Digital music report 2014

Where are we heading

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World Travel Report 2014

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Alexander Bartlic, July 2014

Meet the experts

Erin WatsonCEOShe is the 3rd executive to lead the company since the company was founded in 1996.

Nick MillerDeveloperNick Miller has been a software writer and developer since 1996. His languages and technologies include: Ajax

Jack HolmesMusicianJack Holmes is more than just your typical man from Mongolia with a 5 foot handlebar mustache. He’s also quite possibly the best backwards yodeler in all of Asia.

Our team

Subscription model Listening services Returning customer

Streaming is the new black

Streaming and subscriptions surge Subscription services, part of an increasingly diverse mix of industry revenue streams, are going from strength to strength. Revenues from music subscription services — grew by 51.3 per cent in 2013, exceeding US$1 billion for the first time and growing consistently across all major markets.

It’s growing rapidly

Global digital music revenue from 2004 to 2013 (in billion U.S. dollars) - 5.9 billion US Dollars

• Norway is leading streaming music market worldwide with 48%

• Spain ranked as the second biggest music streaming market in the world

• Japan is much below the market average scoring 15% worldwide

Here are the facts

2014

All the plans will be presented during our annual meeting on January 1st 2015. Schedule as follows:

• July 2014 - drafted plans ready for revision by senior management.

• September 2014 - budget review and calibration of the plans.

• December 2014 - final plan submission and corrections being made.

Planning schedule

Streaming and subscriptions surge Subscription services, part of an increasingly diverse mix of industry revenue streams

▪ Norway is leading streaming music market worldwide with 48%

▪ Spain ranked as the second biggest music streaming market in the world

Leading music streaming markets worldwide in 2011, based on penetration rates, statista.com

Leading music streaming markets worldwide

0

15

30

45

60

2011 2012 2013 2014

Norway Spain Japan

Levinson- 11%

Furlasity- 29%

14% - Baxeritas

29% - Benefica

9% - Solitary

Subscription market

Based on 2014 sales

Companies winning the

race so far

Streaming and subscriptions surge Subscription services, part of an increasingly diverse mix of industry revenue streams, are going from strength to strength

Outside the global top 10

Outside the global top 10 markets, 15 territories saw overall growth in 2013: Argentina, Central America, Chile, Colombia, Denmark, Greece, Iceland, Netherlands, Norway, Paraguay, Peru, Russia, Sweden, Taiwan and Venezuela.

15

30

45

60

2011 2012 2013 2014

Argentina ChileColumbia DenmarkGreece

Launch of the mobile appiOS application

20% of iPhone users who access online content use their devices to stream music or listen to internet radio.

Our business to business applications have a lot of expert users .

Look and feel introductionMobile app

Norway-30%

Spain - 30%

10% - USA

20% - Japan

10% - Mexico

Market recap

Digital music advantages are obvious

A diverse global market Geographically, the world music market is highly diverse, with markets growing at different speeds and favouring different consumption models. This is borne out by consumer research conducted by Ipsos MediaCT for IFPI in November 2013

A diverse global market

First plan

Second plan Third plan

$10per year

$50per year

$80per year

20 music/projects

Send an unlimited number of emails with a monthly

account.

100 market limit

20 photos/project

40 music/projects

Purchase email credits that never expire.

150 market limit

40 photos/project

80 music/projects

Use our rock solid infrastructure to power your

email marketing.

Unlimited

80 photos/project

Let’s fit a plan into your needsPricing strategy

We launched our app during a conference event in September 2014. What happened next?

▪ We dominated New York City and east coast states

▪ We moved forward into east coast states with San Francisco being on top

▪ Further domination in all states. Number #1 in our Appstore category.

Our market share on US market since September 2014.

>3M >1M >500K

70%

USA application downloadsApp downloads

2012

2013

2014

2015

2016

05.16

07.25

01.06

04.17

04.17

Milestones

$49 000 PREDICTION based on previous years.

$59 000 PREDICTION based on previous years.

0

20

40

60

80

2012 2013 2014 2015 2016

Present sales Expected sales

$32 000 sales on in the first year

$47 000 sales during the second year

$48 000 revenue in our third year operating

2012

2013

07.25

01.06

2014

2015

01.06

04.17

2016

2017

04.17

04.17

We set up our company in US.

