Brad Duea President, Napster

What Customers Want  Own / keep musicDRM-Free –save, copy, burn, share  Plays anywhere –On all MP3 players and music phones –Including iPod/iPhone  Unlimited access/discoveryOn-Demand –On-demand streaming Streaming –Radio you control  Large catalogOver 9 million songs –All the majors –Hundreds of indies  Reasonable price$5 -10 –5 $1.29 each= $6.45 –1 month streaming = $12.95 $19.40 * No extra payments per piece of hardware like XM Sirius Source: “Front Page” study done by Communispace for Best Buy, Dec. 17, 2008

We listened! 5 for $5 began 5/19/09 5 MP3s per month that can be saved, burned and copied Unlimited streaming of over 9 million songs MP3s Play on any MP3 compatible device, including iPod® & iPhone® Available since 5/19/09 in four versions:

Positive Response: "Seems like a no-brainer to me." "How did Napster do it? It bowled one ball but managed to land strikes in three lanes." "Napster is moving the cheese the way it did during the brand's renegade peer-to-peer days. The only difference now is that it's moving it legally and brilliantly." "I can see why this works well for Best Buy." “ Compared to buying five songs per month from iTunes, Napster ’ s new offering represents a fantastic value. ” "Looks like the bad boy of internet music sharing has finally grown up."

#1 Question from the Field:  Does Napster work with iTunes/iPod/iPhone? iPod + iTunes Napster + iPod + iTunes + everything else too! YES!

Demo: Streaming & iTunes Integration

Feedback from the Field & Corporate: Need:  Show customers how Napster works  Compelling promotions/bundles  Updated UI—cleaner and easier to buy tracks  Mobile application  Home theater integration (Connected CE)

We listened! New for Holiday:  Listening Stations (& IPTV Widget)  Dell “Comes with Napster” Promotion  Updated Look—Across 3 Screens  Mobile Application  IPTV Widget

NEW: Listening Station Endcap – Demo Napster All 1,000 Stores by Mid October Black Friday promo too!

NEW: Dell Promo

 PR Announcement: Oct. 2 at Austin City Limits  Available: October 22, 2009 through January 17, 2010  Territories: US, UK, Germany Dell: Easy for customer to redeem free Napster offer!

Web/Desktop Phone Living Room MP3 Player NEW: Updated Look--Across 3 Screens, 1 Account

NEW: PC  Oct. (Beta)  Jan. (Final)

NEW: Napster Mobile Application -- Sept. 2, 2009  Most web-enabled phones from most carriers  Text “napster” to or go to m.napster.com

NEW: Mobile Prepaid Cards--Easy for Customers 1. Buy card 2. Redeem on phone3. Download songs 4. Unlimited streams and MP3 copies on PC

NEW: Napster TV Widget “Millions of songs on the best speakers in the house”  Discover and play new music quickly  Set a mood, add background music or start a party  Access and play your personalized playlists

In-Store: Magnolia and Home Theater -- October  Prepaid Cards in Home Theater  Demo Napster on Samsung IPTVs –Magnolia (1 TV Vignette) –Core (HT-7 Endcap)

Video: Napster Everywhere

Napster Employee Accommodation Program Offer: 6 months of unlimited streaming and 30 MP3s for $ % off retail price! Sign up: 1) 2) Fill out information and receive with promotion code 3) Go to enter promotion code and enjoy! $1.67 per month $10