Digital Business Models

Geneva, 4th November 2010Francis Keeling, VP DigitalUniversal Music Group International

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WIPO Emerging Licensing Conference

Unlimited MusicMobile Subscription

MP3 Bundles

Stream & Keep Your Favourites

Artist Clubs Free Streaming Ad Supported

The Digital Music Market Place

• Streaming services – Give consumers free access– Spotify, last.fm, Pandora, Orange Monkey

• A La Carte Stores – Give consumers products to own– iTunes, Amazon, MediaMrkt, Telecom, 7Digital

• Subscription Services – Unlimited catalogue at low cost– Nokia Comes with Music, Napster, Rhapsody, TDC

• Audio Video – Watch music videos through PC and Set Top Box– BT Vision, Canal, Virgin Media TV, VEVO

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The Problem

• The development of these services is stunted by piracy– It is impossibleto compete with free

• Service Providers and Search Engines Take No Leadership or Responsibility

• The music industry depends on investment in new talent– To produce, market, promote and distribute– Our success depends on investment new artists, not old catalogue

• Future depends on investment in new services– But who will invest where free is the customers alternative?

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Music Subscriptions & Internet Providers

• Offer huge opportunity for ISPs– Reduce churn, acquire new customers

• Entertainment strategy– 3 screen model – PC, Mobile & Set Top Box

• They are better than piracy– Experience, Quality, Connectivity, Metadata, No Viruses

• Carrot & Stick Approach– Combined with anti piracy provisions

• Willingness of the Music Industry to launch services– To try new models & take risks!

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What We Provide

• Comprehensive Licensing Process– Either International or Single territory– Universal Offices & Digital Teams in over 50 countries

• Full catalogue of repertoire– Artists sign rights on a country by country basis

• Content– Tracks / Albums / Videos in format required by retailers– Digital Delivery and Reporting systems (All metadata)

• Marketing Support– Promotional Assets (Images, Videos, Interviews, Appearances)– Advertising (TV ads / Outdoor tagging, eCRM)

• Further INVESTMENT in Artists!

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Thank You