The Buyer and the Beats the Music Consumer and How to Reach Them

Home , Sellaband, Shazam (application), Torrentz

THE BUYER AND THE BEATS THE MUSIC CONSUMER AND HOW TO REACH THEM

SXSW 2013 Copyright ©2012 The Nielsen Company. Confidential and proprietary. SXSW PREMIERE 2013 VIEW THE PDF VIEW THE VIEW ITONLINE To view thepresentation, please click on thelinks below: content use, fan types, the and unmet that needs they have. the music fan.You will learn more abouttechnology, free at the eventto help companies understand the facts behind Co - presented by SXSW and Nielsen,this study was unveiled

24% Size of SegmentConsumer

Consumers Occasional Concert 14% Aficionado Aficionado 75

Fans 14%

% OFALLMUSIC SPENDING

Big BoxBig Digital Fans 13% Fans 13%

9% 14% Share of Music Spend

10%

27%

34%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. • are 17%ageOnly 13 discovery. leveragingfor technology music manyUses different and todevices listen services music; to interested in musicians. via friends toemail/texts, Connects likes tohave updates fromfavorite R&B,Oldies, Folk, Punk, World,Electronic/Techno… metal; least likely Topto be 40, Favoritemusic mostis likely alternativeto be rock,contemporary rock,heavy or Often buys fromAmazon, local recordstores. Brandmusic) cantoendorsement beturnoff some. (of from favoritetheir bands. customer. Apple live events. consideredIs trendsetter.a music Most get media social updates streaming. Very social discovering. all on Spendsformats, merchandise, and concerts,pays for online understandwho musicindustry.the of “workings” the Always listening, always engaged,veryLovemusic, many genres,current aswell ascatalogue. Indie fans FANSAFICIONADO

- 17. -

active networkingand social attendswith all of types HipHop –

in in all possible new/innovativeways

, or R&B. Also likely Also R&B. , or to

listento Pop, except

Copyright ©2012 The Nielsen Company. Confidential and proprietary. • areage32% 13 Discoversmusic YouTube,on Morelikely listento music to throughYouTube than radio (66%) (57%); Think brandswell of Apple music. customer. that sponsor they and areso buying music now.less Could afford music. spend moreon to to discoverthem moremusic, but also,(freeinternetaccessfree toenjoy radio) Smartphones recommendationreviews, (Genius), engines ratings.blogs, bands and/or Fans. industry Aficionado as the Influenced bymusic friendsaboutmusic. with Veryengaged with music notasaware but of Indie shareplaylists, Considers trendsetter,be amusic tothemselves likes engageto listen Active social with networking, music throughto FB, give music asgifts, DIGITAL FANS

arebecomingentertainment their - 17; Highest HHI $71k; 21% Hispanic Highest 21% $71k; HHI 17;

Facebook , iTunes,, shows, TVTwitter, blogs/chats… hub.Technology

has has enabled

Copyright ©2012 The Nielsen Company. Confidential and proprietary. • • Listen music to car/train the in and/or muchWill not at home).atgo (but work Claims haveto intense avery relationship (especially Pop music with and ( forconcertsto a favorite heavilyformsentertainment band. Spends of other on CONCERTOCCASIONAL CONSUMERS Likely player touseanMP3 CD player;or have mostdon’t a (forcategories).music aswell asother Think brands well of music. that sponsor games, and commercials.discountA that shopperis heavily influenced bydeals likeand tomuch veryCountry) music the that TV, movies,in theyhear video BIG BOXFANS ie

TV packagesTV games). and video Pandora.Uses

smartphone

Copyright ©2012 The Nielsen Company. Confidential and proprietary. • • engaged not music. with music; time with (free) only but spends and movies,TV on money some Spends BACKGROUND MUSIC CONSUMERS segment. other Classical. Averageentertainment on income, spendsless but overall than any Pop,Contemporary Christian, Adult Contemporary; listenalso to and concertswilling topay forspecial/unique content. Favorite genres include connectedto favoriteNot social bands via media. Willing payto forstreaming moreSeeking AMBIVALENT MUSIC CONSUMERS -

not particularly particularly not engagedmusic are but the with using Pandora.

