The document discusses the significance of mobile music in South Africa, highlighting the growing number of mobile internet users and the shift in the music business towards digital consumption. It emphasizes consumer engagement through mobile platforms and the importance of building relationships with users while providing opportunities for innovation in music distribution. The findings indicate a strong preference for music consumption via mobile devices among the youth demographic, with a notable percentage of music being downloaded for free.

1. music solution & mobile

2. Why go mobile in South Africa? vs +- 37 million owners +- 10 million access the mobile internet Huge room for growth in 2010 +-5 million owners +- 5 million access the fixed line internet

3. Difference between surfing the Fixed Line Internet vs Mobile Web vs HUNTERS BROWSERS

4. Music providing the stickiness factor to Brand’s Mobile Strategy

5. “ They say the music business is in trouble. No! The business of selling CDs is in trouble. This is a religion.” Michael Rapino Chief Executive Officer Live Nation

6. The paradigm in the music business has shifted, and I have to move with that shift. For the first time in my career, the way that my music can reach my fans is unlimited. The possibilities are endless. Who knows how my albums will be distributed in the future?” In a statement issued at the time of her deal with Live Nation, Madonna said: “

7. Music connects with people across all demographics. It is incredibly social, encouraging: SHARING CREATING RECOMMENDING RATING & DISCOVERING Help develop your community through the power of music

9. 70% OF 16-19 year olds would rather go a week without sex than a week without music. SOURCE: MARRAKESH RECORDS AND HUMAN CAPITA, UK

10. Your consumers are currently hanging out on Facebook, MXit, the mobile web, etc... Tweeting about their favorite song. Discovering new music on LastFM. Leaving comments for their friends on MySpace. Sharing playlists on iLike. Posting concert photos on Flickr. Every day, music fans are discovering new ways to find, share, enjoy, and even remix their favorite music, and then broadcasting their findings and favorites, their complaints, and their compliments to a global community that is listening 24/7.

11. Volume of unique users and frequency of music/ logo downloads in South Africa Source: AMPS 2007 RA (Adults 16 yrs+)

12. 95% of digitally-downloaded music is not paid for. SOURCE: RAZORFISH FEED STUDY

13. Top 25 Digital Artists in South Africa - January 2010 (42% market share)

14. Top 25 Digital Tracks in South Africa - January 2010 (42% market share)

15. Digital downloads in South Africa across the biggest portals: Local vs. International Sales % Value % CM-5 CM-4 CM-3 CM-2 CM-1 CM CM-5 CM-4 CM-3 CM-2 CM-1 CM Local = African Acts/Artists International = All Others CM = Current Month CM-1 = Current Month - 1 One Month YTD = Year To Date

16. A sample of answers to music profiling questions posed to our music base of over 500000 users Gender: Female 51% Male 49% Access the internet: Mobile 80% PC 3% Both 17% Age: Under 16 8% 16 - 19 18% 20 - 24 24% 25 - 34 31% 35 - 49 16% 50 + 3% Contract 28% Prepaid 72% Preferred Music: R'nB 44% Gospel 17% Pop 9% Rock 9% Afrikaans 8% Dance 6% Jazz 4% Urban 3%

17. A sample of answers to music profiling questions posed to our music base of over 500000 users Purchase Music: Phone 67% PC 30% Music Store 3% Listen to music: Phone 70% Hifi 13% Car 10% MP3 player 5% iPod 2% Transport: Public 56% Car 31% Lift club 13% Coolest Clothing Brand: Nike 23% Puma 19% Guess 17% Levis 13% Adidas 10% Billalbong 8% Diesel 6% Quiksilver 4% Best way for your bank to communicate with you: SMS 73% TV 9% At school 9% Radio 5% Billboard 2% Email 2%

18. “ In the past, people would tour to promote their albums; today they put out albums to promote their tours. The pendulum has swung.” SOURCE: MARRAKESH RECORDS AND HUMAN CAPITA, UK

21. The digital revolution has changed the way fans discover, share, and purchase music—forever. The good news? This shift to digital consumption has created the potential for virtually limitless new ideas and opportunities.

22. MOBILE MUSIC Engage. Interact. Innovate. Consumer engagement Positive brand interaction Effective targeting Authentic communication with large, diverse base Ability to build a loyal community Customer retention and repeat usage Consumer awareness of brand mobile site

23. The future is mobile

24. Why is mobile the future? Personal Permanently carried Always on Built-in payment mechanism Creative impulse Accurate measurement Social context

25. Developing communities Building relationships

26. Allow easy access to users who want to receive your message Move away from building SMS competition based databases Tips Vouchers Rewards Inside information Perks and benefits Feedback and comments Two-way communication Make them feel important and appreciated How to develop a mobile community

27. A Thumbtribe initiative.