Spotify Accounts for 35% of International Digital Revenue

Account Updates

Spotify

Market Share

• Spotify accounts for 35% of international digital revenue

• In US, it accounts for 10% of digital revenue

• In Scandinavia, it accounts for 90% of digital revenue

New Free Options

• In December Spotify announced Mobile Shuffle (A free, ad-supported tier for mobile devices, but restricted to shuffle mode).

• Spotify did this to increase their pool of potential premium subscribers

• Since Dec, growth in free users is outpacing growth in paid, thus overall conversion has slowed

• Topspin Partnership: Allows artists to display merch links on their artist page (see here for more details: http://www.spotifyartists.com/get-your-merchandise-on- spotify/

Best Practices

• Make sure your artists are verified. You can’t interact with your followers unless you do.

• Create and share playlists on a regular basis. Create engaging content to engage with your followers. Include your own tracks on those lists.

• Use Follow Buttons on your online properties in the same way you have iTunes and Amazon buy buttons.

• Consider exclusive content (bonus tracks, track-by-track commentary, pre- releases, etc.)

• Consider Soundrop Campaigns

• more details: http://www.spotifyartists.com/)

iTunes iTunes Radio

• Average of over 1.5MM unique users per day listening to on average 7-8 songs per day

• First Play – exclusive iTunes album stream 1 week in advance of street date, great promotional value, highly competitive, need to pitch at least 6-8 weeks out (more lead time is better)

• Heavy Rotation – increased plays on genre-based iTunes Radio stations, royalty free on account of promotional value, capped at 2 plays per unique listener per hour

• Royalties – 50% paid to SoundExchange, 50% paid to content providers via RED. iTunes store placement Impact

• Mobile placement vs. Desktop – mobile placements receive far more clicks than those on the desktop store, nearly 70% of all iTunes transactions take place via mobile devices, mobile placements mirror the desktop store for the top placed titles

• Top Charts, Quick Links & Listeners also bought – these are some of the most effective sales drivers, generating more transactions than editorial placements

• 70% of all transactions are initiated by Search – 7 out of 10 iTunes customers who make purchases do so based on direct search results. They go to the store because they know what they want to buy, not because they are looking for suggestions.

Catalogue/Room Sales

• iTunes is looking to boost catalog business. They are interested in label/artist specific catalog sales deeper discounting. Pitch sale rooms based around strong drivers like big tours, new albums, anniversaries, etc.

Amazon MP3

Digital Preorders Now Live • In the short term we are not able to schedule a start date and pre-orders will become live as we deliver full assets. Soon we will be able to start scheduling dates. Instant Grat tracks will be available at that time, and Complete My Album at a later date.

Physical and digital parity

• Amazon always looks for digital and physical parity per title. They want the same version of a release for all of their customers

Digital Deluxes and Amazon Exclusives

• Amazon, while preferring that all retailers have the same version, would like also to be included in discussions about exclusive content if other accounts are receiving

Best Practices

• Tagging parity – please make sure to tag Amazon on your socials in the same way that most of you tag iTunes

• Tweets. Amazon now has a much more active twitter feed (1.6 mill) and will re- tweet with much more frequency that previously.

• Artist Central – take control of your Artist stores to add content such as photos, bio, videos, Twitter feed, Audio streaming.

Google Play

Fast Growing account

• 1 Billion android devices activated globally and 1.5 Million new devices activated daily

• Growth propelled market penetration of Android devices (approx 50% in US and close to 80% WW).

• Of the current revenue around 35% is coming from the streaming service that launched last summer

• Currently #4 account by revenue for RED and could be #3 by end of the year.

• Excel in Country, Hip Hop.

• Pre-orders to launch hopefully in Q2

Streaming • 2 of 3 streaming service users is new to Google Play Music

• Only 2% of those subscribers bought a product in music after signing up for subscription.

Key Programs

• Antenna Developing Artist Program

• Free Song of the Day

• Moving Portrait and My Favorite Things

• Open to free sampler type campaigns in conjunction with a set of sale priced albums

Beats Music

App Info:

• The app is designed first and foremost for mobile use. The desktop version doesn’t have all the functionality of the Mobile version

• The app is built around playlists that are put together by a team of experienced genre editors. The app features these lists heavily over search for an artist and play an album function. Human curation over algorhythm.

Artist Page vs. User Page

• Artist Pages contains artist photos and bios from Rovi or via the ArtistLink through Topspin.

• User Pages are the pages claimed in the verification process. Playlists and profile/background images can be uploaded to this page. These are the pages by which you can interact with followers both as an artist and as a label. We encourage you to have active profiles and start to collect followers

AT&T Tie-in

• Family: 5 devices for $14.99/month (90 day free trial)

• Single: $9.99/month (30 day free trial)

Best Practices • Office visits to their HQ - we can take artist in for office visits (Santa Monica, CA) to do call outs and liners . This is the best way to get some extra attention from the music team. They are all in the office, so a visit makes the most impact.

• Linking Artist profile with Topspin account

• Creating playlists -Please also have your artist create playlists for Beats Music. They prefer exclusive playlists. Some of these will just end up on your use page but we can try to get placement for the best ones in the main pages of the app.

Topspin

• Beats recently purchased Topspin to further boost the app to fan engagement. This should help all of us reach those fans and listeners of our music

YouTube

Metrics

• More than 1 billion unique users per month who watch over 6 billion hours of video

• 100 hours of video are uploaded every minute

• 40% of views are music related or contain music

• Available in over 200 countries and in 21 languages

Audio monetization

• Audio Fingerprinting

RED delivers all releases to YouTube’s Content ID system to be fingerprinted. When YouTube detects a video that uses your audio, a pre-roll or banner ad is attached to the video and a percentage of ad revenue is paid back to the content owner for audio usage.

