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™ Your One-Stop Resource for All Things Music

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™ Your One-Stop Resource for All Things Music 1 ™ CONFIDENTIAL – FOR DISCUSSION PURPOSES ONLY – NOT TO BE REPRODUCED Any reproduction or distribution of this document in whole or in part, or divulgence of any of its contents, without prior written permission of the company is strictly prohibited. This document is furnished for the sole use of the intended recipient thereof and its designated affiliates, and for the sole purpose of providing information in connection with an investment in this venture. By accepting delivery of this document and any other materials delivered or to be delivered in connection with such purpose, the recipient thereof and any of its affiliates agree not to reproduce this document or any related materials and to return such to the company promptly upon request. This document does not constitute an offer to sell, or a solicitation of an offer to purchase interest in the company. Your one-stop resource for all things music A comprehensive source for the music industry List discography/credits for all aspects of the music industry Add your own information to the database Search for everything music Create your own profile with instant profile updates when tagged in projects Connect with fans to discuss music and trends Discover music industry professionals to work with Customize your feed to stay current with music news MDBN INC. musicdbn.com 760-534-6564 2 Seek music related work online Real time profile view notifications Live podcast Sell merchandise/music/tickets on your own site Find the next big artist THE ISSUE A current global online fragmented destination for finding music industry information and new independent artists is difficult for musicians, fans and industry professionals to navigate when looking for relevant information/artists in the current music industry. THE SOLUTION MdBN- the global online social media networking solution that connects musicians to musicians, fans, industry executives, publishers, labels, distributors, merchandisers, promotors, talent buyers, studio services, a platform for professional and non-professionals in the music and related entertainment industry. We give both professionals and fans a one stop community to everything music on one website/APP. The current online music option is to search throughout the web for access to specific music/data, both professional and non-professional, on numerous social media and music streaming websites. There is a great variety of music related destinations online. Each one answers a particular area of the music world, with some overlapping one another. We put the entire music industry in one central, easy to access location! MDbN brings everyone together on one site/APP in order to help artists create their own page that promotes all of their music, merchandise, ticket sales, live/recorded podcasts and streaming music station to fans and music professionals looking for the next big thing. We include a database of music industry professionals for artists to access and partner with social media platforms and tech tools that bring the attention independent bands beginning their music business journey. REVENUE STREAMS Revenue generated by mobile apps has been growing exponentially. Revenues from paid apps will be $195 billion while that from in-app purchases is forecasted to be $289 billion in 2017. Still, 54% of that revenue will be claimed by 2% of the apps. IN APP ADVERTISING MDbN will have this model of revenue. Selling ad space in the mobile app is one of the most common methods to generate revenue. This allows MDbN to offer their app as a free download. The lack of cost barrier helps in acquiring larger user base which is targeted by MDBN INC. musicdbn.com 760-534-6564 3 advertisers. These free to download apps possess information regarding user location and behavior which is in great demand for marketers. Availability of such information and the willingness among advertisers to pay for it makes this model sustainable. FREEMIUM In Freemium model, the MDbN app offers free as well as paid features. Free features help in acquiring users and bring user engagement. Certain additional features cost money to be unlocked. The large user base allows more prospects of purchase of extra features. This combination of lead generation and sale conversion suits game, entertainment and productivity apps. In-App purchases MDbN app is a sales channel for merchandise, music live podcasts, etc. that brings engagement from the users and is suitable for e-commerce which can earn higher margin than their online website store. Subscription MDbN subscription model will offer free predetermined content and offers paid subscription for premium content worth paying, often with free trial. This brings user loyalty and engagement, and continual revenue MDbN. Partnership with Advertisers MDbN will use an ad-free model which will bring revenue as well as user engagement that satisfies advertisers and users alike. PODCAST MDnB offers artists and musicians the ability