Enjoy your music
SonidoLocal.com
Jerome Sutter
February 2009

SonidoLocal.com
SonidoLocal.com

Solution
SonidoLocal.com
• SonidoLocal is the first legal Streaming On
Demand website in Latin-America where
users can enjoy for free music they really
listen to and share with friends music, news,
events from their favorite bands
• SonidoLocal will be the N°1 website about
music in Latin-America thanks to its design,
options and content.

Why SonidoLocal ?
SonidoLocal.com
• The Local Sound (SonidoLocal) is really important in
the Value Chain of the regional music industry
• 84% of sales and 77% of radio streams in the region
are spanish-speaking music
• Salsa,Vallenato, Merengue, Latin Pop and Rock are
always in the Top 40
• SonidoLocal is the only website that allows users to
listen to international artists and regional bands
(indies or signed with regional companies).

Target Markets
SonidoLocal.com
• Sex: Men and Women
• Age: between 15 and 55 years old
• Middle and Upper class
• Region: Latin-America (cities over 200.000
inhabitants)
• Total target - Colombia: about 6.500.000 people -
85.000.000 in whole Latin-America.

Added Values
SonidoLocal.com
• Content focused on Latin-America markets
specificities
• Contracts signed for the first time in the region
with Universal Music
• 100% legal
• International and experienced team with
complementary skills and knowledge
• Strong technological platform
• 18 months in the market.

Market situation
SonidoLocal.com

Broadband access
SonidoLocal.com
• 10.000.000 users in Colombia - + 50,6% en 2008 -
139.000.000 in Latin-America
• Broadband access: + 87.8% in 2007
• 4 hours a day access for students and professionals
• Average speed: 591 Kbps in 2008 - 1.180 Kbps in
2010 according to Alfonso Gómez - Director of
Telefonica Latin-America.

Trends
SonidoLocal.com
• Students and professionals are now daily digital
users
• Music is more and more digital
• Facebook (3.753.120 registered users in Colombia)
showed the potential of a good quality website in
the region
• Broadband access will grow by 50-60% a year in the
next 5 years.

Facts
SonidoLocal.com
• 84% of sales and 77% of radio streams in the region
are spanish-speaking music
• 70% of sales are regional music
• Strong growth of broadband access
• Expansion of Digital Habits
• First Streaming On Demand website in Latin-
America & low competition.

Competition
SonidoLocal.com
• Direct Competitors in Latin-America
Country Market Share + -
Music in
Last.fm USA 123.645 users World Leader
Spanish < 10%
Restricted
Pandora USA 0 -
Access
Restricted
Rapsody USA 0 -
Access
Music in
Deezer Europe Low Design
Spanish < 10%
Editorial Music in
Jiwa Europe Very Low
Content Spanish < 5%

Competition
SonidoLocal.com
• Indirect Competitors in Colombia
Type Market Share + -
218.500 visits / El Tiempo No Multimedia
Vive.in Editorial Site
month Group content
99.200 visits / No Multimedia
Planb.com.co Editorial Site Semana Group
month content
America Movil High prices /
Ideas Comcel Online Seller Comcel users
Group few content
Launched in Telefonica High prices /
Movistar Online Seller
November 08 Group few content
Illegal
P2P High Free Content Illegal
Downloads

Listen, read, watch,
discover and share
SonidoLocal.com

Listen
SonidoLocal.com
• Free Streaming On Demand website focused on
regional tastes
• Contracts with Universal Music, Discos Fuentes,
Codiscos and 120+ local Indies bands
• We are about to close the definitive contract
with EMI Music (currently having ongoing
monthly agreements)
• We are currently in negotiations with Warner
Music & Sony BMG
• We currently have 30.000 tracks available and
will have 500.000+ in 12 months.

Read - Plan
SonidoLocal.com
• Users can find music news about local and
international bands thanks to our editorial team and
EFE & Reuters bases
• Users can find events in their city, choose their plan
and share them with their friends and contacts.

Discover - Share
SonidoLocal.com
• We help users to discover new music thanks to our
unique recommendation system based on Amazon.com
model (those who listened to x also listened to y)
• SonidoLocal has social options so that users can share
their music with their friends and through main social
websites in the region (Facebook, Twitter, Last.fm...).

Facebook
SonidoLocal.com
• Facebook is a popular, free-access social networking website
where users can add friends, update their personal profile,
upload photos and install apps.
• 3.650.000+ users in Colombia / more than 7.000.000 in
Latin-America
• Facebook provides an application development and group
creation systems - 100% free
• We currently have:
• 4 apps with (7200+ users)
• 1 group and 1 page (500+ members)

Mobile access
SonidoLocal.com
• We are working on the mobile version of our website
accessible from any Wap 2.0 cell phone
• We are also working on an iPhone app that will allow
registered users to have access to their plans, music
and interactive radios.
• Once in the market we’ll adapt this app to Nokia, Sony
Ericsson and Blackberry platforms.

