention and building the audience I think we have to close very soon so if I have one more question or two more questions, anyone? No? Yes? Is there a way that we can put a dollar value behind our social network and say that for everyone that thinks I'm cool can I tell an investor 100,000 people think I'm cool hence I'm more at $100,000 Absolutely and I have a slide for that too Can you give us a quote on that? Yes I can but of course it's a bit of an art basically it's seen at Starbucks for example and Starbucks makes a great example here Starbucks has 7.7 million Facebook users now they have, I mean friends Facebook friends, I hate Starbucks coffee let's be clear about that, it's terrible coffee but I use Starbucks all the time in my trip because they have what for so it's not about the coffee you realize Starbucks is not about the coffee it's about everything but the coffee that's true they built a fantastic brand and the coffee is just where it starts so anyway 7.7 million people on Facebook connected to Starbucks, it turns out they spent an average of $159 more than people who are not friends on Facebook that means people who are connected to the brand actually spend money in the store buying coffee a lot more than those who are not so it's now becoming pretty much a proof among big brands and companies and people that if you have friends Facebook followers or friends or Twitter followers they come worth money in the bank you have to figure out the formula of calculations with Starbucks it's easy because you know where they are they show up in the Starbucks card with us when you create things on Facebook you can figure out pretty much for example what I do is if I have a new book I send a message to everyone and 8% click on the message and 2% buy that's my money value if you want to see it this way but it's a little bit difficult because sometimes you don't know if you've asked the wrong question or you've given them the wrong link or they couldn't pay because we're in Afghanistan there's lots of reasons for this but clearly every single follower or friend that you have on social networks is money in the bank but of course that goes for the qualified ones so you should be a little bit picky about who you're connected with the key on Facebook and Twitter is to be real to be honest and to be real to have that value and not to provide bullshit and that's especially on Twitter because I think it's about 90% of people on Twitter tweet only once and never again so keep that in mind you have to be very real and targeted to actually get it back I think we have to stop now we'll talk further anyway mediafuturist.com is where you download my presentation if you want the free book just tweet on me at gleonard but be sure to follow first otherwise I can't send you the link the link is not coming thanks very much for listening