HipHop

/R&B, 8

ATTITUDES Copyright ©2012 The Nielsen Company. Confidential and proprietary. Somewhat/Strongly Agree with statements about music OPINIONS MUSIC ABOUT I believe that once a musician/band gets a record deal, they are making a good living from their… I don't as buy much music as I used to because Iam streaming or downloading free music from… I would like toknow more about my favorite musicians what - they are like as people, and how… The local independent record store sells music that reflects mymusical tastes and preferences New technologies and services (such as Pandora, shared playlists, etc ) have made iteasier for… I like it when I have theinside scoop about themusic that Ilike, when I know/learn something… I believe that once a musician/band becomes well known, they are making a good living from… I've purchased t-shirts, stickers, or other merchandise from my favorite musician/band in the… It is Itimportant is for me to own something physical from my favorite musician/ band(such as a… I would like toknow more about the creative process from the musicians/bands Ilike I try to see my favorite musicians/bands whenever they touror play ashow near me Independent music has more artistic integrity thanmainstream/commercial music Certain songs make me think about specific people, places, ortimes in lifemy It is Itimportant is tome tobuy CDs from my favorite musicians/bands My friendsthink of me as a trendsetter when comesit to music I enjoy live showsfor local, indie,or unsigned musicians/bands The music someone likes can tellyou a lot about that person I can get so involved with music that Iforget everything else I enjoy receiving emailsfrom my favorite musicians/bands I could afford to spend more money on music than I do I enjoy compilingmusic playlists with a specific theme I connect withfriends and family through music I would be completely lost withoutmy music I enjoy sharingmusic playlists withfriends I enjoy independent or \indie\"music" I often discuss music with friends I enjoy reading music blogs

–

BIG BOXFANS 10%

16%

29% 33% 34% 34%

35% 36% 36%

41%

45%

48%

51% 53% 53%

54% 55% 56%

58% 58%

66% 66% 67% 68% 69%

86%

93%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. Somewhat/Strongly Agree with statements about music OPINIONS MUSIC ABOUT I believe that once a musician/band gets a record deal, they are making a good living from their… I don't as buy much music as I used to because Iam streaming or downloading free music from… I would like toknow more about my favorite musicians what - they are like as people, and how… The local independent record store sells music that reflects mymusical tastes and preferences New technologies and services (such as Pandora, shared playlists, etc ) have made iteasier for… I like it when I have theinside scoop about themusic that Ilike, when I know/learn something… I believe that once a musician/band becomes well known, they are making a good living from… I've purchased t-shirts, stickers, or other merchandise from my favorite musician/band in the… It is Itimportant is for me to own something physical from my favorite musician/ band(such as a… I would like toknow more about the creative process from the musicians/bands Ilike I try to see my favorite musicians/bands whenever they touror play ashow near me Independent music has more artistic integrity thanmainstream/commercial music Certain songs make me think about specific people, places, ortimes in lifemy It is Itimportant is tome tobuy CDs from my favorite musicians/bands My friendsthink of me as a trendsetter when comesit to music I enjoy live showsfor local, indie,or unsigned musicians/bands The music someone likes can tellyou a lot about that person I can get so involved with music that Iforget everything else I enjoy receiving emailsfrom my favorite musicians/bands I could afford to spend more money on music than I do I enjoy compilingmusic playlists with a specific theme I connect withfriends and family through music I would be completely lost withoutmy music I enjoy sharingmusic playlists withfriends I enjoy independent or \indie\"music" I often discuss music with friends I enjoy reading music blogs

