CONFIDENTIAL

Presentation to ICOLC

San Diego, September 15, 2003

Classical Music Library:The right kind of noise

in your library

CONFIDENTIAL

This Presentation Covers …

• What and Who is Classical International?

• How does the service work?

• Licensing & Pricing

• Role of Consortia

• Future Plans

CONFIDENTIAL

Classical International:Brief History

1999 • Company was founded and currently has offices in London and New York.

• Developed our first website offering web users the chance to sample and buy classical music

2001 • First subscription service was launched and offered monthly subscriptions to listen to classical music. In December we added the ability to buy music both as downloads and on custom CDs

2002 • Béla Hatvany and Ron Rietdyk, two of the 3 founders of Silver Platter Information join Board of Directors. Ron Rietdyk becomes Chairman

2002-2003 • Library service formally launched at the Online Information Show in London in December 2002 & ALA mid-winter 2003

CONFIDENTIAL

Classical International:Brief History (continued)

2003 • March: Manhattanville College becomes first subscribing library in USA

• April: McGill University becomes first subscribing library in Canada

• April: Gateshead Public Library system becomes first subscribing library in the UK

• April: Inje University becomes first subscribing library in Korea

• August: Classical Music Library has won 'Best New Effort' category in the Charleston Advisor's Third Annual Reader's Choice Awards.

• September: Classical International honored to accept invitation to address ICOLC meeting in San Diego

CONFIDENTIAL

Classical International:Mission

• Our mission is to enable libraries to better serve their patrons by enabling the streaming of classical music (and other types of rich media) directly to patrons both within the library and remotely.

• We want to achieve this by offering a richer integrated service that allows patrons to LISTEN to recordings and LEARN more by reading associated programme notes and biographies, while protecting all copyright holders.

• Our service is specifically designed to be accessible to the widest range of patrons. We aim to achieve this by:

– Enabling access through any computer

– Providing an easy-to-use and intuitive interface

CONFIDENTIAL

Classical International:Key Staff

• Ron Rietdyk (Chairman) – Ron has a long history of working in the library market, including managing Silver Platter for 9yrs, and is currently also Chairman of Alexander Street Press.

• Roger Press (EVP Content & Business Development) – Roger started up the Classical Video Division of EMI and drew upon extensive recording industry experience to launch Classical International.

• Janice Kuta (Senior VP Sales & Marketing) – Previously President of Macmillan Online Publishing, Janice was part of the team that launched 'The Grove Dictionary of Music and Musicians’,'The Grove Dictionary of Art’ and Nature Online journals.

• Mike Dupler (VP Global Distributor & Consortia Relations) – Mike has spent his entire career working in the information industry, including companies like CSA, Ovid, EBSCO and Ebrary.

CONFIDENTIAL

How does the service work?

FIRST OF ALL & MOST IMPORTANTLY

CONFIDENTIAL

IT’S LEGAL!!

• Some of our 12,000 tracks of music are owned outright by Classical International

• The music we license fully protects all copyright holders

• We track and pay all applicable royalties

CONFIDENTIAL

Class of 2003- Courtesy of RIAA

CONFIDENTIAL

How does the service work?Features of Classical Music Library

A subscription to the Classical International service offers you:

• 12,000+ individual classical music recordings for listening on demand.

• The number of recordings is growing daily and Classical International is in discussion with all five major record labels. We expect to announce a licensing agreement with our first major label this month.

• 200+ themed 1-hour playlists arranged in easy-to-browse categories. All playlists are customizable by library staff, faculty and patrons.

• Key composer and artist biographies, including links to related composers and images.

• 1,850+ program notes on key works and movements.

• Remote access at no extra charge

CONFIDENTIAL

How does the service work?Searching

• Simple searches can be entered from the top of every page.

• An Advanced Search option offers greater flexibility on searching.

CONFIDENTIAL

How does the service work?Browsing

• Patrons can also browse our music using a wide range of easy-to-use categories e.g.

– Composer– Artist– Instrument– Genre– Period

– Music Label.

• Browse results can be filtered for greater precision e.g. Composer ‘Mozart’ and then Genre ‘Concerto’.

CONFIDENTIAL

How does the service work?Listening

• Users can listen to every individual track or playlist.

• Clicking on the play icon loads the Classical Player, offering access to more information about the music.

CONFIDENTIAL

How does the service work?Themed Playlists

• The service comes with 100s of themed playlists.

• Easy-to-use categories, such as:

– Artistic Movements

– Artists

– Composers

– Genre

– Instruments.

• Each playlist can be saved and edited by patrons.

CONFIDENTIAL

How does the service work?Custom Playlists

• Registered patrons can create and save their own custom playlists.

• Build from scratch or edit a Themed Playlist.

• Playlists can be shared with other patrons or students.

CONFIDENTIAL

How does the service work?Reference

• Patrons can access information on

– Composers Biographies

– Composer Images

– Musical Periods

– Musical Glossary.

• Biographies offer links to the composers music + related composers.

