Soundtrckr

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Soundtrckr is geosocial music application for smartphone and the web. Users discover new music and meet new people based on where they are and what they are doing at the present moment.

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Agenda

- Trends in mobile and music market- The soundtrckr solution- Consumer offer, business model, company- Financials


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Trends in mobile and music market


- Easy access- Real-time connection with friends - Integration of digital media with physical spaces

30 million millennials subscribing to mobile social networking sites by 2012.Mobile Social Networks Embraced by Millenials. Business Wire, May 28, 2008.

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Consumers have gone mobile

- Music is available on the go

- Websites reproduced for the small screen

Smartphones and easy-to-access apps are fueling growth.75% of the US population will have an MP3-capable phone by 2013, making mobile music a common behavior in the mainstream

U.S Music Forecast, 2008 to 2013. Forrester Research, December 30, 2008

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Music has gone mobile

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The soundtrckr solution


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soundtrckr allows users to broadcast and listen to millions of songs for free, chat with their friends, find other music fans in the neighborhood, and geo-tag song to places for other users to discover. Designed for the mobile environment soundtrckr utilizes:

- Smartphone functionality, geo-coding technology, and social network architecture

- A simple, intuitive interface

- Radio streams of song recommendations based on personal taste and geographic location

Positioned at the intersection of:- Social networks

- location-based services

- Music, radio and audio (micro-broadcasting)

Soundtrckrʼs core target markets: - Early-adopters, middle to upper-income smartphone users

- Regular buyers of digital music; Users of location based services

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The soundtrckr solution


The tools to create a soundtrack for our lives:

- Listen to millions in fully-licensed songs for free

- Create and Broadcast and tune into your friends stations in real time

- Discover new artists

- Chat with your friends

- Find other music fans in your neighborhood

- Geo-tag your favorite songs to your favorite places for other users to discover

- Share content in real time with friends on facebook and twitter

core features

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- Tag your favorite places with a perfect song or station

- Discover new music your friends and neighbors are listening to, and where they are listening

- Post geo-tags to social networks

- Start conversations about the music and places that matter for you most

- In addition a geosocial experience opens the door to targeted advertising. Users, content owners, sponsors, and partners, interact in innovative, localized ways

geo-tags

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- Turn broadcast ON and other users can tune into your stations

- Build up your listeners on the web

- Share your favorites content on twitter and facebook

broadcast yourself

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Soundtrckr music recommendations are based on:

- personal favorites

- friends’ favorites

- music tagged near your current location

discover more music you love

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Consumer offer, business model, company



Soundtrckr consumers connect the world they live in to the music they love.

Free, basic ad-supported service (2009-2010): - User seeds stations based on favorite artists and songs stored in their mobile devices

- Soundtrckr generates fully-licensed radio streams

- Interactivity with friends over mobile and the web is enabled through own communication infrastructure, Facebook and Twitter

Premium experience (2010): - Free service serves as a foundation to additional features and functionality

- SDK release to developer community for creation of web and mobile applications

- Subscription offering for more flexible and interactive social interactions and use of multimedia content

Territories- US in 2009. Planning underway for releases in Europe and Latin America in 2010 and 2011

Consumer offer

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Revenues:- A blend of application sales, music subscriptions, location based audio and visual advertising/sponsorship, and songs

downloads

Expenses: - Carefully managed across functions and content licensing

Content:- Soundtrckr is committed to a fully licensed offering and fair compensation to content owners, publishers, and partners

- Soundtrckr offer access to a MediaNet-powered music catalogues featuring millions of songs from major and independent labels. Content is delivered via radio-style streams

- License Agreements with ASCAP, BMI, SESAC, Harry Fox, and Sound Exchange

Business model and content licensing

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August 2009 - Live functionality on the iPhone and the web

- Key team roles filled across all disciplines

September 2009- Private alpha testing round (100 mobile users and 300 over the web)

- Seed funding round from Romulus Capital- Webcasting and performance rights agreements (Sound Exchange, ASCAP, BMI, SESAC)

October 2009- Harry Fox Agency music publishing agreement - Best European start-up of the year 2nd prize at SMAU in Milano- Full Patent filed to USPTO

November 2009- White-label agreement with MediaNet- Trademark filed to USPTO

December 2009- Commercial availability of soundtrckr app on iPhone, the iPod Touch and the web- Review on Wired website

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Milestones


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press

“Soundtrckr is Spot-On,

Like a Location-Aware Pandora”

December 17, 2009;; Wired Website: January, 13 2010;; Social Media Marketing:

“...Location-based services are here to

stay. And the increase in smart phone

users makes the popularity of geo-aware

services even more likely.”



Positioning: Connect the world you live in to the music you love- Creates differentiation around how, where and when music is enjoyed

- Translates music into social currency that builds intimacy and loyalty

Tactics:

- Build public awareness and user base through social media, word of mouth, buzz marketing, and media outreach

- Leverage existing soundtrckr users relationships with friends through social networking platforms integration

- Strategic partnerships and collaboration with content owners and partners

- Product based user marketing such as contest, rankings and rewards

Marketing and customer acquisition strategy

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Customer acquisition strategy- 25% of new registered users projected to be acquired through direct marketing spend (vs word-of-mouth/viral/PR)

- Avg. cost per new acquired user = $2.00 across a range of tactics (thus effective CPA = $0.50)

- $2 CPA is reasonable vis-a-vis lifetime customer value (LCV) of a "free" (ad-supported) user, with subscription conversion at 2%

- SEM 30%

- Display ads (CPC) 20%

- Display ads (CPM) 15%

- Affiliate program (CPA) 15%

- Mobile 20%

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Mobile and web users- Mobile growth based on 10% of Pandora’s free mobile app penetration

- Web growth rate based on competitive analysis (Pandora & Last.fm)

- Unique web users and active mobile user projected to grow to 500k by end of 2010 and 1.25m by end of 2011

- Annual growth of 1.5X-2.3X over 2011-13 to 7M by EOY 2013

- Ratio of active users to registered users = 75% across horizon

- Registered users projected to grow to 667k in 2010 and 1.7m in 2011

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1,750,000

3,500,000

5,250,000

7,000,000

2010 2011 2012 2013


Unique web visitors Active mobile users

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125,000

250,000

375,000

500,000

2010

2011

2012

2013

Subscribers

- Based on 4% conversion rate of unique visitors, with 15-20% churn - monthly basis

- Subscribers growth rate based on competitive analysis (Rhapsody and Napster)

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Financials


-$25,000,000

$0

$25,000,000

$50,000,000

$75,000,000

$100,000,000

$125,000,000

$150,000,000

20092010

20112012

2013Total Revenue Expense EBIDTA Free Cash Flow

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five years financials

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thank youDaniele CalabreseCEO and Founder

[email protected]

+1 (202) 460-2183


mailto:[email protected]

mailto:[email protected]

Soundtrckr

Technology

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