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Everybody gets the same

• Content providers and

Carriers select the “hottest” and latest content to be

marketed to consumers.

• The best sellers of each

period are profitable, so

therefore “safe”.

• Consumers are constantly

updated with new content as operators continuously

reinvent their portfolios.

• No longer “hottest” = No longer relevant or

profitable.

NEW Beyonce

Song1 yearlater

BeyonceSong

6 Monthslater

BeyonceSong

Static limited offer placement

•The Pareto Principle: 80/20 rule, traditional pattern of sales concentration.

•C. Anderson (WiredMagazine-2004): The Long Tail

• By lowering inventory storage, distribution and search costs, digital markets have the potential to increase the collective share of niche products, creating a longer tail in the distribution of sales.

• Now there are 2 markets to attack:

– Old Market: Top Sellers.

– New Market: Long Tail.

What percentage of your items are you selling at least once a month?

•James Surowiecki (2004): Wisdom of Crowds

•A diverse collection of independently-deciding individuals is likely to make decisions and predictions better than individuals or even experts.

–Lego: encourages its fanatical customers to design their products.

–InnoCentive.com: Companies pay solvers from $10k to $100k per solution. More than 30 percent of the problems posted on the site have been cracked.

The Many Are Smarter Than the Few

Long Tail + Wisdom of crowds

•Amazon: over 25% of Amazon’s book sales come from books not available in

brick and mortar stores.

•Rhapsody: 22% of sales are from songs not played on traditional media. 53% of

750k Rhapsody´s songs are streamed at least once a month.

•Netflix: 20% of DVD rentals are documentaries, B class movies and niche

movies.

•Google: Niche advertisers provide Google over 60% of their Ad Words revenues

Make everything available, help your customer find it and you will

increase your sales.

Dynamic personalized one to one offer

• Adaptive subscriber storefronts lead to infinite mobile shelf space and time

• Subscriber analytics and recommendation engines allow the long tail of niche markets to form across the content universe

• Incentive-based subscriber self-distribution allows for spread of mobile content and for easier content discovery across users

Spiderman I Clips

Beatles Oldies

Star Wars

2005 Spring Fashion Clip

20,000 80,000 and ongoing

Black Eye Peas Songs

Elvis’s Hits

Spiderman III

FergieSongs

Content Items

Do

wn

loa

ds

Viral self learning entertainment ecosystem incorporating Artificial

Intelligence techniques to understand, track, predict & recommend

content based on individual user tastes, downloads & popular contents.

• Sony BMG was looking to enter the market with a differentiated service that was unlike any other competitor offering.

• The approach taken by Mooga was seen as ground breaking and market leading.

• Mooga is currently administrating SonyBMG´s portal in Argentina, Chile and being launched in other Latam countries.

• This is the first mobile music portal administrated by artificial intelligence in the market.

Auto Context– Classification of existing meta-data/information/classification can be used to

automate the process of contextualization.

The SONYBMG Contextual Framework has been automatically

built with our auto-context scripting engine using SonyBMG´s

existing metadata, enabling a rapid deployment.

Song Title Artist Name Presentation Name Genre ISRCGrid

NumberType Filename

I Want You (Album

Version)Bob Dylan

I Want You (Album

Version) - Bob

Dylan

Rock AAAA XXXXpartnersCELLENTaudiom

p3_32k

partnersnetpeopleaudiomp3_3

2k/BobDylan_IWantYouAlbum

Version.mp3

Billie Jean (Single

Version)

Michael

Jackson

Billie Jean (Single

Version) - Michael

Jackson

Pop BBBB YYYYpartnersCELLENTaudiom

p3_32k

partnersCELLENTaudiomp3_32

k/MichaelJackson_BillieJeanSin

gleVersion.mp3

Gotta Move Faster

(Album Version)Sean Kingston

Gotta Move Faster

(Album Version) -

Sean Kingston

Hip Hop CCCC ZZZZpartnersCELLENTaudiom

p3_32k

partnersCELLENTaudiomp3_32

k/SeanKingston_GottaMoveFas

terAlbumVersion.mp3

Best Of You (ALERT

TONE)Foo Fighters

Best Of You (ALERT

TONE) - Foo

Fighters

Rock DDDD WWWWpartnersCELLENTaudiom

p3_32k

partnersCELLENTaudiomp3_32

k/FooFighters_BestOfYouALER

TTONE.mp3

SonyBMG´s portal structure

– Top 5 Section• Premium placed content defined by SonyBMG

• Shows same content to each and every user (SonyBMG´s request).

• One and only section not being administrated dynamically by Artificial intelligence.

– Artists• Fully dynamic section administrated by AI.

• Presents relevant content according to each user profile.

• All content presented in context.

Mooga allows to mix dynamic and static sections to

promote specific content due to marketing needs.

SonyBMG´s portal structure

– Context, context, context!• Content is placed in easily recognised categories.

• Provides with ALL available content related to the category.

• Takes full advantage of IMPULSE increasing multiple transactions per session.

– Recommendations• Fully dynamic section administrated by AI.

• Presents relevant content according to each user profile.

• All content is presented in context.

In order to find a content, you must know what

you are looking for.

Mooga discovers relevant content for each user.

SonyBMG´s portal structure

– Search functionality• Uses a “wisdom of crowds” ranking algorithm.

• Its the quickest path to access items of interest.

• Ranking is dynamic and continuously changes as the user activities evolve.

Search results provide a 3 tier view to useful

and relevant content as the crowd knows best what everyone wants!

SonyBMG´s portal structure

– Browsing functionality:• Mooga uses a “Top Down” approach.

• This is the most effective path for a user to access items of interest.

• Every list have been structured using intelligence based on entire portal activity of users.

Ease of content access coupled with implicit recommendations powered by Artificial Intelligence

• Give each customer WHAT THEY WANT, not what you think they

need:– Static Top5 made 25% of total sales meanwhile the Dinamic Storefront and

the Recommendation engine (AI) administrated 75%.

– Up to 50% of users who clicked on a recommendation ended making a download.

• CONTEXT IS KING– Almost 20% of users made multiple downloads from same artist.

Hey, I don´t like fish!

• Give customers INFINITE CHOICE and they will make infinite choices– 90,7% of the content available was download at

least once.

– 98,9% of artists got at least one download.

• Help your customers FIND RELEVANT CONTENT– More than 22% of subscribers used the

recommendation engine.

– 24,3% users made more than one download in a single session.

José F. Ugarte

VP Commercial

Jose.ugarte@ikensolutions.com