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4. Meet the experts
Erin Watson
CEO
Sheisthe3rdexecutivetoleadthe
companysincethecompanywas
foundedin1996.
Nick Miller
Developer
NickMillerhasbeenasoftware
writeranddevelopersince1996.
Hislanguagesandtechnologies
include:Ajax
Jack Holmes
Musician
JackHolmesismorethanjustyour
typicalmanfromMongoliawitha5
foothandlebarmustache.He’salso
quitepossiblythebestbackwards
yodelerinallofAsia.
Our team
5. Subscription model Listening services Returning customer
Streaming is
the new black
Streaming and subscriptions surge Subscription services, part of an
increasingly diverse mix of industry revenue streams, are going from
strength to strength. Revenues from music subscription services — grew by
51.3 per cent in 2013, exceeding US$1 billion for the first time and growing
consistently across all major markets.
6. It’s growing rapidly
Global digital music revenue from 2004 to 2013
(in billion U.S. dollars) - 5.9 billion US Dollars
• Norway is leading streaming music
market worldwide with 48%
• Spain ranked as the second biggest music
streaming market in the world
• Japan is much below the market average
scoring 15% worldwide
Here are the facts
7. 2014
All the plans will be presented during our annual
meeting on January 1st 2015. Schedule as follows:
• July 2014 - drafted plans ready for revision
by senior management.
• September 2014 - budget review and
calibration of the plans.
• December 2014 - final plan submission
and corrections being made.
Planning schedule
8. Streaming and subscriptions surge Subscription
services, part of an increasingly diverse mix of
industry revenue streams
▪ Norway is leading streaming music
market worldwide with 48%
▪ Spain ranked as the second biggest music
streaming market in the world
Leading music streaming markets worldwide
in 2011, based on penetration rates,
statista.com
Leading music
streaming markets
worldwide
0
15
30
45
60
2011 2012 2013 2014
Norway Spain Japan
9. Levinson- 11%
Furlasity- 29%
14% - Baxeritas
29% - Benefica
9% - Solitary
Subscription
market
Based on 2014 sales
Companies
winning the
race so far
Streaming and subscriptions surge Subscription services, part of an
increasingly diverse mix of industry revenue streams, are going from
strength to strength
10. Outside the
global top 10
Outside the global top 10 markets, 15 territories saw overall growth in 2013:
Argentina, Central America, Chile, Colombia, Denmark, Greece, Iceland,
Netherlands, Norway, Paraguay, Peru, Russia, Sweden, Taiwan and
Venezuela.
15
30
45
60
2011 2012 2013 2014
Argentina Chile
Columbia Denmark
Greece
11. Launch of the mobile app
iOS application
20% of iPhone users who access online
content use their devices to stream music
or listen to internet radio.
Our business to business applications
have a lot of expert users .
Look and feel introduction
Mobile app
12. Norway-30%
Spain - 30%
10% - USA
20% - Japan
10% - Mexico
Market recap
Digital music
advantages
are obvious
A diverse global market Geographically, the world music market is highly
diverse, with markets growing at different speeds and favouring different
consumption models. This is borne out by consumer research conducted
by Ipsos MediaCT for IFPI in November 2013
A diverse global
market
13. First plan Second plan Third plan
$10per year
$50per year
$80per year
20music/projects
Sendanunlimitednumber
ofemailswithamonthly
account.
100 market limit
20photos/project
40music/projects
Purchase email credits that
never expire.
150 market limit
40 photos/project
80music/projects
Useourrocksolid
infrastructuretopoweryour
emailmarketing.
Unlimited
80 photos/project
Let’s fit a plan into your needs
Pricing strategy
14. We launched our app during a conference event
in September 2014. What happened next?
▪ We dominated New York City and east
coast states
▪ We moved forward into east coast states
with San Francisco being on top
▪ Further domination in all states.
Number #1 in our Appstore category.
Our market share on US market since
September 2014.
>3M >1M >500K
70%
USA application downloads
App downloads
15. 2012
2013
2014
2015
2016
05.16
07.25
01.06
04.17
04.17
Milestones
$49 000 PREDICTION based on
previous years.