to have a podcast on their individual page to promote live performances or recorded content for fans and industry professionals. MDnB will also have its own podcast that will broadcast interviews with various musicians and industry people. This is an additional revenue generating model. U.S. podcast advertising captured $314 million in revenue in 2017, a rise of 86 percent over $169 million in 2016, according to the latest IAB/PwC Podcast Advertising Revenue Study for full-year 2017 released today by the Interactive Advertising Bureau (IAB) and conducted by IAB and PwC US. The research predicts even stronger returns in the years ahead, forecasting that podcast revenue will surge to $659 million by 2020, a triple-digit 110 percent hike from 2017. In self-reported revenues by top podcast companies, revenue continued to rise steadily, growing 94 percent between Q4 2016 and Q4 2017, yielding an 18 percent compound quarterly growth rate. MDBN INC. musicdbn.com 760-534-6564 4 Host-read ads were cited as the preferred ad type, representing more than two-thirds of ads in 2017. Direct response ads transacted on a cost per thousand basis made up the majority of campaigns, followed by brand awareness ads (29%). In addition, ads integrated or edited into programming accounted for 58 percent of the podcast ad inventory in 2017. Of the 14 podcast content genres measured, the top four generated more than half of the advertising revenue in 2017: Arts/Entertainment (17%) Technology (15%) News/Politics/Current Events (13%) Business (11%) “These strong numbers speak to advertisers’ increasing recognition that podcasts provide a powerful platform for reaching and engaging audiences,” said Anna Bager, Executive Vice President, Industry Initiatives, IAB. “ “The growing trend toward ‘anywhere and everywhere’ media engagement has created tremendous opportunity for digital media, of which podcasting is a significant component,” said David Silverman, a Partner at PwC US. “Whether at home on a smart speaker, at work on a PC, or somewhere in between on a mobile device, more and more Americans are listening while they live, providing a robust podcast platform where advertisers can connect with today’s consumers.” If 2017 alone is any indication, the music business is investing heavily in podcasts as an integral part of its future. Within the last two weeks alone, Spotify and Google Play each launched their first original music podcasts, exclusive to their platform. Major labels like Sony Music Entertainment are experimenting with short-form audio podcasts centered around their back catalog. Global music sales grew for the third consecutive year in 2017 with streaming now the single largest revenue source for the record industry, according to the International Federation of the Phonographic Industry's (IFPI) "Global Music Report 2018." Through technology music is transcending borders, including geographic borders like never before,” added Universal Music's Granite, who said that building sustainable success required music companies remaining "focused on artists and artist development, but that we also continue to drive innovation in constructive way, in a public policy environment that enables fair compensation for creators." Last year saw music sales rise by 8.1 percent to $17.3 billion and total digital income account for more than half of all trade revenue (54 percent) for the first time. The worldwide increase in streaming consumption was at the heart of the growth, with the number of paying subscribers climbing to 176 million across all markets (64 million of which were added in 2017). An estimated 42 million Americans (15% of the country’s population) listen to podcasts every week. Hence, coming from a newly growing industry that historically has wielded songs, videos, news feeds and concerts as its only storytelling canvases, music companies MDBN INC. musicdbn.com 760-534-6564 5 and publishers see podcasts as a long-overdue means of reaching their most passionate fans. Joined together, there are 319 million people in the United States alone, so there’s plenty of room for growth. Just look at Apple Music, the service which is available in 113 countries and comes pre-installed on every iOS device only took a year and a half to reach half of Spotify’s size in terms of paying subscribers. And they both keep expanding. New to the market is Amazon Music Unlimited, which is well positioned to reel in new subscribers at $8 per month for Prime members. Then anytime Pandora finally launches its subscription service, it will have 78 million listeners to potentially convert into paying subscribers, not even thinking of the newfound possibility of expansion beyond the U.S., New Zealand, and Australia. SUMMARY Music Database Networks, LLC (MDbN), is a U.S registered website/APP based company that leverages the promotion and marketing of our artist member’s music, merchandise, tickets and live/recorded pod casts and videos online. MDbN is the one place music industry professionals, fans and artists coming together on one website/APP to access all things and people music.
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