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Latin US Email Marketing Performance

April 13, 2017 Significant FRM Progress

1. EMAIL TEMPLATES – there are 72 different custom designed mobile responsive email templates for 30 artists. Each artist has an English and Spanish version while select artist’s have custom templates for new releases. 2. EMAIL SENDS – since using the FanMail Template System, Sony Latin US Account has sent 186 Label and Artist Newsletters to fans since July 2016. 3. FAN ENGAGEMENT – 3,393,885 emails were sent since July with 27.4% Total Opens and 4.5% Total Clicks. Over 150,000 fans have been engaged at some level. 4. FANBASE GROWTH via SIGN UP FORMS – 22 Fan Sign Up Forms built and taken live. Latin label fanbase and several key artist have seen significant subscriber growth. 5. WELCOME EMAILS – There have been 18 automated welcome emails set up and enabled. Fanbase Growth US Fanbase Sign Up

Home Page Single Field Sign Up Fan Sign Up Form Thank You Message Sony Music US-Latin Fanbase Growth

Subscribers Tripled in One Year 45,000 38676 40,000 36812 33808 35,000 29713 31002 30,000 26652 25,000 22227 20,000 15181 16555 15,000 11089 10,000 5,000 0

Fanbase Subscribers CNCO

Home Page Single Field Sign Up

Thank You Message Fan Sign Up Form CNCO Fanbase Growth

Subscribers Up 73.6% 35,000 28639 30,000 27605

25,000 23498 20448 17590 20,000 16489 16796 15,000

10,000

5,000

0 6/13/2016 7/22/2016 8/26/2016 10/28/2016 12/25/2016 2/2/2017 2/26/2017 Fanbase Subscribers Fanbase Growth

Subscribers Increased 40% 40,000

35,000 27,946 28,274 30,000 26,176 27,342 24,262 25,000 21,419 20,092 20,000

15,000 10,000

5,000 0 4/4/2016 8/29/2016 9/23/2016 11/21/2016 1/6/2017 1/16/2017 1/27/2017 Fanbase Subscribers – Fan Sign Up Blends into Website

Home Page Single Field Sign Up

Fan Sign Up Form Thank You Message Artists with Fan Permission Forms

• Sony Latin US LABEL • Marc Anthony Coming Soon: • CNCO • Yordano • Adexe y Nau • Kany Garcia • • Bomba Estereo • Prince Royce • • Diana Fuentes • • Mix5 • • Rolf Sanchez • Thalia • Sammi Starr • • Silvestre Dangond • – Contest • Email Metrics Sony Music US-Latin Label

2017 Newsletter Performance: • Average Open Rate: 11% • Average Unique Click Rate: 1% • Fanbase Size: 38,676 (350% growth since first send on 4/4/2016)

English and Spanish Versions: • Started sending two languages in December • Spanish language performance 20% better

New Fan Welcome Email Performance: • Unique Open Rate: 40% • Unique Click Rate: 12%

Newsletter Fan Welcome Email CNCO

2017 Newsletter Performance: • Average Open Rate: 24% • Average Unique Click Rate: 7% • Fanbase Size: 28,639 (76% increase since first send on 5/27/2016)

New Fan Welcome Email Performance: • Unique Open Rate: 39% • Unique Click Rate: 20%

Newsletter Welcome Prince Royce

2017 Newsletter Performance: • Average Open Rate: 14% • Average Unique Click Rate: 3% • Fanbase Size: 22,566 (6% increase since first send on 5/10/2016)

New Fan Welcome Email Performance: • Unique Open Rate: 55% • Unique Click Rate: 13%

Newsletter Welcome Marc Anthony

2017 Newsletter Performance: • Average Open Rate: 28% • Average Unique Click Rate: 6% • Sendable List Size: 28,273 (+8,182 fans since the first send on 12/23/2016)

Welcome Email Performance: • Form is live, but welcome email is still waiting for approval.

Newsletter Welcome Becky G

2017 Newsletter Performance: • Average Open Rate: 11% • Average Unique Click Rate: 2% • Fanbase Size: 14,780 (2% increase since first email sent on 7/1/2016)

New Fan Welcome Email Performance: • Unique Open Rate: 46% • Unique Click Rate: 20%

Newsletter Welcome Kany Garcia

2017 Newsletter Performance: • Average Open Rate: 27% • Average Unique Click Rate: 11% • Fanbase Size: 1,651 (19% increase since the first send on 4/29/2016)

Welcome Email Performance: • Unique Open Rate: 70% • Unique Click Rate: 16%

Newsletter Welcome Mix5

2017 Newsletter Performance: • Average Open Rate: 22% • Average Unique Click Rate: 6% • Sendable List Size: 2,795 (started with a new list)

Welcome Email Performance: • Unique Open Rate: 34% • Unique Click Rate: 11% • Sent: 326

Newsletter Welcome Silvestre Dangond

2017 Newsletter Performance: • Average Open Rate: 27% • Average Unique Click Rate: 6% • Sendable List Size: 5,553 (2% increase from the first send on 1/20/2017)

Welcome Email Performance: • Unique Open Rate: 72% • Unique Click Rate: 35% • Sent: 774

Newsletter Welcome Ricky Martin

2017 Newsletter Performance: • Average Open Rate: 13% • Average Unique Click Rate: 2% • Fanbase Size: 151,245 (2% increase since first send on 9/23/2016)

Tour Support Emails Being Sent

New Fan Welcome Email Performance: • Unique Open Rate: 50% • Unique Click Rate: 21% • Form has been removed from current website

Newsletter Welcome Romeo Santos

2017 Newsletter Performance: • Average Open Rate: 16% • Average Unique Click Rate: 6% • Fanbase Size: 47,330 (there has only been one send)

New Fan Welcome Email Performance: • Unique Open Rate: 57% • Unique Click Rate: 20%

Newsletter Welcome Shakira

2017 Newsletter Performance: • Average Open Rate: 13% • Average Unique Click Rate: 4% • Fanbase Size: 216,646 (*decreased by 2% since first send on 10/28/2016) • *The decrease is due to the number of hard bounces that were excluded from the send.

