THE POWEROF COUNTRY2010 INdUsTRY OvERvIEW aNdCOUNTRY FaN aNalYsIs

2009 marked the fifth consecutive year Nielsen SoundScan reported Country Music sales of more than 1 billion units (albums, singles, music videos, digital tracks), continuing a steady growth that reflects commitment to the genre. Numbers for the first half of 2010 show promise that this increase in sales will continue. Fourth quarter new releases from artists including Kenny Chesney, Rascal Flatts, Darius Rucker, Sugarland, Taylor Swift, Keith Urban and Zac Brown Band will certainly skyrocket sales.

C H A R T T O P P I N GC O U N T R Y M U S I C –O N E B I L L I O N S O L D !

C O A S T T O C O A S T S U P P O R T C O U N T R Y41% of adults who reside in the Top 25 DMA’s consider themselves to be Country fans.

Top 10 Country Albums of 2010Lady Antebellum, Need You Now 2.2 million

Taylor Swift, Fearless 536,104

Zac Brown Band, The Foundation 495,767

Carrie Underwood, Play On 376,723

Lady Antebellum, Lady Antebellum 314,206

Miranda Lambert, Revolution 268,757

Josh Turner, Haywire 254,506

Jason Aldean, Wide Open 247,817

“Crazy Heart” Soundtrack 240,645

Blake Shelton, Hillbilly Bone 201,065

Top DMA’s for Country Album Sales1.New York City 6.Atlanta

2.Los Angeles 7.Nashville

3.Dallas/Ft. Worth 8.Seattle/Tacoma, WA

4.Washington, D.C. 9.Philadelphia

5.Houston 10. Chicago

THE COUNTRYIS IN LOvE wITH

COUNTRYThe numbers don’t lie–the country shares a deep and abiding love for Country Music. From coast to coast, across income brackets and in big and small towns it is clear that Americans connect with Country and that connection shows in the numbers.

π 38% of Americans–or about 85 million people are Country Music fans.

π Country Music is the No.1 radio format among adults and reigns over all other music formats with more than 2,010 stations nationwide.

Source: GfK MRI, Spring 2010

Taylor Swift’s Fearless ended 2009 as the biggest selling album with just over 3.2 million album sales. Swift came in second behind Michael Jackson as the biggest-selling artist of 2009. Swift’s 4.6 million combined album sales in 2009 marked the second straight year that she sold more than 4 million albums.

Source: Nielsen SoundScan 5/31/10

Source: GfK MRI, Spring 2010

Following the trend of recent years, 2009 saw a 16% increase in digital music purchases. Country artists benefitted from the trend with an all-time high in RIAA certification for Country singles with six multi-Platinum, 16 Platinum and 37 Gold.

Country remains the most dominant music radio genre, with 2,010 stations devoted to the format–more than double of the next musical category. Four of the top 10 artists that received the most airplay in 2009 for any format were Country music artists–Toby Keith, Tim McGraw, Rascal Flatts and Taylor Swift.

More adults listen to Country Music radio weekly than any other format.Country 20% Rock 11%

CHR 19% Classic Rock 10%

AdultContemporary 17% Alternative 7%

Urban 13% Rhythmic 7%

News/Talk 12% Religious 7%

Oldies 7%

Digital Song Sales of 2010 (as of may 2010)

Taylor Swift "Love Story" 4,569,031

Lady Antebellum "Need You Now" 3,671,307

Taylor Swift "You Belong With Me" 3,252,306

Zac Brown Band "Chicken Fried" 2,222,652

Rascal Flatts "My Wish" 1,558,667

Carrie Underwood "Cowboy Casanova" 1,359,064

Zac Brown Band "Toes" 1,293,422

Taylor Swift "Today Was A Fairytale" 1,107,632

Lady Antebellum "American Honey" 678,504

Carrie Underwood "Temporary Home" 492,227

D I G I T A L M U S I C A C C O U N T S F O R4 0 % O F M U S I C P U R C H A S E S

C O U N T R Y R A D I O D O M I N A T E ST H E A I R w A Y S

In 2009 Taylor Swift was one of only four artists who sold more than

10 million tracks digitally(with 12.3 million)–a first for a

Country artist.

Source: RIAA

Source: GfK MRI, Spring 2010

TweeTINg wIThT h e S T A r SCMA hosted their 2nd Annual CMA Music Festival Tweet ‘n’ Greet. Host Tim McGraw along with stars including Lady Antebellum, Reba McEntire, Keith Urban and the Zac Brown Band tweeted and updated their Facebook status during the show. Country fans rallied behind the TV special, pushing it to No.1 on Twitter's Top 10 Trending Topics for the evening.