$59 000 PREDICTION based on
previous years.
0
20
40
60
80
2012 2013 2014 2015 2016
Present sales Expected sales
$32 000 sales on in the first
year
$47 000 sales during the
second year
$48 000 revenue in our third
year operating
17. Culture is the behavior of humans who
are part of an organization.
A culture is the values and practices
shared by the members of the group
The values that contribute to the unique
social and psychological environment
Corporate culture is implied, not
expressly defined, and develops
organically over time
A
B
C
D
from NYC to Berlin
Understand
your culture
18. Since we are a leading provider of digital services to organizations
worldwide , we can bring ideas, best practices and experience.
Revenue
Steady growth with
fortune 500 revenues
Mobile
Mobile first design is
in our DNA.
Timing
We entered the
market just in time
Market Research
We’ve always known
that search is king
What makes
us unique
19. Direct competition Indirect competition
Competitive advantage occurs when an organization acquires or
develops an attribute or combination of attributes that allows it to
outperform its competitors. These attributes can include access to
natural resources, such as high grade ores or inexpensive power, or
access to highly trained and skilled personnel human resources.
Bleeding
edge
Lundberg Easyfi
x
Flowebas
e
Squares Roundbase Fisher
s
3things Outbound Leaf
20. We believe any business has a chance to stand out. It's not just the guys
in digital field who feel this way. We are facing a revolution.
Sky is the limit
21. 75%
11%
17%
We identify the most important
technology mergers.
Each acquisition is for the
respective company.
Sales in 2014Sales in 2013 Sales in 2015
11%salesrisingmaintaining
marketshare
Sales report
2013-2015
Most important impact factors
There are five major external forces that affect our sales and
marketing efforts. They operate outside of any specific organization and
companies are, for the most part, at their mercy.
22. HR is a potential
employee's first impression
Put it in writing and set
expectations upfront
Screen for culture fit
Go hi-tech or go home
1
2
3
4
Keep your eye out for
who you want to hire5 „Hire slow, fire fast” - is well on its
way to becoming the favorite cliché
How to hire smart and fire smart
Talent search
23. Market entry
scenarios
First we move into Argentina, Chile and Columbia and then
follow with Denmark and Greece.
Country Main market Growth Price per user Market Value
Argentina Subscription 0.45% $100 $5 000 000
Chile Streaming 1.60% $3 000 $10 000 000
Columbia Streaming 5.14% $5 000 $2 000 000
Denmark Subscription 3.56% $200 $18 000 000
Greece Mp3 8.80% $6 500 $2 000 000
A
B
We start with Denmark and Greece as a benchmark and move
forward into other countries.
24. Country vs.
Features
Outside the global top 10 markets, 15 territories saw overall growth in 2013:
Argentina, Central America, Chile, Colombia, Denmark, Greece, Iceland,
Netherlands, Norway, Paraguay, Peru, Russia, Sweden, Taiwan and
Venezuela.
Country Subscriptions Streaming Mp3 Live Radio
Argentina
Chile
Columbia
Denmark
Greece
25. Sed magna nunc, hendrerit ac dui eu, convallis consequat mi. Sed quis turpis et
lorem hendrerit auctor. Curabitur quis tellus ac quam luctus tincidunt ultricies
nec eros. Fusce semper sagittis arcu sed aliquet.
Focus on developing a great
product and don’t worry
aboutanythingelse.
Start selling as fast as you can
in order to see if you can add
value and bring traction to the
table.
Without numbers you can’t
prove anything. Gather your
dataassoonaspossible.
Track everything you can but
rememberthatbigdatamight
makeyouslowdown.
Develop Sell Analyse Track
Business
model
27. 7 Billion
phone users
30M
iOS user
10M
iOS apps
The market
is ready for us
Future projections
A major advance of this assessment of market change projections
compared with the local market is the large number of simulations.
28. 2015
2016
01.06
04.07
$48 000 sales
during the second
year
$49 000
PREDICTION
based on 2014
2014
01.06
$47 000 sales on in
the first year
Available on all screens
Product growth