First clients, huge growth.

Steady revenue with strong market share

Preparing for stock market.

IPO in progress. Steady growth.

Entering first markets in EU.

2012 - 2017

Our company milestones

Culture is the behavior of humans who are part of an organization.

A culture is the values and practices shared by the members of the group

The values that contribute to the unique social and psychological environment

Corporate culture is implied, not expressly defined, and develops organically over time

A

B

C

D

from NYC to Berlin

Understand your culture

Since we are a leading provider of digital services to organizations worldwide , we can bring ideas, best practices and experience.

RevenueSteady growth with fortune 500 revenues

Mobile Mobile first design is in our DNA.

TimingWe entered the

market just in time

Market ResearchWe’ve always known

that search is king

What makes us unique

Direct competition Indirect competition

Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources, such as high grade ores or inexpensive power, or access to highly trained and skilled personnel human resources.

Bleeding edge

Lundberg Easyfix

Flowebase

Squares Roundbase Fishers

3things Outbound Leaf

We believe any business has a chance to stand out. It's not just the guys in digital field who feel this way. We are facing a revolution.

Sky is the limit

75%11%

17%

We identify the most important technology mergers.

Each acquisition is for the respective company.

Sales in 2014Sales in 2013 Sales in 2015

11% sales rising maintaining market share

Sales report2013-2015

Most important impact factorsThere are five major external forces that affect our sales and marketing efforts. They operate outside of any specific organization and companies are, for the most part, at their mercy.

HR is a potential employee's first impression

Put it in writing and set expectations upfront

Screen for culture fit

Go hi-tech or go home

1

2

3

4

Keep your eye out for who you want to hire 5 „Hire slow, fire fast” - is well on its

way to becoming the favorite cliché

How to hire smart and fire smartTalent search

Market entry scenarios

First we move into Argentina, Chile and Columbia and then follow with Denmark and Greece.

Country Main market Growth Price per user Market Value

Argentina Subscription 0.45% $100 $5 000 000

Chile Streaming 1.60% $3 000 $10 000 000

Columbia Streaming 5.14% $5 000 $2 000 000

Denmark Subscription 3.56% $200 $18 000 000

Greece Mp3 8.80% $6 500 $2 000 000

A

BWe start with Denmark and Greece as a benchmark and move forward into other countries.

Country vs. Features

Outside the global top 10 markets, 15 territories saw overall growth in 2013: Argentina, Central America, Chile, Colombia, Denmark, Greece, Iceland, Netherlands, Norway, Paraguay, Peru, Russia, Sweden, Taiwan and Venezuela.

Country Subscriptions Streaming Mp3 Live Radio

Argentina

Chile

Columbia

Denmark

Greece

Sed magna nunc, hendrerit ac dui eu, convallis consequat mi. Sed quis turpis et lorem hendrerit auctor. Curabitur quis tellus ac quam luctus tincidunt ultricies nec eros. Fusce semper sagittis arcu sed aliquet.

Focus on developing a great product and don’t worry about anything else.

Start selling as fast as you can in order to see if you can add value and bring traction to the table.

Without numbers you can’t prove anything. Gather your data as soon as possible.

Track everything you can but remember that big data might make you slow down.

Develop Sell Analyse Track

Business model

7M

20%

budget35%

15%

30%

development

salaries

analytics

advertising

Investing schedule

How do we spend our money?We have a clear path when it comes to spending our budget. Tight deadlines and profit margins allow us to spend 30% on advertising.

7 Billionphone users

30MiOS user

10MiOS apps

The market is ready for us

Future projectionsA major advance of this assessment of market change projections compared with the local market is the large number of simulations.

2015

2016

01.06

04.07

$48 000 sales during the second year

$49 000 PREDICTION based on 2014

201401.06

$47 000 sales on in the first year

Available on all screensProduct growth

Erin WatsonCEO

Nick MillerSales secialist

Jack HolemsEngineer

Erin WatsonResearcher

Erin WatsonSales Executive

Erin WatsonDesigner

Erin WatsonDesigner

Erin WatsonAdvisor

Our team

Steve Jobs

“The only way to do great is to love

what you do.”

126 th St, Garden City, New York 11530-5725

Our office

contact@company.com

+001 584 745 851

facebook.com/thecompany

How to reach usContact