CouNTry FANS Are CoNNeCTed76% have a Facebook account23% have a Twitter account90% are online daily and/or consider themselves a “Web junkie”68% have downloaded digital Country Music files (single songs

or full length albums)

Source: 2010 CMA Music Festival Attendee Survey

C O N N E C T I N G v I A S O C I A L M E D I ACountry artists and their fans are tapped into the power of social media, connecting via Facebook, Twitter, MySpace, and YouTube.

• TaylorSwiftranksjustbehindLadyGagaandMichaelJackson,but above The Beatles and Beyonce for Facebook fans.

• CarrieUnderwoodhasmoreFacebookfansthanMadonna,Kim Kardashian and the New York Yankees.

• TaylorSwift,DollyPartonandKennyChesneytaketophonorsin Twitter followers. With 23% of Country fans boasting a Twitter account, other artists are rapidly growing their list of followers.

• TheCMAMusicFestivalWebsitereachedthe"1 million unique visitors" mark in 2010.

Top 10 Country Artist Facebook Fan Pages as of Sep. 8, 2010

Taylor Swift 9,836,707

Johnny Cash 2,762,575

Carrie Underwood 2,482,867

Lady Antebellum 2,150,816

Rascal Flatts 1,444,429

Kenny Chesney 1,434,954

George Strait 1,461,500

Jason Aldean 1,399,757

Tim McGraw 1,291,806

Zac Brown Band 1,256,308

Companies flocked to team with

Country artists and tap into their

powerful and passionate fan base.

Country stars partnered with a

broad range of brands including

clothing lines, greeting cards,

consumer electronics, beauty

products and food items.

P O w E R F U L A N D I M P A C T F U L P A R T N E R S H I P S

Faith Hill – Coty

Kellie Pickler – Sexy Hair

Taylor Swift – American Greetings, SONY Cyber-Shot digital cameras, Verizon

Jason Aldean – Country Financial

Reba McEntire – Dillard’s

Miranda Lambert – Cotton, Inc.

Carrie Underwood –Vitamin Water, Pedigree

Keith Urban – KC Masterpiece, Kingsford Charcoal

Rodney Atkins – VELVEETA Shells and Cheese

Trace Adkins – BC Headache Powder

M O R E T H A N 5 . 5 M I L L I O N F A N S A T T E N D E D C O U N T R Y M U S I C C O N C E R T S L A S T Y E A R

Hitting the road and connecting with their fans is critical to Country artists, so it is no surprise that Kenny Chesney came in at No. 3 on Pollstar’s list of the Top Tours of the Decade, based on gross box office receipts. With nearly a half a billion dollars earned on the road over the last decade, fans are coming out to see Chesney’s shows. It’s no wonder that sponsors including Cruzan Rum and Corona Extra have partnered with him.

In 2010, Country concert numbers are on track to surpass last year’s touring numbers. Once again, major sponsors are tapping into the power of the fan base by sponsoring Country Music tours.

Top Tour Sponsors of 2010Artist Tour Sponsor

Brooks & Dunn Toyota Tundra

Martina McBride/Trace Adkins SunnyD/BC Headache Powder

Tim McGraw Outback Steakhouse

Brad Paisley Chevy

Rascal Flatts JCPenney

Perhaps the biggest news of the year was the return of garth Brooks to regular performing, if only in one

venue and one city. Brooks announced that he will perform intimate acoustic

shows at the wynn Las Vegas resort and casino. The superstar will play a series of dates each year for five years, most

which have already sold out.

Kenny Chesney

Jace Everett, “Bad Things,” Billy Ray Cyrus and Miley Cyrus

• FaithHillparticipatedasaguestjudgeontheseasonfinaleofLifetime’s hit reality series, “Project Runway.”

• LukeBryanandEmilyWestappearedinanepisode of NBC’s “Celebrity Apprentice.” The two artists took part in a challenge that had the celebrity teams trying to figure out what it takes to make a Country Music superstar.

• TimMcGrawgarneredravereviewsplayingSeanTouhyinthe Oscar-nominated movie “The Blind Side.” McGraw's song “Southern Voice” was featured in the closing credits.

• BillyRayCyrusandMileyCyrusstarredin“HannahMontana:The Movie” with Taylor Swift and Rascal Flatts making cameo appearances and contributing to the soundtrack.

• Fox's“AmericanIdol”dedicatedanepisodetotheGrandOleOpry, with performances by Brad Paisley, Randy Travis and Carrie Underwood.

