SonidoLocal.com, the first music-on-demand startup in Latin America

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An introduction to my startup SonidoLocal.com, the first music on demand startup in Latin America created in 2007 in Colombia.
Similar to Deezer or Spotify, this freemium, cloud-based service was the first one in the region that allowed users to listen for free and legally thousands of songs, streaming their on their device.

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SonidoLocal.com, the first music-on-demand startup in Latin America

  1. 1. SonidoLocal.com : The first music on demand startup in Latin America Jerome Sutter – February 2009
  2. 2. •  SonidoLocal is the first legal Streaming On Demand website in Latin America •  Users can listen music of their favorite artists, create and edit their playlists, even with a free account •  They can also share with friends songs, news and events from their favorite bands •  SonidoLocal aims to become the N°1 website about music in Latin America thanks to its design, options and content. SonidoLocal.com
  3. 3. •  The Local Sound (Sonido Local in Spanish) is a key component 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 of most listened songs, •  SonidoLocal.com is the only website in the region that allows users to listen to international artists and regional bands (indies or signed with regional companies). Why SonidoLocal.com ?
  4. 4. •  Already 30.000 selected songs available •  Search engine with dynamic results while typing •  Dynamic player 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) •  Ajax motor to fasten and customize the user experience •  Fast buffering thanks to our cloud based hosting on Amazon S3. User experience
  5. 5. User interface
  6. 6. User interface
  7. 7. User interface
  8. 8. •  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. Our target market
  9. 9. •  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 with a Beta version Our strenghts
  10. 10. Market Situation SonidoLocal.com
  11. 11. •  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. Broadband Access
  12. 12. •  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. Trends
  13. 13. •  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 •  Low competition. •  First Streaming On Demand website in Latin America Market facts
  14. 14. •  Direct Competitors in Latin America Competition Country Market Share + - Last.fm USA 123,645 users World leader Music in Spanish <10% Pandora USA - - Restricted Access Rapsody USA - - Restricted Access Deezer Europe Low Design Music in Spanish <10% Jiwa Europe Very Low Editorial Content Music in Spani <5%
  15. 15. •  Indirect Competitors in Colombia Competition Type Market Share + - Vive.in Editorial Site 218.500 visits / month El Tiempo Group No multimedia content PlanB Editorial Site 99.200 visits / month Semana Group No multimedia content Ideas Comcel Online Downloads Comcel users America movil Group High prices / few content Movistar Online Downloads Launched in November 08 Telefonica group High prices / few content P2P Illegal downloads High Free content Illegal
  16. 16. Listen read, watch, discover and share SonidoLocal.com
  17. 17. •  Free Streaming On Demand service focused on regional tastes (Salsa, Merengue, Latin Rock…) •  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. Listen
  18. 18. •  From their personal homepage, users can : •  Read news about local and international bands thanks to our editorial team and EFE & Reuters bases •  Plan the next shows they will attend in their city and share them with their friends and contacts. •  All content will be provided by our editorial team and the databases of EFE and Reuters. Read - Plan
  19. 19. •  We help users 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 favorite music with their friends on our website and on main social websites used in the region (Facebook, twitter, Last.fm...). Discover - Share
  20. 20. •  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) Facebook
  21. 21. •  A first version focused on editorial content is already available. We are currently working on the v2 accessible from any Wap 2.0 cell phone. •  We are also coding an iPhone app that will allow registered users to have access to their plans, music and interactive radios. •  Once in the app store we will adapt this app to Nokia, Sony Ericsson and Blackberry OS according to the share of each platform among our users. Mobile access
  22. 22. Content providers SonidoLocal.com
  23. 23. •  Universal Music •  27% of market share in Latin America •  Signed contract •  Content already available •  Bands: Juanes, Babasonicos, DaddyYankee, U2, Metallica, Nirvana, Bjork... Content providers
  24. 24. •  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... Content providers
  25. 25. •  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
  26. 26. •  EMI Music •  24% of market share in Latin America •  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
  27. 27. •  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 Content providers
  28. 28. Technological platform SonidoLocal.com
  29. 29. •  Files hosting: Amazon.com S3 cloud computing hosting system that provides unlimited storage and web-scale system •  Database: 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 according to bandwidth use Our platform
  30. 30. Our platform
  31. 31. Legal aspects and International expansion SonidoLocal.com
  32. 32. •  We currently have full copyright licence for Colombia with Sayco and Acodem, the local collecting societies •  It’s the first time such a licence is given in Andean Region •  It’s an open gate to any country licence in Latin America thanks to the “Acuerdo de Santiago” Copyrights
  33. 33. •  Now: Colombia •  1st step: Venezuela, Ecuador, Peru, Chile, Argentina, Bolivia, Uruguay, Paraguay •  Time to Market: 6 months •  2nd step: Mexico and Central America •  Time to market: 12 months Internationa expansion
  34. 34. Business model SonidoLocal.com
  35. 35. •  Freemium is a business model that offers basic services for free, while charging for a premium account with 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 Freemium
  36. 36. •  The free service is ad-supported •  We have advertising spaces 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... Free service
  37. 37. •  Monthly subscription sytem •  3 USD a month (30 USD a year) to be paid by Google Checkout system •  Benefits: •  No ads •  Unlimited personal playlists •  Personal radios •  Priority access during peak traffic times •  Beta versions and new options early access Premium service
  38. 38. •  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 campaigns in the whole Latin-American region •  In December 2008 we developed on the Colombian market the first 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 similar campaigns with main brands and agencies in the region. B2B Music provider
  39. 39. Veet download campaign
  40. 40. •  Site : http://www.sonidolocal.com •  Twitter: @sonidolocal Come and listen !

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