The consumer is now in control.




                        November 12, 2007   eMusic Confidential
Their life is on-demand and
self-programmed
•   TiVo
•   Blogs
•   Pandora
•   Netflix
•   iPod + iTunes
•   YouTube
•   F...
Consumer Entertainment Choices Predominate




                                    Oct 20 2005   eMusic Confidential
Content owners must adapt

•   On-demand
•   Interoperability
•   Consumer flexibility
•   Price
•   Recognize competition...
RShare                   ANts P2P
                                                     Gnutella
            P2P
          ...
Music, books, audio books and TV
have been sold and broadcast in the
         clear for decades.



                      ...
Relative price of
CD, DVD, video game




                      Oct 20 2005   eMusic Confidential
In music, DRM...
•   Built Apple’s dominance
•   Allowed iPod to be closed ecosystem
•   Discouraged legit buyers from buy...
In five years, there will be no more...
•   DRM on digital media
•   Release windows
•   24 hour viewing requirements
•   ...
One way to respond...




                   November 12, 2007   eMusic Confidential
N o2   Digital music service
       in the world




                           November 12, 2007   eMusic Confidential
400,000+
Subscribers



              November 12, 2007   eMusic Confidential
200,000,000
Songs sold in last three years




                                 November 12, 2007   eMusic Confidential
7,000,000+
Songs sold per month




                       November 12, 2007   eMusic Confidential
8,000,000+
Unique visitors per month




                            November 12, 2007   eMusic Confidential
3,600,000                tracks




320,000
           artists




33,000labels




                 November 12, 2007   e...
MP3
no DRM

         November 12, 2007   eMusic Confidential
The eMusic Customer

•   Targeting the under-served music consumer:
    25 – 54 year old
•   Generally appreciate music be...
Music
Audiobooks

        November 12, 2007   eMusic Confidential
100,000+
Audiobooks sold in first 120 days




                                    November 12, 2007   eMusic Confidential
Audiobooks US market (2006)
                                  90% Audible/iTunes

                                        ...
Problems with today’s digital audiobooks

• Only one major retailer
• High prices
• Proprietary Format
• Closed Eco-system...
Welcome to eMusic Audiobooks

• MP3 – plays everywhere!
• $10 per book for most books
• Plays on the devices you already
 ...
eMusic Audiobooks (beta)

•   Thousands of titles to start
•   Hundreds added every week
•   64Kbps stereo
    • Better th...
eMusic Publisher Partners

•   Random House       •   Brainsync
•   Naxos              •   L.A. Theatre Works
•   Hachette...
Oct 20 2005   eMusic Confidential
[Screenshot]




               November 12, 2007   eMusic Confidential
[eMusic Remote Screenshot]




                             November 12, 2007   eMusic Confidential
Own Your Music/Books
Don’t rent it.


                 November 12, 2007   eMusic Confidential
eMusic: the most compatible music/books
service in the world
•   Portable Players
     • iPod, Thompson, SanDisk, Phillips...
Pakman eMusic BEA Keynote June 08
Pakman eMusic BEA Keynote June 08
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Pakman eMusic BEA Keynote June 08

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David Pakman's Keynote presentation at 2008 BEA Expo in Los Angeles regarding eMusic's Audio Books service

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Pakman eMusic BEA Keynote June 08

