the next-generation independent music & media company
Post on 11-Dec-2015
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The Next-Generation Independent Music & Media Company
Integrates Essential Links in Music Value Chain Currently Fulfilled by Separate Parties
Traditional “Bricks & Mortar” Record Label Operations
Live Performance Venues
Digital Distribution Channel
An Exceptional Combination of Artists, Producers, Business Executives & Technologists
Competitive Advantage
More Attractive to Artists
New Economic Model
Broader Services
Commitment to Artist Development
More Attractive to Consumers
Direct connectivity from Consumer to Artists
Music Whenever, Wherever, & However
Integrated Approach
Direct Consumer Connectivity
Greater Profitability &
Shareholder Value
Music Industry - Best Point of Entry
Traditional business practices under pressure to change
Digital technology has created new distribution opportunity
Artist Network, as start-up, in best position to take advantage
The Future
Once Model Is Proven, Other Digital Media (Including Film) Follow
Designing Business Practices & Digital Platform From Day-one
Establishing Alliances With Digital Film Initiatives Including Ealing Digital
The People
Quincy Jones, Chairman & Co-founder
Michael Philipp, Vice Chairman
Dave Stewart, Director & Co-founder
Russell Kleinknecht, President , CEO, & Co-founder
John Preston, Director
Quincy Jones, Chairman & Co-founder
Over 50 years of highly successful & diverse experience
A Legendary Career • Composer, Artist, Instrumentalist,
Arranger, Conductor• Record producer• Film & TV producer• Record company executive• Multi-media entrepreneur• Founder of a broadcasting company &
magazine
Extensive experience in every aspect of the industry
Michael Philipp, Vice Chairman
19 highly successful years in the financial industry
Chairman & CEO of Deutsche Asset Management
June 2000 - Appointed to Deutsche Bank Group Board of Managing Directors
Dave Stewart, Director & Co-founder
Award Winning Musician & Producer• 4 Best Producer awards - 4 Best Songwriter awards
• British Music Lifetime Achievement Award
• Prestigious Silver Clef award
Formed Eurythmics with Annie Lennox in 1981• Sold nearly 50 million albums
President of the Internet Society, Trinity College (Dublin)
Creative Director of the Hospital Project with Microsoft’s Paul Allen
Russell Kleinknecht, President, CEO & Co-founder, Director
20 Highly Successful Years As a Technology Visionary
Past President of IPC Information Systems, Inc., The Dominant Global Provider of Voice Trading Systems to Financial Institutions
Accomplished Musician, Singer, & Songwriter
John Preston, Director
25 Years Experience in the Music Business
Chairman of BMG Entertainment International UK & Ireland and British Phonographic Industry (BPI) from 1989 - 1998
Board of the International Federation of the Phonographic Industry (IFPI)
Worked for EMI and Polygram (Managing Director of Polydor Records)
Organization Chart
ContentContent
Chief Financial OfficerChief Financial Officer VP of Business AffairsVP of Business Affairs
VenuesVenues DigitalDigital
ClubsClubsClubsClubs
ConcertsConcertsConcertsConcerts
RetailRetailRetailRetail
TicketingTicketingTicketingTicketing
Product DevelopmentProduct DevelopmentProduct DevelopmentProduct Development
ArchiveArchiveArchiveArchive
Customer Relationship MgmtCustomer Relationship MgmtCustomer Relationship MgmtCustomer Relationship Mgmt
DistributionDistributionDistributionDistribution
Board of DirectorsBoard of Directors
Chief Executive OfficerChief Executive Officer
Owned LabelsOwned LabelsOwned LabelsOwned Labels
PartnersPartnersPartnersPartners
Direct ArtistDirect ArtistDirect ArtistDirect Artist
DistributionDistributionDistributionDistribution
The Strategies
Record Label Strategy
Venue Strategy
Digital Strategy
Record Label Strategy
Venue
StrategyDigital
Strategy
Record Label Strategy
Start-Up new label unencumbered by legacy legal agreements
Utilize relationship with major global provider of traditional distribution services
Institute new contract model with artists
LLC Partnership
Profit Split
Manage P&L at LLC Level
Consolidate efforts within single staff
Record Label Strategy
Launch Initial Artists & Heavily Promote their Success from New Model
Aggregate A&R Sources through Integrated Approach• Venues• Digital Platform• Traditional
Build Consumer Brand Recognition
Cultivate Worldwide Philosophy
Venue StrategyOperate Local Venues as part of Worldwide Network
Owned in Strategic Markets - Affiliated in Other Regions
Promote Artist & Brand at Most Fundamental Level
Build & Exploit Direct Consumer Relationship
Create Opportunity for Cultural Exchange
Live Performance Museum
Retail Digital Cinema
Gallery Production Facilities
Digital StrategyOwn & Operate the Most Direct Connection to the Consumer by Implementing a Digital Distribution Platform (DDP) with Interfaces for:
Internet
Wireless Networks
Venues
Retail
Other Consumer Destinations (ITV, Private, etc.)
Monetize Content
Build & Populate Consumer Database
Digital Strategy
Offer Membership and Multi-Tiered Subscriber Services
Use DDP to generate revenue from subscription and sales of:
CDs, DVDs
Downloads
Tickets & Merchandise
Build Profile Capability & Perform highly personalized targeted marketing of existing and new product to the Consumer base.
Differentiation
No Other Company
Summary Income Statement2001 2002 2003 2004 2005 2006
REVENUES
Digital - 3,286 18,192 64,794 149,792 340,897
Content - 13,567 57,109 112,968 167,837 230,973
Venues - 16,112 101,778 153,619 177,249 184,286
- 32,965 177,079 331,381 494,878 756,156
EBITDA
Digital (4,670) (35,028) (36,837) (9,554) 39,641 148,767
Content (1,465) (8,795) 4,729 7,443 13,370 28,127
Venues (98) (296) 11,619 19,243 22,995 24,280
Operating Overhead (1,853) (11,594) (14,345) (15,022) (16,205) (17,881)
(8,086) (55,713) (34,834) 2,110 59,801 183,293
-169% -20% 1% 12% 24%
Depreciation / Amortization 7 2,461 8,395 12,558 10,150 6,902
EBIT (8,093) (58,174) (43,229) (10,448) 49,651 176,391
Initiatives
Create Multicultural Exchange
Programs• “World Music Experience”• Ambassadors of Good Will
Not limited to AN Artists
Initiatives“World Music Experience” Program
• Quincy Jones - World Music Ambassador• Live Shows & Festivals• College Tours & Promotions• Record Releases• Inter-venue Broadcasts• On-line (Internet, Mobile Phone, PDA, etc.)• Pre-cinema Shorts at AN Digital Screens• Philanthropy
Summary
Exit ProgramMain Menu Exec Brief Company People Financials Summary Exit ProgramMain Menu Exec Brief Company People Financials SummaryStrategy
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