Strengths
SonidoLocal.com
• Search engine with integrated results
• Nearly 30.000 selected songs available
• Ajax motor to customize users experience
• Dynamic player that allows users to browse the wesbite
without any music interruption
• Coverflow and classic navigation system
• Music recommendation engine
• Social options to share music and events
• High quality Sound (128kbps)
• Google App Engine & Amazon S3 technologies.

Content providers
SonidoLocal.com

Content providers
SonidoLocal.com
• Universal Music
• 27% of market share in Latin-America
• Signed contract
• Content already available
• Bands: Juanes, Babasonicos, Daddy Yankee, U2,
Metallica, Nirvana, Bjork...

Content providers
SonidoLocal.com
• Discos Fuentes
• Strongest regional company
• Signed contract - content already available
• Bands: Miguel Morales, Joe Arroyo...
• Codiscos
• Strong regional company
• Signed contract - content already available
• Bands: Binomio de Oro, Maelo Ruiz, Kraken,
Los Inquietos, Johnny Rivera...

Regional indies band
SonidoLocal.com
• Indies band
• Their strong presence in the regional market is
a Latin-american specificity
• We have strong relations with more than 120
indies bands in the region
• Bands: La 33, Chocquibtown, De Lux Club, 1280
Almas, Lucrecia, Bomba Estereo, Calambuco,
Asdrubal...

Content providers
SonidoLocal.com
• EMI Music
• 24% of market share in LatAm
• Pre-agreement signed (currently having ongoing
monthly agreements)
• Content already available
• Bands: Cabas, Fonseca, Aterciopelados, Sanalejo,
Miranda, Juan Luis Guerra, Coldplay, Moby,
Queen, Radiohead...

Content providers
SonidoLocal.com
• The Orchard
• Biggest independant music provider in the world
• Owner of La Fania digital catalogue
• Currently closing the deal
• Sony BMG & Warner Music
• Currently in negotiations

Technical platform
SonidoLocal.com

Technologies
SonidoLocal.com
• Hosting: Amazon.com S3 cloud computing
hosting system used by CBS for their videos
that provides unlimited storage and web-scale
system
• Platform: Google App Engine that allow us to
build and host our web applications on Google's
infrastructure
• Both were validated by Universal Music and EMI
Music security commission
• Both are scalable and charged for
bandwidth use

Legal aspects and
international development
SonidoLocal.com

Copyrights
SonidoLocal.com
• We currently have full copyright licence for
Colombia with Sayco and Acodem, local
collecting societies
• First time licence in Andean Region
• Open gate to any country licence in LatAm
thanks to the Acuerdo de Santiago

Development
SonidoLocal.com
• Now: Colombia
• 1st step: Venezuela,
Equador, Peru, Chile,
2nd Step Argentina, Bolivia, Uruguay,
Now Paraguay
• Time to Market: 2
months
1st Step
• 2nd step: Mexico and
Central America
• Time to market: 6
months

Business Model
SonidoLocal.com

Freemium
SonidoLocal.com
• Freemium is a business model that offers basic
services for free, while charging a premium for
advanced or special features.
• This model currently exists in Last.fm, Pandora,
Flickr, LinkedIn and many other Web 2.0 services.
• We allow users to choose between 2 solutions to
listen to music:
• 100% free version - ad-supported
• 3 USD / month subscription with special
features

Premium
SonidoLocal.com
• Monthly subscription sytem
• 3 USD a month (30 USD a year) to be paid by Google
Checkout system
• Benefits:
• No ads
• Unlimited personnal playlists
• Personal radios
• Priority access during peak traffic times
• Beta versions and new options access

Free
SonidoLocal.com
• The free service is ad-supported
• We have digital marketing supports in every
section of our website (3 banners, skins of the
player, sponsorship of section...)
• We have strong relations with local and
international agencies (Publicis, Leo Burnett, OMD,
Havas Digital, i-network...)
• We already sold campaigns to Nokia, Coca-Cola,
Procter & Gamble, Pepsi group...

Examples
SonidoLocal.com

Digital Marketing
SonidoLocal.com
• For its relations with EMI Music and Universal Music
SonidoLocal is also a provider of digital music solutions to
main brands and agencies
• We provide free downloads, interactive streaming playlists
in marketing campaings in the whole Latin-American
region
• In December 2008 we developed on the Colombian
market the first marketing campaign in Andean Region
that provided free, legal and DRM-free Mp3s from local
and international EMI Music artists to Veet customers
(Reckitt Benckiser group)
• We are currently planning actions with main brands and
agencies in the region

Examples
SonidoLocal.com

Contact
SonidoLocal.com
• Jerome Sutter
• jerome@sonidolocal.com
• twitter: sonidolocal
• Site: http://www.sonidolocal.com