• TaylorSwiftappearedin“Valentine’sDay.”Thesoundtrackfeatures her song “Today Was a Fairy Tale,” as well as tracks from Jewel, Willie Nelson and Steel Magnolia.

• ProducerTBoneBurnettandsongwriterRyanBinghamwonan Oscar for "The Weary Kind" from the film "Crazy Heart." Burnett also produced the soundtrack for the movie, which included Bingham, Waylon Jennings, George Jones, The Louvin Brothers, Buck Owens, Townes Van Zandt and Kitty Wells among others.

• DollyParton’smusical"9to5"madeitsBroadwaydebutandreceived four Tony Award nominations.

• JaceEverettwroteandperformed“BadThings,”thetheme song for the acclaimed HBO series “True Blood.”

C O U N T RY A RT I S T S I N vA D E P O P C U LT U R E

CouNTry MuSIC’SBIggeST NIghT! “The 43rd Annual CMA Awards” showed why it is “Country Music’s Biggest Night.” When the 2009 CMA Awards aired live on ABC on Nov. 11, 2009 the Awards dominated prime time ratings, garnering 17.2 million viewers and sweeping all demos.

CouNTry'S NIghTTo roCK! The 2010 CMA Music Festival, held every June in Nashville, topped attendance records with more than 260,000 fans. Loyal fans were treated to more than 100 hours of concerts and appearances from more than 400 artists and celebrities. CMA Music Festival also captured the attention of television audiences with a three-hour network TV special on ABC on Sep. 1, 2010. “CMA Music Festival: Country’s Night to Rock” was viewed by more than 6 million loyal fans.

COUNTRY ARTISTS LIGHT UP THE BIG SCREEN, THE SMALL SCREEN AND THE GREAT wHITE wAY!

CMA PreSeNTSA CouNTry ChrISTMASCapturing the spirit and the magic of the season, the CMA holiday television special will feature performances by a variety of artists performing classics ranging from intimate, moving ballads to rocking production numbers. The show will also include up close and personal moments with Country artists and their families discussing cherished holiday memories and traditions. The show will air on ABC.

Taylor Swift

• JulianneHough,SugarlandandZacBrownBandwereamongthe celebrities at the recording session for a reprise of "We Are The World," which benefits Haitian relief efforts.

• TeamUSAreceivedaspecialmusicaltributetocelebratethe2010 Winter Olympics in Vancouver. Gloriana, Rascal Flatts, Sugarland and Train were among artists who contributed original songs to the AT&T Team USA Soundtrack, sold on iTunes during the Winter Games, with proceeds going to the U.S. Olympic Committee to benefit Team USA. They also recorded exclusive music videos, which were featured during NBC’s Olympic Games coverage.

• FaithHillreprisesher role as the musical intro for “NBC Sunday Night Football” and Hank Williams Jr. once again asks “Are You Ready For Some Football?” on "ESPN Monday night Football." Faith Hill

Carrie Underwood’s 2010 wedding was cover material for three major celebrity weeklies, however, she is not Country’s only cover girl. In the past year Country artists have graced the covers of a wide range of mainstream magazines including, Allure, Bliss, CosmoGirl, Entertainment Weekly, Girl’s Life, Glamour, Good Housekeeping, InStyle, Lucky, Men’s Journal, Parade, People, Reader’s Digest, Rolling Stone, Self, Shape, Seventeen and Teen Vogue.

Kenny Chesney, Alan Jackson and Denise Jackson, Reba McEntire and Brad Paisley appeared on the covers of People Country. Additionally, Julianne Hough, Taylor Swift and Carrie Underwood were included in People’s “100 Most Beautiful People” list.

TrIBuTeS ANd ACCoLAdeSπ george Jones’ “he Stopped Loving her

Today” was among 25 songs added in 2009 to the Library of Congress National recording registry.

π roy Clark, Barbara Mandrell and Charlie McCoy were inducted into the Country Music hall of Fame in 2009. 2010 inductees include Jimmy dean, Ferlin husky, Billy Sherrill and donwilliams.

π Alan Jackson and Crystal gayle received stars on the hollywood walk of Fame in 2009.

LENDING THEIR vOICE

GRACING THE PAGES

CouNTry ArTISTS roCK VIdeo gAMeSCountry artists continue to make their presence felt in the world of video games. Fans were able to be in a band with a virtual Taylor Swift in “Band Hero,” while “Guitar Hero World Tour” added songs by Brooks & Dunn, Brad Paisley and Rascal Flatts. Toby Keith songs were added to the Rock Band Music Store as well as a six-pack for XBOX and PlayStation.