–

AFICIONADO FANSAFICIONADO 21% 25%

30%

33% 34%

36% 38%

44% 48% 49%

52% 52% 52%

56% 57% 57% 57%

58% 59%

62%

64%

68% 68%

71% 73%

84%

94%

–

DIGITAL MUSIC FANS 26% 26% 29% 30% 30%

32%

41% 44% 45% 46%

47% 47% 48%

50% 50%

51%

53%

55%

57% 58%

61% 62%

65% 66%

69%

76%

90%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. Somewhat/Strongly Agree with statements about music CONSUMERS OPINIONS MUSIC ABOUT I believe that once a musician/band gets a record deal, they are making a good living from their… I don't as buy much music as I used to because Iam streaming or downloading free music from… I would like toknow more about my favorite musicians what - they are like as people, and how… The local independent record store sells music that reflects mymusical tastes and preferences New technologies and services (such as Pandora, shared playlists, etc ) have made iteasier for… I like it when I have theinside scoop about themusic that Ilike, when I know/learn something… I believe that once a musician/band becomes well known, they are making a good living from… I've purchased t-shirts, stickers, or other merchandise from my favorite musician/band in the… It is Itimportant is for me to own something physical from my favorite musician/ band(such as a… I would like toknow more about the creative process from the musicians/bands Ilike I try to see my favorite musicians/bands whenever they touror play ashow near me Independent music has more artistic integrity thanmainstream/commercial music Certain songs make me think about specific people, places, ortimes in lifemy It is Itimportant is tome tobuy CDs from my favorite musicians/bands My friendsthink of me as a trendsetter when comesit to music I enjoy live showsfor local, indie,or unsigned musicians/bands The music someone likes can tellyou a lot about that person I can get so involved with music that Iforget everything else I enjoy receiving emailsfrom my favorite musicians/bands I could afford to spend more money on music than I do I enjoy compilingmusic playlists with a specific theme I connect withfriends and family through music

I would be completely lost withoutmy music I enjoy sharingmusic playlists withfriends I enjoy independent or \indie\"music" I often discuss music with friends I enjoy reading music blogs

–

BACKGROUND MUSIC 18% 19% 20% 20% 21% 22% 23%

24% 24% 24%

25%

27%

28%

31% 31%

34% 35% 35% 35%

40%

41% 41% 42% 44%

50% 52%

75%

I would be completely lost withoutmy music I enjoy sharingmusic playlists withfriends I enjoy independent or \indie\"music" I often discuss music with friends I enjoy reading music blogs

–

3% OCCASIONAL CONCERTOCCASIONAL

7% 10%

13% 13% 15% 15%

16% 18% 18%

19%

21%

22%

30% 32% 33% 34% 34%

41% 41% 44%

48% 49%

53% 53%

58%

84%

I would be completely lost withoutmy music I enjoy sharingmusic playlists withfriends I enjoy independent or \indie\"music" I often discuss music with friends I enjoy reading music blogs

–

AMBIVALENT MUSIC 14% 14% 15% 16% 17% 19%

22%

25%

28% 28% 29% 30% 30%

35% 35%

36% 38% 39% 39%

45% 46% 47% 49%

51%

58%

69%

89%

FANATICISM Copyright ©2012 The Nielsen Company. Confidential and proprietary. 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% DIGITALFANS listened mostfrequently overall. BOXBIG FANS wassignificantly more likelytolisten their favorite FANSor bands daily on a musicians AFICIONADO basis, and FREQUENCY OF LISTENING TO FAVORITE BAND BIG BOX FANS BIG 12% 52% 29% 8%

AFICIONADO FANS AFICIONADO 41% 51% 5% 2%

DIGITAL MUSIC FANS MUSIC DIGITAL 39% 51% 4% 7%

BACKGROUND 33% 35% 25% 8%

OCCASIONAL CONCERT OCCASIONAL 29% 52% 11% 7%

AMBIVALENT 32% 47% 12% 8%

Daily Daily Weekly Monthly Monthly Than Often Less

100% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Copyright ©2012 The Nielsen Company.0% Confidential and proprietary. at leastmonthly. FANS AFICIONADO and DIGITALFANS were mostlikely to their visit favorite or bands’ websitesmusician with visiting more 60% FREQUENCY OF VISITING BANDWEBSITE BIG BOX FANS BIG 14% 29% 14% 37% 6%

AFICIONADO FANS AFICIONADO 25% 35% 20% 18% 1%

DIGITAL FANS DIGITAL 19% 37% 29% 6% 9%

BACKGROUND 10% 11% 11% 64% 4%

OCCASIONAL CONCERT OCCASIONAL 12% 13% 64% 1% 9%

AMBIVALENT 10% 20% 18% 51% 1%

Daily Daily Weekly Monthly Yearly Never

Copyright ©2012 The Nielsen Company. Confidential and proprietary. AFICIONADO FANS AFICIONADO are engagedthe mostsocially with their favorite or bands. musicians SOCIAL ENGAGEMENT FAVORITEWITH BAND 79% BACKGROUND