• Conflict Resolution and Takedowns

When more than one distributor claims they have YouTube monetization rights for the same song in the same country, a conflict occurs and YT halts all monetization. RED regularly monitors for conflicts and resolves them asap

RED also monitors for full album uploads by YouTube users. Whenever one is discovered it is immediately taken down. If you find a full album upload of one of your artists, or you find a video utilizing your audio that is not being monetized (ads are not running against it), let us know and we will investigate.

YouTube Music Subscription (ETA mid-2014)

Metrics

• No. 9 online video property in Jan 2014 (36.8M monthly uniques)

• No. 1 YouTube partner channel (31.6M subscribers)

Best Practices

• Set metadata complete and upload video to our ftp 3 weeks out

• Request VEVO channels for your artists as early as possible, as they can take over a week to create

• Use VEVO player if premiering with another partner (MTV, CMT, Pitchfork, etc.)

• Create teaser/countdown type video clips for your big video premieres

• Deliver a pseudo video to VEVO for key tracks - it will monetize much better on YouTube via VEVO than it will if you or a fan uploads it directly to YouTube.

• Consider pseudo videos for full album pre-streams

• Submit videos for artist takeovers of applicable VEVO @ YouTube genre channels

• Film Artist IDs for VEVO TV and VEVO @ YT genre channel takeovers

Cricket/ Muve Music

• Streaming subscription service bundled into Cricket Wireless plans

• Over 2 million paying subscribers as of October 2013

• Also available in Brazil via TIM

• Urban, Latin, and Pop are the target genres • Consider the following for priority artists in these genres:

• Video and audio drops

• Exclusive audio content for inclusion in marketing programs

• Prizing for contests

Rhapsody

• Rhapsody continues to hold onto a steady subscriber base of close 1 MM paid subscribers

• Rhapsody is live in many EU territories under the Napster brand and expansion is a goal

• Key marketing opportunities revolve around their on-site blog and are built around playlists and label /themed spotlights

• They also record video features such as acoustic sessions (in SF) and “On The Record” (45 seconds of artist talking about a favorite album.

• Rdio is growing steadily but still lags far behind other services.

• Rdio recently launched a free add supported Tier for the Web version of the service. Mobile or ad supported requires a subscription fee

• Marketing is limited here. They have a program to trade Socials for Facebook ads

• They do look for exclusives and record sessions occasionally. They have access to ad inventory on Cumulus radio stations that can be used to promote these exclusives and sessions

Xbox Music

• Mainly a streaming service but also includes downloads

• Free streaming now on the Web • Microsoft is planning to bring Xbox Live functionality to Android and iOS. This means that instead of using Google Play Games or Game Center to track achievements and also connect with other game players, you will be able to use Xbox Live instead.

• US subscribers (October 2013) at around 500,000

• They are looking for compelling video and imagery for marketing Music Pass and other retail executions to gamers. Think of bands with visual appeal the gaming audience.

Sony Music Unlimited

• The streaming service of Playstation

• Office visits in Los Angeles are also helpful, those artists that are also gamers, especially Playstation 4 users, make the most sense. Can record a segment for artist talking about a favorite game and the music that would go with it.

• This service does really well with hip-hop and rock genres.

Slacker

• Dual offerings: On demand streaming (premium) and non-interactive radio (a la Pandora)

• Will be powering the new Samsung exclusive streaming service “Milk”

• Visit to Slacker HQ in San Diego can be arranged. Content could be captured for use with a channel.

• ‘I Am the DJ’ is the biggest opportunity for artists. Artists takes over the site and a channel and plays selected songs and describes why they were chosen etc.

eMusic

• Editorial driven account

• Primary Genre : Indie / “Pitchfork” centric

• Key Programs • Daily Downloads – free track available for 24 hrs with key placement

• Artist Q&A’s

• Album Reviews

AMI Jukeboxes

Metrics

• 30,000+ jukeboxes across US

• 335 Million songs played a year

• 100 Million advertising impressions per month

Marketing Opportunities

• Screen Savers

• Full Screen static page

• Full Screen video page

• Banner

Pre-Release

• Album play availability one week prior to street date

• Promoted via any of the above Screen Saver options iTunes Exclusive

• Cross promotion on network of album/song, tagging iTunes

Contesting

• On network contesting for flyaway's, ticket giveaways, autographed item

• Sharing of all emails entered with the label

• Promoted via any of the above Screen Saver options

Touchtunes Jukeboxes Metrics

• 60,000+ jukeboxes across US

• Average of 2,000,000+ songs played daily

Marketing Opportunities

• Artist, album and song promotions

• Album/song pre-releases

• Playlist programming

• Promotional Video Attract Loops

• Ad supported tie-ins

• Social media content/promos

Soundcloud

• 250 million active listeners globally

• Account whitelisting and free upgrade to Pro Status

• Data access

• Unlimited uploads

• Marketing Campaigns

• Remix campaigns

• Uploading non-music audio (interviews, Spotify commentaries)

• Live Q&A for fans

• PRO-Partner Profile

• Best practices

• Plays do not monetize…yet • Do not upload full albums

• Tracks shouldn’t live on Soundcloud for longer than 30 days

Shazam

• Metrics

• 420 million global users (115 million users in U.S.)

• 86 million monthly active users

• 16 million tags a day

• Opportunities

• Targeted content in the newsfeed (re-target previous taggers)

• Targeted media buys based on past Shazam data

• TV/Awards Shows/Late Night appearance opportunities

• Commercial syncs – custom results

• Music videos – Shazam for additional content

• Shazam Sessions

• Special ad rates via ‘stache media advertising