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NASSCOM Leadership Forum
14 February 2014
Paramjit Jassal
Senior Vice President
Global Finance Operations
UMG - Worldwide leader in the Music Industry

We are an Intellectual Property business: Artists, Composers, Brands and Abs...
Non-Recorded Music revenue is growing

•

Over the last 10 years artists are becoming / creating brands in their own name ...
Format evolution: Physical to Digital

•

Over the next five years the Music Industry expects the decline of physical to c...
Top 5 markets dominate the industry

MARKET

TOP 5

OTHER
DEVELOPED

% of Total Revenue

75%

16%

EMERGING

7%

UNEXPLOIT...
Increasing share of subscription format
"Traditional" to "Transitioned"
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Large...
Consumer Demand vs Artist Proposition

TRADITIONAL
PHYSICAL

DIGITAL DOWNLOADS

Ownership

Unbundling (albums / tracks)

E...
pj@umusic.com
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NASSCOM ILF 2014: Transformation to Transfiguration: Innovation Givs Us a Brand New Identity - Paramjit Jassal, Universal Music Group

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Transcript of "NASSCOM ILF 2014: Transformation to Transfiguration: Innovation Givs Us a Brand New Identity - Paramjit Jassal, Universal Music Group"

  1. 1. NASSCOM Leadership Forum 14 February 2014 Paramjit Jassal Senior Vice President Global Finance Operations
  2. 2. UMG - Worldwide leader in the Music Industry We are an Intellectual Property business: Artists, Composers, Brands and Abstract Emotional Experience RECORDING € 15B PUBLISHING Industry Industry Composers Performers € 5.5B RECORD LABELS MUSIC PUBLISHERS SINGLES / ALBUMS / VIDEOS SONGS / LYRICS B to B to C B to B RETAIL, DISTRIBUTION AND BROADCAST PLATFORMS
  3. 3. Non-Recorded Music revenue is growing • Over the last 10 years artists are becoming / creating brands in their own name / image / genre Music industry is generating revenue with strong growth rates from channels and promotional material which historically were never monetized Each artist is a recognizable brand... ... At the heart of an ecosystem … Brand Partnerships Rights ...that may specialize in a genre or crossover Social Media and Direct-To-Fan Deluxe Merchandising ...that may possess national or international appeal ...that may reinvent themselves many, many times! Live Publishing
  4. 4. Format evolution: Physical to Digital • Over the next five years the Music Industry expects the decline of physical to continue, but more than offset by the increase in digital and streaming subscription services • Other (Publishing, Merchandising and New Businesses) are expected to grow over the period 2013 2018 14% 9% 15% 16% 45% 22% 6% 27% 24% Physical 22% Digital Subscription Publishing Other – Brands / New Business
  5. 5. Top 5 markets dominate the industry MARKET TOP 5 OTHER DEVELOPED % of Total Revenue 75% 16% EMERGING 7% UNEXPLOITED 1% Brazil, India, China and Mexico US, Japan, Germany, UK and France - still represent the majority of recorded music revenues
  6. 6. Increasing share of subscription format "Traditional" to "Transitioned" 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Largest physical market Heavily physical market Heavily physical market Music DVDs Accelerating transition to Download Increasing Download penetration Limited Download presence Streaming / paid services new format Physical Free streaming stagnant Homegrown streaming service (Deezer) Emerging Market More than half physical Increasing Download penetration Mature Download like USA Streaming growing Growing paid subscriptions market Paid subscription growing Download Physical market now less than 50% Highest Download penetration Growing free Internet Radio presence Increasing # of paid subscriptions Streaming Other Emerging Market Physical piracy Download and Streaming growing Heavily on subscription Spotify Almost fully transitioned
  7. 7. Consumer Demand vs Artist Proposition TRADITIONAL PHYSICAL DIGITAL DOWNLOADS Ownership Unbundling (albums / tracks) Extras (artwork /lyrics) Create playlists STREAMING ON-DEMAND STREAMING “All you can eat” at fixed price INTERNET RADIO Can listen passively Free Free options Enhanced Can listen passively Create playlists Easily shared Portable RADIO Music discovery Free option Per Capita €100 67 CDs 675 Song Downloads PAID ~78,000 FREE ~143,000 ~295,000 <-> ~415,000 ~2,000,000+ Copyright / Legislation / Broadcaster / Performance Regulatory Dependent
  8. 8. pj@umusic.com
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