L O Y A L A N D P O w E R F U L F A N B A S ECOUNTRY MUSIC FANS REPRESENT 38% OF TOTAL U.S. ADULTS, MORE THAN 85 MILLION PEOPLE.

Age Breakdown

18– 24 12%

25– 34 18%

35– 44 19%

45 –54 20%

18– 49 60%

25 –54 57%

COUNTRY MUSIC FANS . . .ARE BRAND LOYAL•83% believe buying American products is important

•89% stick to the brands they like

•75% will buy a product that is made by a company they trust, even if it is slightly more expensive

•38% spend $150+ on average on groceries per week

•25% more likely than the average American to spend $100+ last month at a convenience store

ARE HOME AND PET OwNERS• 76% own their home—9% more likely to own their own home

when compared to the U.S. population at large.

•Morethan60% of homes are valued at $100,000+

•Morethan56 million have pets

LIkE TO COOk•57% spend 4 hours cooking per week

•49% barbecue once a week

ENTERTAIN AT HOME•46% have entertained at home in the past; 2 –3 times per month

ENjOY EATING OUT• 73% have eaten at a fast food restaurant; 4+ times in the

past month

FAvORITES•SportingEvents

•NASCARSuperFans

•AvidReaders

Source:2010MRI,SpringA “Country Fan” is defined as an adult to who participated inoneormoreofthefollowing:ListenstoCountryRadio;Attends Country Music Concerts; Purchases Country Music; Watches the CMA Awards, CMA Music Festival Television Special and/or Academy of Country Music Awards; Watches CMT and/or GAC.

Women 54%

Men 46%

Married 59%

Parents 40%

HHI $60,000+ 52%

Attend and/or Graduated College 54%

Reside in B, C or D Counties 70%

Founded in 1958, the Country Music Association was the first trade organization formed to promote a music genre. Today, more than 6,000 music industry professionals and companies from 41 countries are members of CMA.

CMA’s mission is to heighten the awareness of Country Music and support its on-going growth by recognizing excellence in the genre, serve as a repository for critical and timely information and communication, while providing a forum for industry leadership dialogue toward its goals. From producing two annual network television specials, fan extravaganzas and various industry functions, CMA constantly helps fulfill its mission through these highly-visible activities.

CMA AwARDSCountry Music’s Biggest Night began in 1967 and airs annually on ABC. with the 2009 CMA Awards broadcast live from Nashville during November Sweeps, ABC won in viewers (17.2 million) and adults 18-49 (5.3/14) with 35.8 million viewers watching some or all of the program.

CMA MUSIC FESTIvALFive days filled with more than 100 hours of live music, hundreds of artists and celebrities, 30 hours of autograph signings and a party list of an average of 65,000 fans from every state and 26 countries attending each day of CMA Music Festival, its biggest turnout since the original Fan Fair was launched in 1972.

“CMA MUSIC FESTIvAL: COUNTRY’S NIGHT TO ROCk”Broadcast annually on ABC, the special invites the whole country to America’s biggest Country Music bash.

kEEP THE MUSIC PLAYINGCMA donates half the net proceeds of each CMA Music Festival to fund music education in Metro Nashville Public Schools through its Keep The Music Playing program. In 2010, CMA pledged the remaining 50 percent of this year’s Festival net proceeds to The Community Foundation of Middle Tennessee for flood recovery efforts. Since 2009, CMA has donated more than $3.3 million which includes an endowment gift to the Country Music hall of Fame and Museum’s “words and Music Program.”

COUNTRY MUSIC HALL OF FAMECMA created the Country Music hall of Fame in 1961 to recognize individuals for their outstanding contributions to the format with Country Music’s highest honor. There are currently 112 inductees, chosen by CMA’s hall of Fame Panels of electors, which consist of anonymous voters appointed by the CMA Board of directors.

CMA SONGwRITERS SERIESStill going strong after six years as a recurring event at Joe’s Pub in New york City, the CMA Songwriters Series, which takes listeners into the creative process behind the craft of writing great songs, has expanded to shows in Los Angeles, Chicago, Nashville and washington, d.C..

PROFESSIONAL ACHIEvEMENT RECOGNITIONCMA recognizes and celebrates those organizations and individuals who have made outstanding contributions to the Country Music industry from behind-the-scenes by distributing annual awards including CMA Broadcast Awards.

© 2010 Country Music Association, Inc. Logos and photos used with permission.