Michele Amar-Ouimet Director French Music Export Office New York

1. Michele Amar-OuimetDirectorFrench Music Export Office New York Currents and Cross-Currents in Digital Music Distribution ______________________________________________________________________________

2. Riding the new digital waters as the currents change • The global cultural change • The timing of industry change • Our new opportunities

3. The Dilemma of Digital • Accessibility to digital music • The advantages of digital • The listener’s preference

4. Statistics • At least 90% of music consumption is illegal • Consumer spending forecasts • Physical vs. Digital sales YTD

5. Marketing in the Digital World • A new model of marketing • Advantages in the digital realm • Independent Label innovation

6. Opportunity for Independents HUNDREDS OF DIGITAL SERVICES THOUSANDS OF INDEPENDENTS MILLIONS OFMUSIC FANS

7. Digital Music Trends • The World of Apps • Subscription Services • Publishing Platforms

8. New Ways How Digital is Helping Smaller Labels • D.I.Y • Profit structure • Independence • Far-Reaching Potential

9. 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

10. Where Physical Cannot Go • Inventory advantage • Getting artists paid • Promotion • Accessibility through Aggregators

11. Democratization of Digital Media Content Reduced Cost of Production & Distribution

12. IODA at a Glance • IODA develops and hostsdistribution, marketing, andback-officetechnology 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

13. HEADQUARTERS OFFICES PARTNERS CONSULTANTS DISTRIBUTORS (D3) Global Presence LEGEND:

14. Comprehensive Solution MARKETING DISTRIBUTION BACK-OFFICE

15. IODA Digital Distribution DIGITALCONTENT AGGREGATION HUNDREDS OF DIGITAL MUSIC SERVICES $10B DIGITAL MUSIC MARKET IN 2010 THOUSANDS OF INDEPENDENT RIGHTSHOLDERS • Efficient in-house encoding and delivery supply chain • Strong relationships with Indie-focused programmers • Creative retail marketing plans for developing artists

16. Over 350 Outlets Worldwide Over 50 additional priority deals in negotiation, 100+ on deck

17. D3 (D-Cubed) • D3 = Digital Distributor Dashboard • White Label Platform for CD Distributors • Co-Branded Interface and Messaging • Integrated Accounting and Reporting • Two-tiered Marketing and Promotions Support 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 Catalog Growth

18. Distributors

19. 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

20. Rightsholder Dashboard

21. Royalty Reports

22. 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

23. Value to Digital Retailers • 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

24. 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 SALES FANS MICRO-MARKETERS/ PROMOTIONAL PARTNERS

25. Digital Music Discovery • Inside the Music Stores • Browse • Search • Recommend • Relate • Collaborative Filtering • Radio • Community/Playlists • Personalization

26. Digital Music Discovery • Outside of the Music Stores • Blogs and Podcasts • Web Radio • Zines and Review Sites • Community/Social Networks

27. Blogs and Podcasts Embedded code creates distributed affiliate network

28. Social Networks Community-focused promotional partnerships

29. Building Community Promotional data integration – manage once, publish everywhere

30. 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

31. Region Filtering

32. Region Filter: China

33. Region Filter: China

34. Region Filter: China

35. Chinese Folk

36. 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

37. Six Degrees Shop

38. MSO Symphony Store

39. Thank You.