CONSUMER MUSIC MUSIC 59% BIG BOXBIG

21% FANS

41%

79%

OCCASIONAL CONSUMER CONCERT AFICIONADO AFICIONADO

21% 60% FANS

40%

74% AMBIVALENT CONSUMER

MUSIC MUSIC 53% 26%

DIGITAL

FANS

47%

YES

NO 19

Copyright ©2012 The Nielsen Company. Confidential and proprietary. DIGITALFANS. FANS AFICIONADO are mostlikely to subscribe fromto emails their favorite or bands, followedmusicians BIGBOX FANS and EMAIL ENGAGEMENT FAVORITEWITH BAND 84%

BACKGROUND CONSUMER MUSIC MUSIC

65% BIG BOXBIG

16% FANS

35%

88%

OCCASIONAL CONSUMER CONCERT AFICIONADO AFICIONADO

55% 12% FANS

45%

85%

AMBIVALENT CONSUMER MUSIC MUSIC 69%

15% DIGITAL FANS

31%

YES

NO 20

Copyright ©2012 The Nielsen Company. Confidential and proprietary. while other other werewhile significantly likelyless to band own memorabilia. BOXBIG FANS, FANS, AFICIONADO and DIGITALFANS were likely to band own memorabilia for their favorite or bands, musicians MEMORABILIA OWNERSHIP FOR FAVORITE BAND 81% BACKGROUND

CONSUMER MUSIC MUSIC 53% BIG BOXBIG

19% FANS 47%

85%

OCCASIONAL CONSUMER CONCERT AFICIONADO AFICIONADO

62% 15% FANS

38%

78% AMBIVALENT

CONSUMER MUSIC MUSIC 46%

22%

DIGITAL FANS

54%

YES

NO 21

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% never seen their favorite band musician or live and in of BACKGROUNDOver60% CONSUMERS,MUSIC CONCERTOCCASIONALCONSUMERS, and AMBIVALENT CONSUMERShave CONCERT ATTENDANCE FOR FAVORITE BAND BIG BOX FANS BIG 50% 18% 11% 21%

AFICIONADO FANS AFICIONADO 35% 21% 18% 26%

DIGITAL FANS DIGITAL - person. 26% 13% 23% 38%

BACKGROUND 10% 75% 9% 6%

OCCASIONAL CONCERTS OCCASIONAL 10% 15% 68% 7%

AMBIVALENT

13% 14% 67% 6%

3+ Times 3+ Twice Once Never

Copyright ©2012 The Nielsen Company. Confidential and proprietary. FAVORITE BANDSTATS Total Owns Avg. # Digital Avg. # Digital Avg. (most frequent answer) Live List % Subscribed to Email Listens to Their Music… Passion For… Feel The Same Level of

Concerts Concerts Attended # CDs # CDs Owned

# of B Memorabilia ands

Tracks Albums

They

BIG BIG FANSBOX Never (50%) (52%) Daily 35% 47% 4 4 2 5

AFICIONADO 3+times Weekly (35%) (51%)

62% 45% FANS 6 10 2 7

DIGITAL DIGITAL FANS Weekly Never (38%) (51%) 54% 31% 2 8 2 5

BACKGROUND BACKGROUND CONSUMER Weekly Never (75%) (35%) MUSIC 19% 16% 1 3 1 2

OCCASIONAL CONSUMER Weekly CONCERT CONCERT 10 Never (68%) (52%) 15% 12% 5 1 2

AMBIVALENT AMBIVALENT CONSUMER Weekly Never (67%) (47%) MUSIC 22% 15% 5 5 1 3

MUSIC ACQUISITION Copyright ©2012 The Nielsen Company. Confidential and proprietary. NOTE: includes “buying music with a gift card you received” which was not included in the spending totals reported in SXSW pr inSXSW reported spendingtotals intheincluded not was whichreceived” you card gift a with“buyingmusic NOTE:includes ANNUALSPENDING ONMUSIC ACTIVITIES BIG BIG BOX FANS MUSICCONSUMERS BACKGROUND $196 $44

