Michele Amar-OuimetDirector

French Music Export Office New York

Currents and Cross-Currents in Digital Music

Distribution ______________________________________________________________________________

The global cultural change

The timing of industry change

Our new opportunities

Riding the new digital waters as the currents change

Accessibility to digital music

The advantages of digital

The listener’s preference

The Dilemma of Digital

At least 90% of music consumption is illegal

Consumer spending forecasts

Physical vs. Digital sales YTD

Statistics

A new model of marketing

Advantages in the digital realm

Independent Label innovation

Marketing in the Digital World

Opportunity for Independents

THOUSANDS OF INDEPENDENTS

HUNDREDS OF DIGITAL SERVICES

MILLIONS OFMUSIC FANS

The World of Apps

Subscription Services

Publishing Platforms

Digital Music Trends

D.I.Y

Profit structure

Independence

Far-Reaching Potential

New Ways How Digital is Helping Smaller Labels

Global Opportunity

• The Digital Marketplace opens up a worldwide audience and market

• New fans and revenue for indies

• Music from anywhere to anywhere in the world

Inventory advantage

Getting artists paid

Promotion

Accessibility through Aggregators

Where Physical Cannot Go

Democratization of Digital Media Content

Reduced Cost of Production & Distribution

IODA develops and hosts distribution, marketing, and back-office technology services that allow independent content owners to operate and manage their digital media business

Founded in San Francisco in 2003

Market Leader

Over 1 million tracks from several thousand labels in over 50 countries

100+ service and promotional partners — over 350 retail outlets

75 full time employees

Fortune Magazine’s 25 Breakout Companies 2005

IODA at a Glance

Global Presence

HEADQUARTERS OFFICESCONSULTANT

S

DISTRIBUTORS

(D3)PARTNERSLEGEND:

Comprehensive Solution

DISTRIBUTION

MARKETING

BACK-OFFICE

IODA Digital Distribution

$10B DIGITAL MUSIC

MARKET IN 2010

THOUSANDS OF

INDEPENDENT RIGHTSHOLDE

RS

HUNDREDS OF DIGITAL MUSIC

SERVICES

DIGITALCONTENT

AGGREGATION

•Efficient in-house encoding and delivery supply chain •Strong relationships with Indie-focused programmers•Creative retail marketing plans for developing artists

Over 350 Outlets Worldwide

Over 50 additional priority deals in negotiation, 100+ on deck

D3 (D-Cubed)

D3 = Digital Distributor Dashboard

White Label Platform for CD Distributors

Co-Branded Interface and Messaging

Integrated Accounting and Reporting

Two-tiered Marketing and Promotions Support

Catalog Growth

Clients: Koch, Naxos, Allegro/Nail, Revolver, Shellshock (UK), Bayside (Tower), Daikisound (Japan), Synergy, Outside Music (Canada), Inertia (Australia), Suburban Home, Roads to Ruin, Southern Music, 101 Distribution, Sonic Redezvous (Sweden), KSD, Tonevender

Distributors

Back-Office

Encoding/ProductionInventory/Metadata

Scanning

Ripping

Transcoding

Rightsholder DashboardContent Management

License Management

Royalty Reporting

Service DeliveryContent Feeds

Network and Hard Drive

Data Exchange

Rightsholder Dashboard

Royalty Reports

Value to Content Owners

Full Technology Solution

Comprehensive and Broad Market Reach

Market Experience & Negotiating Power

Easy-to-use Online Tools for Complete Business Control and Transparency (ASP)

Promotional Network and Intelligent, Transparent Marketing Services

Expanded Revenue Base with Minimal Startup Expenses

One License for Thousands of Indies

Comprehensive, Diversified Catalog

Timely Delivery of Clean Metadata and Media

Marketing Support and Filter with SPOC

Reduced Administration and Reporting Burden

Value to Digital Retailers

IODA Digital Marketing

Using technology to connect music with fans

Bringing scalability to a rolodex-based business

Driving Digital and Physical Sales for Labels

Intelligence-driven Marketing Campaigns

FANSMICRO-MARKETERS/ PROMOTIONAL

PARTNERS

SALES

Digital Music Discovery

• Inside the Music Stores– Browse– Search– Recommend– Relate– Collaborative Filtering– Radio– Community/Playlists– Personalization

Digital Music Discovery

• Outside of the Music Stores– Blogs and Podcasts– Web Radio– Zines and Review Sites– Community/Social Networks

Blogs and Podcasts

Embedded code creates distributed affiliate network

Social Networks

Community-focused promotional partnerships

Building Community

Promotional data integration – manage once, publish everywhere

International Music Discovery

• The Problem– International Discovery Today – What is World Music?

• The Potential – Why it’s Important

• For Indie and Niche Music• For the World

• One Solution – A Simple, Data-driven Concept

Region Filtering

Region Filter: China

Region Filter: China

Region Filter: China

Chinese Folk

Private Label Stores

• Direct to Consumer

• Label and Artist to Fan

• Indie Labels have brand and following

• Satisfy the customer at their point of discovery and interaction

Six Degrees Shop

MSO Symphony Store

Thank You.