Michele Amar-OuimetDirectorFrench Music Export Office New YorkCurrents and Cross-Currents in Digital Music Distribution ______________________________________________________________________________

Riding the new digital waters as the currents change The global cultural changeThe timing of industry changeOur new opportunities

The Dilemma of DigitalAccessibility to digital musicThe advantages of digitalThe listeners preference

StatisticsAt least 90% of music consumption is illegalConsumer spending forecastsPhysical vs. Digital sales YTD

Marketing in the Digital WorldA new model of marketingAdvantages in the digital realmIndependent Label innovation

Opportunity for IndependentsTHOUSANDS OF INDEPENDENTSHUNDREDS OF DIGITAL SERVICESMILLIONS OF MUSIC FANS

Digital Music TrendsThe World of AppsSubscription ServicesPublishing Platforms

New Ways How Digital is Helping Smaller LabelsD.I.YProfit structureIndependenceFar-Reaching Potential

Global OpportunityThe Digital Marketplace opens up a worldwide audience and marketNew fans and revenue for indiesMusic from anywhere to anywhere in the world

Tim Mitchell - this slide looks like too much -

i feel like we should break down into "high level" like integrity and scalability and then perhaps go into "tactics" with the technology stuff on another slide - sort of - this is our competitive advantage, and this is how we get there: technology does the heavy lifting and we can concentrate on relationships and service

Where Physical Cannot GoInventory advantageGetting artists paidPromotionAccessibility through Aggregators

Democratization of Digital Media ContentReduced Cost of Production & Distribution

IODA at a GlanceIODA develops and hosts distribution, marketing, and back-office technology services that allow independent content owners to operate and manage their digital media businessFounded in San Francisco in 2003Market LeaderOver 1 million tracks from several thousand labels in over 50 countries100+ service and promotional partners over 350 retail outlets75 full time employeesFortune Magazines 25 Breakout Companies 2005

Global PresenceLEGEND:

Comprehensive SolutionDISTRIBUTIONMARKETINGBACK-OFFICE

IODA Digital Distribution$10B DIGITAL MUSIC MARKET IN 2010THOUSANDS OF INDEPENDENT RIGHTSHOLDERSHUNDREDS OF DIGITAL MUSIC SERVICESDIGITAL CONTENT AGGREGATIONEfficient in-house encoding and delivery supply chain Strong relationships with Indie-focused programmersCreative retail marketing plans for developing artists

Over 350 Outlets WorldwideOver 50 additional priority deals in negotiation, 100+ on deck

D3 (D-Cubed)D3 = Digital Distributor DashboardWhite Label Platform for CD DistributorsCo-Branded Interface and MessagingIntegrated Accounting and ReportingTwo-tiered Marketing and Promotions SupportCatalog GrowthClients: 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-OfficeEncoding/ProductionInventory/MetadataScanningRippingTranscodingRightsholder DashboardContent ManagementLicense ManagementRoyalty ReportingService DeliveryContent FeedsNetwork and Hard DriveData Exchange

Rightsholder Dashboard

Royalty Reports

Value to Content OwnersFull Technology SolutionComprehensive and Broad Market Reach Market Experience & Negotiating PowerEasy-to-use Online Tools for Complete Business Control and Transparency (ASP)Promotional Network and Intelligent, Transparent Marketing ServicesExpanded Revenue Base with Minimal Startup Expenses

Value to Digital RetailersOne License for Thousands of IndiesComprehensive, Diversified CatalogTimely Delivery of Clean Metadata and Media Marketing Support and Filter with SPOCReduced Administration and Reporting Burden

IODA Digital MarketingUsing technology to connect music with fansBringing scalability to a rolodex-based businessDriving Digital and Physical Sales for LabelsIntelligence-driven Marketing Campaigns

FANSMICRO-MARKETERS/ PROMOTIONAL PARTNERSSALES

Digital Music DiscoveryInside the Music StoresBrowseSearchRecommendRelateCollaborative FilteringRadioCommunity/PlaylistsPersonalization

