1. MidemNet :: Saturday 17 th January 2009 Voice of the fans........

2. Clients

3. Survey Overview........ Major label fan database France, UK, US Over 1300 music fans Conducted October/November 2008 Artists & Fans, Filesharing and Business Models

4. Artists and Fans........

5. Keeping Informed Importance of direct communication Don’t forget Google Adwords

6. Artist Merchandise

7. Interest in artist based subscription models Opportunity for labels and managers to develop more artist-specific subscription services

8. What fans want from an artist subscription model Fans value practical, tangible benefits most highly

9. Death of the album greatly exaggerated? Fans claim they like albums as they are

10. Filesharing / Sharing........

11. Are you worried about being caught for file-sharing? France bucks the trend on filesharing fears

12. If you received a letter from your ISP warning you about file-sharing would you stop?

13. If you were threatened with your broadband/ ISP being shut off would you stop file-sharing? Threat of disconnection not much more effective than warning letters

14. If you received a letter from your ISP warning you about file-sharing would you stop? If you were threatened with your broadband/ ISP being shut off would you stop file-sharing? Base: File-sharers (19% of total sample) Disconnection threat has more effect when just looking at filesharers

15. Business Models........

16. Digital Behaviour Trend towards access based services rather than ownership

17. Which of the following would you prefer to get your music provided by? ISPs are number one choice as digital music provider

18. Preferred ‘unlimited music download service’ 1.Phone/PC based service from mobile network 2.Phone/PC based service from mobile handset manufacturer eg Nokia Comes With Music 3.Annual up-front PC based subscription eg Datz music lounge 4.Free from ISP/mobile network but tied to that provider eg TDC Denmark 5.Rental-based subscription eg MusicStation, Napster Once again the ISP based model is the most popular

19. Key Findings – Artists & Fans........ Artist website and direct communication from the artist most important Continued relevance of MySpace Importance of Google (including Youtube) Interest in artist subscription models – practical benefits Opportunity to convert more fans to regular merchandise purchases

20. Key Findings – Filesharing........ Evidence that warnings would have a significant impact on behaviour (only 9% of survey would ignore a warning, with France the most defiant at 14%) The difference between a simple warning and threat of broadband cut-off most obvious when we look at filesharers only (41% would stop for warning, 63% for cut-off threat) Younger respondents are the most worried, message getting through?

21. Key Findings – Business Models........ Trend towards access rather than ownership, can this be monetised? When looking for providers of music services, ISP and cable/satellite most popular, yet least developed services to date Business models – TDC/Datz type approaches most favoured (ISP again!) - Hardware-bundled (eg Comes with Music) type approach least popular currently, a marketing challenge?

22. 22 Thanks! Contact: Tim Walker:Tim@TheLeadingQuestion.com T: +44 (0)162 847 7833 www.TheLeadingQuestion.com