Welcome Email Performance: • The form has been removed from the current website

Newsletter Welcome Bomba Estereo

2017 Newsletter Performance: • Average Open Rate: 12% • Average Unique Click Rate: 1% • Fanbase Size: 30,563

Tour Support Emails Being Sent

Welcome Email Performance: • Form build in progress

Newsletter Welcome Yandel

2016 Newsletter Performance: • Average Open Rate: 57% • Average Unique Click Rate: 24% • Sendable List Size: 70

Tour Support Emails Being Sent

New Fan Welcome Email Performance: • Unique Open Rate: 51% • Unique Click Rate: 10%

Newsletter Welcome Thalia

2017 Newsletter Performance: • There have been no newsletter sent • List size: 4,509

New Fan Welcome Email Performance: • Unique Open Rate: 63% • Unique Click Rate: 23%

Welcome

2016 Newsletter Performance: • Average Open Rate: 11% • Average Unique Click Rate: 2% • Fanbase Size: 32,474

Welcome Email Performance: • On hold

Newsletter Farruko

2016 Newsletter Performance: • Average Open Rate: 19% • Average Unique Click Rate: 9% • Sendable List Size: 310

Welcome Email Performance (Contest): • Unique Open Rate: 56% • Unique Click Rate: 16%

Newsletter Welcome Mau y Ricky

2016 Newsletter Performance: • Average Open Rate: 33% • Average Unique Click Rate: 17% • Sendable List Size: 24

Welcome Email Performance: • Unique Open Rate: 75% • Unique Click Rate: 5%

Newsletter Welcome Leslie Grace Welcome Yordano Welcome Diana Fuentes Welcome Franco De Vita

2017 Newsletter Performance: • There have been no newsletters sent • List size: 999

Welcome Email Performance: • Landing page with form has been removed

Welcome

2017 Newsletter Performance: • Average Open Rate: 25% • Average Unique Click Rate: 5% • Sendable List Size: 530

Newsletter Sony Latin US Digital News

Digital Team Internal Communications and Region • Average Open Rate: 55% • Average Unique Click Rate: 8% • Sendable List Size: 52

Newsletter Fan Relationship Marketing FRM > CRM Observations and Learnings 1. Best Preforming Email - Welcome Emails consistently receive the best open/click metrics and are crucial for initial Fan engagement. 2. Growing the List – Every artist needs to constantly grow their fanbase by executing effective list growing campaigns such as social media sign up, digital promotions, and website capture. 3. Consistent Message Cadence - Providing consistent quality content to fans is important. There are a number of artist fanbases that have not received news over a period of time. 4. Test, Test, Test - Continue to test send times, subject line and content will provide valuable insight into the artist’s audience to improve engagement. 5. Healthy Fanbase - Maintaining a healthy list is important. Periodic hygiene to remove non- interested Fans keeps your fanbase healthy and avoids hurting email inbox delivery. 6. Segment by Language and Country – continue to target email marketing initiatives to address the fan’s natural language, location, and to extent possible fan’s interests. 7. Build Upon Progress – where the foundation is built, continue to add/utilize new features like Welcome Series, Digital Contests, Automated Campaigns, and Ecommerce Conversion Emails. FRM Work In Progress 1. Program Testing to Learn: • Send Time Optimization: the process to identify best time of day when the audience is most engaged. Sony Music Label and Shakira have been the first to begin this testing. • A/B Subject Line: the process of allocating multiple subject lines to see which out preforms the other, then the winner is sent to the remainder. Becky G, Marc Anthony, Prince Royce and Sony Music Label have enabled these tests. • Segmentation: the process of utilizing Fan data to target a more appropriate message. SML uses this for English or Spanish Messaging, Location data as well as determining the Fan’s previous engagement with an artist’s emails. 2. Development Programs/Contests: • Prince Royce Win A Date – A contest that allow fans to meet with Prince Royce. Set up automated welcome emails that identify winners of the contest. This is still in progress. • #CNCOwners Forever Program – An fan advocate program being used to identify the most highly engaged fans to invite them to become key digital influencers and sources of Word of Mouth in their location. • Moveable Ink Tools –provides a variety of customizations used to encourage engagement within emails. The first campaign was launched that announced the new CNCO single which contained a personalized banner for the Fan. • Wyng Campaigns – engagement platform used to grow fanbase email lists through a variety of digital promotion tools such as contest giveaways, fan generated photos/video, and voting, polls, and other engaging activity in social media. 3. Fan Engagement: • Welcome Series – are an automated nurturing series of emails that are sent over a period time upon sign up. We are in the progress of implementing this for Prince Royce. • StoryPorts Content Tools – a tool that automatically pulls in social media content into emails for fans to engage with.