OCCASIONAL CONCERTOCCASIONAL AFICIONADO AFICIONADO FANS CONSUMERS $121 $422

DIGITAL MUSICFANS AMBIVALENT MUSIC ese ntation $363 CONSUMER $83

Attendinglive events music bands like that you Buying memorabilia thefrom Buying CDs Buying albums digital Buying tracksdigital Buying other forms ofmusic others Buying gift formusic cards thatyou received Buying with a music cardgift subscriptionSatelliteradio services onlinePaid music streaming

Copyright ©2012 The Nielsen Company. Confidential and proprietary. NOTE: includes “buying music with a gift card you received” which was not included in the spending totals reported in SXSW pr inSXSW reported spendingtotals intheincluded not was whichreceived” you card gift a with“buyingmusic NOTE:includes ANNUALSPENDING ONMUSIC ACTIVITIES BIG BIG BOX FANS MUSICCONSUMERS BACKGROUND $196 $44

OCCASIONAL CONCERTOCCASIONAL AFICIONADO AFICIONADO FANS CONSUMERS $121 $422

DIGITAL MUSICFANS AMBIVALENT MUSIC ese ntation CONSUMERS $363 $83

Attendinglive events music bands that likeyou Buying memorabilia fromthe Buying Music others Buying gift formusic cards subscriptionSatelliteradio services onlinePaid music streaming

BACKGROUND

CONSUMERS

BIG BOX FANS MUSIC ALBUMS ALBUMS DIGITAL DIGITAL ACQUISITION FOR FAVORITE 3 3 2 1 3

DIGITAL DIGITAL TRACKS TRACKS

13 11 10 5 8 1

10 15 20 25 30 10 15 20 25 30 0 5 0 5 CDS CDS 4 8 4 8

OCCASIONAL CONSUMERS AFICIONADO CONCERT ALBUMS ALBUMS DIGITAL FANS DIGITAL 4 4 3 1 3 1

DIGITAL DIGITAL

TRACKS TRACKS 12 17 10 5 7 7

10 15 20 25 30 10 15 20 25 30 0 5 0 5 CDS CDS 4 6 4 6 BAND

AMBIVALENT MUSIC FANS CONSUMER DIGITAL MUSIC ALBUMS ALBUMS DIGITAL DIGITAL 3 5 2 1 4 1

DIGITAL DIGITAL TRACKS TRACKS 11 14 6 5 8 6

Purchased/Gift Copied Free/ Purchased/Gift Copied Free/

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 10% 20% 30% 40% 50% 60% 70% 80% Consumers DOWNLOAD RETAILERS DIGITAL DOWNLOADSTORE/ PERMANENT 0% 68% that that have frequently or used use 75%

iTunes 74%

55%

OCCASIONALCONCERT CONSUMERS DIGITAL FANS BIGBOX FANS 65%

69%

49% Amazon MP3 63%

50%

30%

36%

41%

25%

Google Play 33%

31%

20% AMBIVALENT CONSUMERS BACKGROUND CONSUMERS AFICIONADOFANS

23%

19%

8% Xbox Music 11%

11%

3% (insound.com)

