Michele Amar-Ouimet Director 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 OF MUSIC 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 OFFICESCONSULTANTSDISTRIBUTORS (D3)PARTNERS LEGEND:

Comprehensive Solution DISTRIBUTION MARKETING BACK-OFFICE

IODA Digital Distribution $10B DIGITAL MUSIC MARKET IN 2010 THOUSANDS OF INDEPENDENT RIGHTSHOLDERS HUNDREDS OF DIGITAL MUSIC SERVICES DIGITAL CONTENT 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

D 3 (D-Cubed) D 3 = 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/Production Inventory/Metadata Scanning Ripping Transcoding Rightsholder Dashboard Content Management License Management Royalty Reporting Service Delivery Content 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 FANS MICRO-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

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.