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

2. The consumer is now in control.
November 12, 2007 eMusic Confidential

3. Their life is on-demand and
self-programmed
• TiVo
• Blogs
• Pandora
• Netflix
• iPod + iTunes
• YouTube
• Facebook
• Twitter
Oct 20 2005 eMusic Confidential

4. Consumer Entertainment Choices Predominate
Oct 20 2005 eMusic Confidential

5. 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

6. 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

7. Music, books, audio books and TV
have been sold and broadcast in the
clear for decades.
November 12, 2007 eMusic Confidential

8. Relative price of
CD, DVD, video game
Oct 20 2005 eMusic Confidential

9. 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

10. 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

11. One way to respond...
November 12, 2007 eMusic Confidential

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

13. 400,000+
Subscribers
November 12, 2007 eMusic Confidential

14. 200,000,000
Songs sold in last three years
November 12, 2007 eMusic Confidential

15. 7,000,000+
Songs sold per month
November 12, 2007 eMusic Confidential

16. 8,000,000+
Unique visitors per month
November 12, 2007 eMusic Confidential

17. 3,600,000 tracks
320,000
artists
33,000labels
November 12, 2007 eMusic Confidential

18. MP3
no DRM
November 12, 2007 eMusic Confidential

19. 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

20. Music
Audiobooks
November 12, 2007 eMusic Confidential

21. 100,000+
Audiobooks sold in first 120 days
November 12, 2007 eMusic Confidential

22. Audiobooks US market (2006)
90% Audible/iTunes
$140M Digital
$900M Physical
November 12, 2007 eMusic Confidential

23. 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

24. 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

25. 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

26. 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

27. Oct 20 2005 eMusic Confidential

28. [Screenshot]
November 12, 2007 eMusic Confidential

29. [eMusic Remote Screenshot]
November 12, 2007 eMusic Confidential

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

31. 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