1% Insound

35%

28%

13% STREAMING EVENTS

23% AFICIONADO FANS AFICIONADO

30%

10% 20% 30% 40% 50% 60% 70% 0% DIGITAL FANS DIGITAL 52% 53% Concert 58%

23%

42%

BACKGROUND CONSUMERS BACKGROUND 31%

56% Sporting 41%

event 54%

55%

33%

32%

34% Newscast

17%

26%

27%

34%

26%

20% OCCASIONAL CONCERT CONSUMERS CONCERT OCCASIONAL television 39%

show Live 39%

27%

21%

19%

28% Political 17%

event 13%

30%

35%

10%

Educational 20% 16%

event 13%

14%

24%

AMBIVALENT CONSUMERS AMBIVALENT 22%

conference Meeting or Meeting 20% 20%

12%

25%

26%

18%

13% Other live Other 11%

event 15%

23%

13%

Numberoftracks are that copied frienda from 5

4 OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO

that are thatare free downloaded Numberoftracks (files) directlyfrom websitea 5

Numberoftracks are that "streamripped"from 1 online online sitesradio

AMBIVALENT CONSUMERS DIGITAL FANS 1

Numberoftracks are that from sitesfromlike YouTube "videostreamripped" 2

that that have frequently or used use 23%

20%

22%

6% Pirate Bay 12% 13%

12%

9% 12%

4% Torrentz 8% 11%

8% 9%

OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO 5% BearShare 8%

6% 10%

11%

5% FrostWire 10%

4% 10%

9% 5%

3% Torrents 6% Kickass

AMBIVALENT CONSUMERS DIGITAL FANS 1% 7% IsoHunt

ExtraTorrent 3% 3%

0% Shareaza 5%

FUNDING THE BAND Copyright ©2012 The Nielsen Company. Confidential and proprietary. BACKGROUND BIG BOX FANS past or tohave used it frequently. fan/ FANS, AFICIONADO DIGITAL FANS, and AMBIVALENT CONSUMERS expressed the mostinterest in participating in a INTEREST IN CONSUMERS DIGITAL FANSDIGITAL AMBIVALENT CONSUMERS OCCASIONAL CONSUMERS AFICIONADO CONCERT FANS crowdfunding 2% 3% 2% 4% 4%

6% 4% Unaware, Unaware, interested frequentlyUse

13% campaign. FANS AFICIONADO significantly higher likelihood tohave used 9%

10%

13%

21% 13% 24% DIRECT

11%

25% 24%

- TO 13% Aware, notAware, interested usedHave

- 12% 35% 14% FAN/

CROWDFUNDING 75% 70%

10% 55%

direct 48%

47% Unaware, Unaware, interested not interestedAware,

- to - fan/ 26% crowdfunding

direct

in the in the - to - 33

Copyright ©2012 The Nielsen Company. Confidential and proprietary. high high and prior awareness 45+. those waslow among more likely toreport having participated in Interest in INTEREST IN 13-17 18-24 25-34 35-44 45-54 55+ direct 3% 2% 2% 4% 5% 6%

Unaware, Unaware, interested frequentlyUse - 5%

9% 13% -

fan/

12% 9%

10% crowdfunding 16%

DIRECT 5%

21%

among among 30% 9% 24% 23%

a directa

those 44 and and younger44 those wasconsistent ageacross groups, though 25 those

- TO - to

- fan/ - Aware, notAware, interested usedHave FAN/ crowdfunding 12% 23% 12% 19%

CROWDFUNDING

campaign 79%

70% . Disinterest in

47% Unaware, Unaware, interested not interestedAware, 41% 41% direct

- to - fan/

- crowdfunding

BYAGE - 34 34 were

was

9% that that have frequently or used use

- 10% TO

3% Indiegogo 6% -

FAN/ 3%

4% CROWDFUNDING RocketHub 3%

OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO 3%

3% ArtistShare 3%

3% Pledgemusic 5%

1% /PLEDGE /PLEDGE

1% 2% Pozible

AMBIVALENT CONSUMERS DIGITAL FANS 1%

2% SellaBand WEBSITES 1%

Fansnextdoor 3% 1%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. Scenarios Likely in Scenarios Which One is to Fund the exception friend of if a or family fanwasa member and invited or band if them, the wasestablished. FANS AFICIONADO wassignificantly morelikely to contribute toa LIKELINESS TO FUND GIVEN CIRCUMSTANCES 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 42% listen to their 83% Friend Friend or Family & Family

70% music

24%

27%

72%

28%

don'ttolisten their their music 58% family but Friend Friend or

54%

19%

17%

50%

36%

68%

Accessto exclusive content

54%

15%

44%

38%

64% donate todonate Bandwill charity

52%

20%

42%

direct 33%

favoriteband Funds Funds next 66% project of

50% - to

13% - fan/

11%

40% crowdfunding

34% Early toEarly access

band's band's album 61% favorite

49%

15%

10%

33%

campaign in mostcircumstances, with AMBIVALENT CONSUMERS AMBIVALENT CONSUMERS CONCERT OCCASIONAL CONSUMERS BACKGROUND FANS DIGITAL FANS AFICIONADO BOX BIG FANS