Tim Mitchell - this slide looks like too much -

i feel like we should break down into "high level" like integrity and scalability and then perhaps go into "tactics" with the technology stuff on another slide - sort of - this is our competitive advantage, and this is how we get there: technology does the heavy lifting and we can concentrate on relationships and service

Digital Music DiscoveryOutside of the Music StoresBlogs and PodcastsWeb RadioZines and Review SitesCommunity/Social Networks

Tim Mitchell - this slide looks like too much -

i feel like we should break down into "high level" like integrity and scalability and then perhaps go into "tactics" with the technology stuff on another slide - sort of - this is our competitive advantage, and this is how we get there: technology does the heavy lifting and we can concentrate on relationships and service

Blogs and PodcastsEmbedded code creates distributed affiliate network

Social NetworksCommunity-focused promotional partnerships

Building CommunityPromotional data integration manage once, publish everywhere

International Music DiscoveryThe ProblemInternational Discovery Today What is World Music? The Potential Why its ImportantFor Indie and Niche MusicFor the WorldOne Solution A Simple, Data-driven Concept

Tim Mitchell - this slide looks like too much -

i feel like we should break down into "high level" like integrity and scalability and then perhaps go into "tactics" with the technology stuff on another slide - sort of - this is our competitive advantage, and this is how we get there: technology does the heavy lifting and we can concentrate on relationships and service

Region Filtering

Region Filter: China

Region Filter: China

Region Filter: China

Chinese Folk

Private Label StoresDirect to ConsumerLabel and Artist to FanIndie Labels have brand and followingSatisfy the customer at their point of discovery and interaction

Six Degrees Shop

MSO Symphony Store

Thank You.

Digital Opportunity for IndependentsUnlimited shelfspace enables indies to reach new audiences around the worldTraditional barriers of distribution and media access broken down. World Music What does it really mean? History created 20 years ago to market the musicWhat it means todayExpanding Horizons lessons from growth of IODA catalogUS labels - Nave and amazed at all the US labels we didnt knowInternational labels - as we got international even more amazed. A Global Business digital music is no longer territorial like the old school music business It doesnt make sense to replicate systems for encoding, delivery, and licensing across territoriesPortable devices and digital service providers leads to greater consumptionFalling prices and format interoperability drives down piracyIncreases in digital sales leads to greater scale replacing inefficient marketMarketing music becomes a technology driven business with scale

Over 80 retail partners have been added in 2005, and IODA continues to seek out strategically important sales channels with a variety of business models and markets. We are increasingly going into the legal Peer to Peer, International, and Mobile markets.

Thousands of Indies = Prohibitive content acquisition time and cost, administration Incomplete Catalog = Unfulfilled Customers, Lost Sales, Missed OpportuniesPassive Rightsholders = Slow Publishing Cyles and Missed Street DatesThousands of Indies = Prohibitive content acquisition time and cost, administration Incomplete Catalog = Unfulfilled Customers, Lost Sales, Missed OpportuniesPassive Rightsholders = Slow Publishing Cyles and Missed Street DatesIODAs platform will connect a diverse user base with content through traditional online channels as well as enable new models for content discovery and consumption. These models will include diverse communities where users can virally recommend and share content.

Inside the servicesOverview of how this is done in todays services (iTunes, Rhapsody, etc.)Front page retail merchandisingNew Releases, Just Added, ChartsEditorial recommendationsReviewsSpotlightsSimilar artists influences, contemporaries, followers, relatedcollaborative filtering (people who bought this bought this)Genre BrowsingExternal to the servicesRadio Pandora, lastFM, Soundflavor, Live365Communities/Social Networks LastFMBlogs, PodcastsZines/ReviewsInternational Music DiscoveryNot covered by any of these effectively. The problem with World MusicHistory of World MusicImportance of International Discovery high level look at value of music globalizationPotential to connect culturesArt leading commerce in cross-cultural communicationMusic as leader of globalization trendsThank You