CONFIDENTIAL

Licensing & Pricing:General

• Classical Music Library is available by annual subscription with pricing for Academic, Public, School and Special Libraries.

• Subscription price based on the number of Simultaneous Users you wish to support at your library.

• 'Simultaneous Users' = the number of people logged on to the service at any one time.

• The product is available in 2 formats: Direct Service and Local Service

CONFIDENTIAL

Licensing & Pricing:Direct Service

• Delivers all content direct from the Classical Music Library servers

• Fast and Easy to set-up

• Suitable for Libraries considering fewer than 30 Simultaneous Users

Simultaneous Users Annual Licence Fee

3 $995

5 $1,695

10 $3,295

15 $4,995

20 $6,595

30 $9,895

CONFIDENTIAL

Licensing & Pricing:Local Service

• Delivers the music (streaming) content from a local library server, with all other content served direct from Classical Music Library servers

• As the Library is responsible for purchase of the server and the bandwidth cost of streaming music, Classical is able  to pass on significant savings

• Recommended for Libraries/Consortia considering greater than 30 Simultaneous Users

Simultaneous Users Annual Licence Fee

30 $9,395

40 $11,195

50 $12,895

75 $17,195

100 $21,495

CONFIDENTIAL

ICOLC- DIRECT SERVICE OFFER

• Direct Service Offer

• 1. Direct @ 15% Distributor Discount

• Individual libraries subscribe directly or through distributor on rolling basis.

•

• 2. Direct Group Discount @ 20% Distributor Discount

• We offer a higher discount of 20% where a group of libraries purchase 30 SUs or more of the Classical Music Library Direct Service.

• To qualify for this discount, all the SUs must be purchased by an agreed upon deadline (universal date) between CML and distributor.

CONFIDENTIAL

LOCAL SERVICE OFFER

• Local Service Offer @ 20% Distributor Discount

• The larger the number of libraries aggregated, the lower the cost per SU.

• Available for libraries or consortia that wish to purchase 30 SUs or more, and who can manage a local server.

• Classical International configures the Local Server, provided by the library, to be a copy of our own Streaming Servers, and one or more libraries within the consortia then maintain it. This is not technically difficult and should be straightforward for any organization that already manages its own servers.

CONFIDENTIAL

CHARTER SERVICE OFFER

• Charter Subscriber Offer

• All institutional customers that subscribe to the service by December 31, 2003 will receive an additional 3 months on their subscription.

• This translates into a 20% discount for $995.00 or 3 SU customers.

• The customer can be invoiced in 2003, but have the service start in January 2004, if they want.

• As with any offer, we will reserve the right to extend into 2004.

CONFIDENTIAL

Licensing & Pricing:Local Server Configuration

• The server in installed inside the library’s network, and made available on a public IP address. Classical International provides the media files to be installed on the server and some additional propriety software.

•  The server uses a standard setup of Windows 2000 or 2003, with some additional software that allows Classical International staff to administer the server and its media files remotely.

Hardware 2 x 1Ghz+, 1GB RAM, 250 GB available storage (for up to 50,000 tracks), Separate OS drive recommended, DVD reader (for loading new repertoire), Redundant PSU recommended

Software Operating System - Windows 2000 / 2003 server, Windows Media Services, VNC for remote connections

Connectivity We require a ssh2 or sftp connection into the media server

Connection A T1 line (1 Mbps) will cope with roughly 45 simultaneous users at standard quality (22kbps) streaming.

CONFIDENTIAL

Role of Consortia:Benefits available

Direct Service • Discounted price per SU - typically 15%

• Increases to 20% when 30 SUs or more are purchased at

once by one or more libraries

Local Service • Earn greater revenue – 20% discount  

• Greater volume savings per Simultaneous User

• Share Simultaneous User capacity - members of a

‘consortial pool’ can ‘borrow’ available SU’s from the total

if their usage peaks at a particular time.

CONFIDENTIAL

Role of Consortia:Pricing & Promotion

• Determine the “fair” number of SUs for each subscribing library.– Classical provides usage reports (working towards ICOLC standard)

– Consortium is invoiced for all participating members

• Offer to members via standard methods (ie. Web site, mailings, etc..)

CONFIDENTIAL

Future Plans

• * MARC records for recorded “works”– a. Plan to create a record for each individual track or “work”

– b. Working with our advisory group as well as other music librarians to define just how this will be done.

• Other Musical Genres—eg. “World” music, Jazz, Blues, etc..

• Collaboration with Byron Hoyt – links to more than 7000 scores under the ebrary platform

• Collaboration with Oxford University Press- Links to Grove Music Dictionary

• Additional Music Collections such as Jazz and World Music

CONFIDENTIAL

Contact Us

• To arrange a free 30 day trial, or to ask any further questions, please contact us using any of the following methods:

Libraries inNorth America

Libraries outside North America

(contact Mike Dupler)

Telephone: 1-800 859 9306 (Toll free) +1 212 689 0536

Email: libraries@classical.com mike@classical.com

Web: www.classical.com

Address:

Classical International Inc.222 East 46th Street, Suite 403New York, NY 10017USA