23%

family invited 40% Friend Friend or

43% you

17%

10%

31%

20%

funding funding their nextproject Established 39% band band is

37%

12%

8% 21%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. Maximum pledge to campaign a with appealing content campaign, they they’d said likelypledge moremoney year,per indicating potentiala tocontribute to more campaigns. and maximumpledge an annual FANS $67, While of AFICIONADO of $116. maximum they said werelikely tospend per less AMBIVALENT CONSUMERSMUSIC are willing to spend money on PLEDGE AMOUNTS $100 $120 $140 $20 $40 $60 $80 $0

$19

$48

$30

$67

direct $100 $120 $140 Maximum amount pledged yearin a $20 $40 $60 $80 $0 - to - fan/

$88 crowdfunding

$146

campaigns, with campaigns, with an average

$96

$116

Copyright ©2012 The Nielsen Company. Confidential and proprietary. Maximum pledge to campaign a with appealing content highest annual maximum,indicating interest in perhaps pledging more often to campaigns. While averagepledges forwere 25+ those similar, PLEDGE AMOUNTS $100 $120 $140 $160 $180 $200 $20 $40 $60 $80 $0 13

$19 - 17

$22 - 24

$40 - 34

$36 - 44

$35 - 54

55+ $26 -

those 35 those BYAGE

- 44 reported an annual $100 $120 $140 $160 $180 $200 Maximum amount pledged yearin a

$20 $40 $60 $80 $0 13

$50 - 17

maximum66% $91 - 24

$109

- 34

$183 higher higher than the second - 44

$110 - 54

55+ $79

TECHNOLOGY AND MUSIC Copyright ©2012 The Nielsen Company. Confidential and proprietary. OCCASIONAL OCCASIONAL CONCERT CONSUMERS INTEREST IN MUSIC RECOMMENDATION ENGINES BACKGROUND BIG BIG BOX FANS AFICIONADOS DIGITAL DIGITAL FANS CONSUMERS AMBIVALENT CONSUMERS Unaware, Unaware, interested frequentlyUse 2% 4% 4% 6%

10% 9%

11% 18%

16% 11%

8% 23%

12% 34% 8%

14%

17%

Aware, notAware, interested usedHave 7%

20%

13% 15% 7%

27%

44%

15%

20% 15%

27%

11% Unaware, interestedUnaware, not interestedAware,

35% 34% 31%

23%

21% 18%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. would be to would livebe without rankConsumerssmartphone owna who features smartphone hard by how they RANKING SMARTPHONE OF FEATURES Listeningto yourtothat you yourmusic own downloaded Watchingnon WatchingYouTube on videos music or Listeningtothat music you stream throughyour phone Posting readingand updates social on Takingbuilt withphotosvideos and

- music videos on YouTube on videos music or Browsing internet/websites Texting/messaging email/ Maps and GPS NavigationMaps and Talkingcalling)(voice Playinggames

