MYDJThe Digital Music Store;agnostic online & mobile

SIGN UP FREE

Digital Music Industry• 25% growth to US$3.7 billion in trade value – Aus $40m• Digital platforms - 20% of recorded music sales, up from 15%

in 2007• “Monetising" access - multitude of channels & platforms • Single track downloads, up 24% in 2008 to 1.4 billion units

globally, continue to drive the online market, but digital albums are also growing healthily (up 36%).

• Generation X & Y is key end user

Mobile Phone Industry

• Mobile is the future – always with you 24/7

• 8.55m 3G handsets (December 08) up 88% - over 10m 2009

• Most ubiquitous device

• The ‘conversation’ – needs to happen seamlessly & consistently across all devices

• Responded quickly (96% SMS read in <20 mins)

MyDJ Journey

• User Experience, Functionality & Console

• The White Label Product

• Technological Developments – What’s Next

• Target Market

• Revenue Opportunities

• The Challenges

MyDJ – the music store• Agnostic online & mobile - compatible across handsets & teleco's

• Exclusive content – direct from the record labels (look at impact on white label)

• 1.5m songs that can be bought, shared and downloaded

• 400 Music Labels including the majors & global distributors - Largest digital music database in southern hemisphere

• 30 genres of music

• Borrow before you buy

• Share favourites with friends – value of recommendations

• Dual Purchase

• Playlist creation tools

• Music Managers Console - service

• ‘64% of consumers will try something recommended by a friend. 69% will forward something they like to from 2 to 6 friends.’

- Jupiter Research Sept 2006

Value of Recommendation

User Experience

• Sign up is free for users

• Personalised playlists

• Users selects 3 favourite genres to customise their music experience

• Unlimited re-downloads of their songs

• Dual download - $1.99 for (mobile & PC)

• Music stored forever – The Vault

Functionality• Access via WAP, through www.m.mydj.com.au or SMS

• No J2ME or application downloads on either PC or mobile

• Libraries of purchased songs are synchronised with their mobile & PC

• The music is protected by custom DRM - compatible with 70% of 3G handsets

• Shopping cart – multiple purchases

Music Managers Console

• Custom built CMS back-end solution – full management

• Reporting

• Revenue earnings

• Activation of tracks

• Integration into any system or product – globally

The White label Product

Why White Label• Value add - giving customers added value

• Interactivity & engagement - community

• A point of difference

• Creating loyalty

• Branding opportunities

• Tailored functionality

• Mobile access & connection

3 Products1. The Content – the value add

– Provide your customers with the latest, exclusive music through MYDJ.

2. The Tool – ease & functionality– Branded– Content – Use the CMS to add your own exclusive music or tailored play lists– Flexibility for independents/events

3. The Package – the managed service– Branded, content, CMS & TigerSpike Service– Tailored solution– Add additional functionality to your product offering - integration

Technological Developments

What’s Next• DRM - Free

• More tailored functionality

• Across more mobiles

• Adserving capabilities

• More interactivity – competitions, user playlists, share address book,

ratings, forums etc.

• Greater in depth search

• Mac friendly content - iPhone

White Label - Target Market

Target Market• Telcos/ISPs

• Handset manufacturers – value add - preloaded app on the phone

• Retailers operating in real & virtual space can promote new service to

their existing and potential client base. e.g. Kmart, Woolworths

• Digital Radio Stations – our favourite Rock playlist

• Retailers providing a service – as add on e.g. Airline, holiday operators,

gyms – your travel/workout playlists

• ARIA lists- all the latest original OZ bands

• Individual DJs – add to current site offering – listen to favourite lists• Organisations that would like to provide special service to their personnel

e.g. ABC/SBS

Revenue Opportunities

Opportunities1. Mobile component

2. The 3 products - & TigerSpike service

3. Revenue share options could include:• MyDJ - Charge for placement in key high traffic areas• Charge for additional elements – advertising, editorial• Freemium sign up to subscription model – look at

revenue opportunities• Carriage & branded bundle with a Telco • For retailers by removing logistics overhead

Challenges

Challenges• 95 per cent of music downloads are

unauthorised, with no payment to artists

& producers

• DRM – DRM free on the way & integration

• Mobile handset support – unpredictable

market

• Integration – new systems challenges

• Merging & integrating - Music Video

watching capabilities, games, latest news,

artists & tours information

Competition – first mover

ABC Stores Leading Edge

Apple iTunes loads.com.au

AroundMusic ninemsn Music

BigPond Music Optus

Chaos Music Ripit

destra Music Soundbuzz

JB HI-FI Triple J

Harvey Norman bandit.fm

MYDJAn online & mobile music

synchronised solution

• Agnostic - handset reach

• Synchronised across mobile/internet

• The TigerSpike service

• Competitive price.

• Exclusive content

• Clear & simple solution

• Large potential market – White Label

Summary