  1. 1. The consumer is now in control. November 12, 2007 eMusic Confidential
  2. 2. Their life is on-demand and self-programmed • TiVo • Blogs • Pandora • Netflix • iPod + iTunes • YouTube • Facebook • Twitter Oct 20 2005 eMusic Confidential
  3. 3. Consumer Entertainment Choices Predominate Oct 20 2005 eMusic Confidential
  4. 4. Content owners must adapt • On-demand • Interoperability • Consumer flexibility • Price • Recognize competition • Aggressively compete • Broadly license - sell your content everywhere! • Easy access to buy product more important than distribution control Oct 20 2005 eMusic Confidential
  5. 5. RShare ANts P2P Gnutella P2P Ares Tor eMule Grokster Bit Torrent Free is everywhere. Entropy Kazaa Morpheus Limewire Freenet Blogs eDonkey GNUnet Azureus November 12, 2007 eMusic Confidential
  6. 6. Music, books, audio books and TV have been sold and broadcast in the clear for decades. November 12, 2007 eMusic Confidential
  7. 7. Relative price of CD, DVD, video game Oct 20 2005 eMusic Confidential
  8. 8. In music, DRM... • Built Apple’s dominance • Allowed iPod to be closed ecosystem • Discouraged legit buyers from buying • Slowed digital adoption • Placed competitors at disadvantage • Lotsa roadkill • Sony Connect • Yahoo! Music • MTV Urge • Musicmatch • AOL Music • Didn’t stop or slow piracy Oct 20 2005 eMusic Confidential
  9. 9. In five years, there will be no more... • DRM on digital media • Release windows • 24 hour viewing requirements • Arcane restrictions on how consumers consume Oct 20 2005 eMusic Confidential
  10. 10. One way to respond... November 12, 2007 eMusic Confidential
  11. 11. N o2 Digital music service in the world November 12, 2007 eMusic Confidential
  12. 12. 400,000+ Subscribers November 12, 2007 eMusic Confidential
  13. 13. 200,000,000 Songs sold in last three years November 12, 2007 eMusic Confidential
  14. 14. 7,000,000+ Songs sold per month November 12, 2007 eMusic Confidential
  15. 15. 8,000,000+ Unique visitors per month November 12, 2007 eMusic Confidential
  16. 16. 3,600,000 tracks 320,000 artists 33,000labels November 12, 2007 eMusic Confidential
  17. 17. MP3 no DRM November 12, 2007 eMusic Confidential
  18. 18. The eMusic Customer • Targeting the under-served music consumer: 25 – 54 year old • Generally appreciate music beyond the commercial mainstream – frustrated with the ubiquity of mainstream Top 40 music • Tech savvy • Broad genre appreciation: jazz, classical, world, dance, indie rock • Looking for guidance and happy to experiment • Expect freedom of their music • Seeking good value for music November 12, 2007 eMusic Confidential
  19. 19. Music Audiobooks November 12, 2007 eMusic Confidential
  20. 20. 100,000+ Audiobooks sold in first 120 days November 12, 2007 eMusic Confidential
  21. 21. Audiobooks US market (2006) 90% Audible/iTunes $140M Digital $900M Physical November 12, 2007 eMusic Confidential
  22. 22. Problems with today’s digital audiobooks • Only one major retailer • High prices • Proprietary Format • Closed Eco-system • Only plays on select players • DRM - Consumer-unfriendly restrictions November 12, 2007 eMusic Confidential
  23. 23. Welcome to eMusic Audiobooks • MP3 – plays everywhere! • $10 per book for most books • Plays on the devices you already own • Curated and merchandised by literary experts • Buy music and books in the same store November 12, 2007 eMusic Confidential
  24. 24. eMusic Audiobooks (beta) • Thousands of titles to start • Hundreds added every week • 64Kbps stereo • Better the fidelity of the competition • More than half of eMusic customers polled want to buy audiobooks • $9.99 - 1 book/month • $19.99 - 2 books/month • Single click to download, automatically synced to iTunes, WMP, Winamp November 12, 2007 eMusic Confidential
  25. 25. eMusic Publisher Partners • Random House • Brainsync • Naxos • L.A. Theatre Works • Hachette • Tantor Media • Blackstone • Phoenix Books • Penguin • Listen and Live • McSweenies • Reagent Press • BBC Worldwide • Audio Evolution • Simon & Schuster • Hay House Publishers November 12, 2007 eMusic Confidential
  26. 26. Oct 20 2005 eMusic Confidential
  27. 27. [Screenshot] November 12, 2007 eMusic Confidential
  28. 28. [eMusic Remote Screenshot] November 12, 2007 eMusic Confidential
  29. 29. Own Your Music/Books Don’t rent it. November 12, 2007 eMusic Confidential
  30. 30. eMusic: the most compatible music/books service in the world • Portable Players • iPod, Thompson, SanDisk, Phillips, Samsung, Sony, Microsoft Zune, etc. • Software • iTunes, Real Player, MS Windows Media Player, AOL Winamp, Yahoo Music Player, etc. • Stereo Devices • Polk, Harmon Kardon, Panasonic, etc. • Phones • Sony Ericsson, LG, Nokia, Motorola, Samsung, iPhone, etc. • Car Stereos • PhatNoise, etc. November 12, 2007 eMusic Confidential

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