Vevo

Vevo -

in camerain applications

or elsewhere

or elsewhereor

phone

that that have frequently or used use 60%

47%

57%

63%

28% iHeartRadio 31%

28%

23%

25%

20%

9% 20%

Last.fm 17% OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO

11%

7% SlackerRadio 13%

11%

10%

4% TuneInRadio 6%

5% AMBIVALENT CONSUMERS DIGITAL FANS

2% 3%

Blip.fm 4%

1% 2% OurStage

YouTube 96%

84%

90%

92%

for videosYouTube music 77%

89%

OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO 86%

67%

72%

76%

74% for YouTube non-music 88%

76%

videos 65%

74% AMBIVALENT CONSUMERS DIGITAL FANS

79%

24% 34%

27%

Vevo 16%

24%

27%

that that have frequently or used use 22%

16%

22%

25%

18% 31%

Spotify 25%

16%

24%

5% Grooveshark 12%

8% OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO

7% Sony Sony Music 8% Unlimited

4% 3%

3% Rdio

1% AMBIVALENT CONSUMERS DIGITAL FANS

2% 4%

3% MOG

2% 2%

Qriocity 3%

22%

19% Shazam

13%

OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO 8%

12%

SoundHound

10%

AMBIVALENT CONSUMERS DIGITAL FANS 3%

TuneWiki 5%

64%

58%

OCCASIONAL OCCASIONAL CONCERT CONSUMERS DIGITAL FANS BIG BOX FANS 57%

59%

73% 66%

laptop PC 76%

56%

63%

67%

8% Mac/Applelaptop

14%

10%

AMBIVALENT CONSUMERS BACKGROUNDCONSUMERS AFICIONADOFANS 5% Mac/Appledesktop

9% computer

10% Digital MediaDigital Receiver: 15% Apple TV, Roku,

Slingbox, etc.Slingbox, 13%

31%

22% iPhone

OCCASIONAL OCCASIONAL CONCERT CONSUMERS DIGITAL FANS BIG BOX FANS 21%

17%

22%

34% Mobilethatnotphoneis a

35% smartphone

37%

40%

48%

43%

28%

43% Android phoneAndroid

30% AMBIVALENT CONSUMERS BACKGROUNDCONSUMERS AFICIONADOFANS

22%

28%

25%

10% Smartphone,other than

iPhone and iPhone Android 12%

16%

13%

11%

44%

35%

38%

37%

OCCASIONAL OCCASIONAL CONCERT CONSUMERS DIGITAL FANS BIG BOX FANS 26%

iPod, iPhone,iPod, or Speakers that directlytoan 39% you you connect

31% iPad

17%

20%

26%

20%

Sennheiser, Bose, Beats Beats Dr.Dre,by headphones forheadphones music music as (such 29% Specialized

27% etc.)

14%

20%

12%

directlyfrom the music music streamed Stereo system that can play 11%

internet 15%

12%

8% from onlinefromsites such YouTube such as Smart TV TV thatSmart videosdirectly 17% can can stream and Netflixand AMBIVALENT CONSUMERS BACKGROUNDCONSUMERS AFICIONADOFANS

14%

13%

11%

10%

11%

iPod, iPhone,iPod, or bluetooth to an Speakers that 14% you you connect

through 13% iPad

34% player - other 30% iPod/iPhone audio/MP3

Portable than than an 27%

25%

38%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. A smartphonesA is primarymy entertainmentdevice -toit's my go Somewhat/Strongly Agree with statements about technology OPINIONS TECHNOLOGYABOUT I am typeI am the likes of person that to keep mementos ofspecial Texting/messaginghelps me connected to stay to friendsand devicesocial for connections, music, etcvideos, games, BACKGROUNDCONSUMERS BIG BOX FANS It is important It important is tome to always latest have the technology I keep up withI keepup myfriend's lives with media (suchas social Email helps metostay connectedtofriends and family events, such as events, such ticket birthday stubs, etc cards, Facebook,Twitter, ) MySpace, Tumblr, etc I would becompletelyI would lostwithouta smartphone I am I am theoften totryfirst new technologies family OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO

24% 28% AMBIVALENT CONSUMERS DIGITAL FANS 29%

32% 32% 32% 33% 34%

35% 35%

36% 37%

39%

45%

47% 47% 49% 50% 50% 51%

53%

54% 54% 55% 55%

57%

58%

62% 63%

64% 64%

67% 68% 68%

69% 69% 69%

72% 73%

74%

76% 78%

79% 79%

80% 80%

82%

88%

Copyright ©2012 The Nielsen Company. Confidential and proprietary. 100% Consumers SOCIAL NETWORKING WEBSITES 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% BACKGROUNDCONSUMERS BIG BOX FANS 84% 92% Facebook that that have frequently or used use

90%

81%

87%

86%

48% 61%

Twitter 60%

34%

32%

51%

45%

51% myspace

44% OCCASIONAL OCCASIONAL CONCERT CONSUMERS FANSAFICIONADO

32%

35%

42%

33% 34% Pinterest

43%

32%

33%

39%

13% 25%

Tumblr 25%

12%

13% AMBIVALENT CONSUMERS DIGITAL FANS

20%

9% 20%

18% Reddit

14%

10% StumbleUpon 16%

20%

16%