Workshop 2A: From Innovation to Meeting New Socio-Cultural Requirements Dr Jari Muikku, Digital Media Finland

Topics of the presentation The changes in the traditional value chain of the production of cultural goods and services The changes in the role of the audience Four cases Conclusions

The traditional value chain CREATION  PRODUCT DEVELOPMENT / PACKAGING  PRODUCTION / MANUFACTURING  DISTRIBUTION  MARKETING  CONSUMPTION

The value chain: changes Traditionally a closed and linear system with little active input from audience/consumers The interaction between technology, innovation, and audience has changed the situation For example, the DIY culture in music business in late 1970s – The democratisation of production technology – Cheap and portable technology: c-cassette, Walkman, alternative values The biggest change: internet and mobile devices – Means and level of interaction: new dimensions

What has changed: buzzwords Fragmentation – Traditional demographic segments do not apply any longer: multitude of user motives, values and preferences in consumption Communality – Tribal behaviour patterns, shared stories Interaction – Both horizontal and vertical Crowdsourcing - Active participation in all aspects of the traditional value chain: creation, marketing, and distribution Open source approach – Unformal and dynamic networks No borders – Services and audience participation are no longer limited by country borders: important factor for the socio-cultural cohesion within EU

Case 1: Star Wreck & Iron Sky Star Wreck: a crowdsourcing-based Finnish movie (2005), which has been watched nine million times in internet Production budget €, took seven years Produced by a group of five persons volunteers Iron Sky: a follow-up production with volunteers and – fans Fans help with creative parts (designing space ships), technical parts (making sets), and financing (micro investments) Script by an esteemed Finnish novelist (Johanna Sinisalo), German actors (Udo Kier), music by Laibach (Slovenia) Currently hundreds of crowdsourcing-based movie projects

Case 2: Opera By You A crowdsourcing project launched by the Savonlinna Opera Festival: ”We have the castle and the cast but no opera.” World class singers, 80-piece choir, symphony orchestra + the medieval castle at anybody’s disposal Currently the plot of the libretto is already chosen and is based on the winner among suggestions by the audience: more than 100 inputs Next steps: set, decorations, and music in a similar manner Final libretto and music will be put together by a team professionals based on the results of the project Premier on July 2012

Case 3: Gigswiz Traditional pop/rock live music business: promoters or clubs/venues/festivals book bands for gigs based on their own views Currently live music is a polarized business: few top earners Gigswiz is a Finnish service based on the fans’ direct requests, and the tours are planned according to their requests This information is backed up by localisation information e.g. info on which music has been listened in certain locations Gives the bands a bigger share of the income and gives the audience more power in influencing who will play in their home cities

Case 4: ”Consumer radio” Traditional vs. DIY radio The popularity of streaming services is increasing (Spotify) There is potential for additional services to streaming services Consumers can currently create and share their own playlists Additional services can offer consumers possibilities to attach additional elements to their playlists: DJ introductions (Playdio, UK), news, weather forecasts etc. From passive to active consumer From competition to co-opetition

Conclusions The development of technology and online services – either as such or combined with other type of activities - will give the audience a much more important and active role in: – creation – innovation – business models – consumption New type of consumption patterns and values require changes in the roles and business models of the other players of the value chains The audience’s active participation will open up new type of possibilities for EU level socio-cultural cohesion

Thank you! Dr Jari Muikku Digital Media Finland