JASPER DONAT PRESIDENT - MUSIC MATTERS JANUARY 2010

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1 AN EXCLUSIVE MIDEMNET/MUSIC MATTERS SURVEY INTO MUSIC CONSUMPTION AROUND THE WORLD IN ASSOCIATION WITH: JASPER DONAT PRESIDENT - MUSIC MATTERS JANUARY 2010

2 WHERE? WHAT? WHO? WHY? WHEN? Synovate Ltd.1

3 8,500 interviews in 13 markets Canada USA UK France Spain Hungary India China South Korea Hong Kong Philippines Brazil Australia Synovate Ltd.2

4 SO, WHAT MATTERS? Synovate Ltd. 3

5 63% passionate about music 6% Source: Music Matters and Synovate Global Music Study for MIDEM 2010 How passionate would you say you are about music? Rate your passion on a scale from 1 to 10, where Top 5/10 boxes

6 Two- thirds of adults like music Passionate about music (top 5/10 boxes) Global Spain Brazil UK Korea USA Canada France Phillipines India China Hungary Hong Kong Australia 27% 31% 39% 55% 63% 79% 79% 79% 77% 72% 71% 69% 67% 65% Source: Music Matters and Synovate Global Music Study for MIDEM 2010 and Synovate Ltd.5

7 Source: Music Matters and Synovate Global Music Study for MIDEM 2010 How passionate would you say you are about music? Rate your passion on a scale from 1 to 10, where 1 is Top 1/10 box2 14% would listen to music every minute of the day... if they could Synovate Ltd.6

8 49% Brazilians would listen to music every minute of the day... if they could How passionate would you say you are about music? Rate your passion on a scale from 1 to 10, where 1 is Top 1/10 box

9 Where do they listen?

10 Streaming is the new black ( for law abiding citizens ) Synovate Ltd.9

11 Legal Use Did in past month Stream music directly from a service such as MySpace, Spotify Paid to download a music track to my computer Paid to download a whole digital album to my computer Paid a monthly fee to listen to music on my mobile phone or on my computer Paid a monthly fee for music subscription services such as Napster 21% 14% 7% 8% 7% Synovate Ltd. 10

12 Legal Use Did in past month Stream music directly from a service such as MySpace, The Hype Machine, Seeqpod, Imeem, We7, Spotify etc. Paid to download a music track to my computer Paid to download a whole digital album to my computer Paid a monthly fee to listen to music on my mobile phone or on my computer Paid a monthly fee for music subscription services such as Napster, Rhapsody, MusicStation, Orange Musique Max, SFR Music etc Synovate Ltd. 11

13 Downloading and Streaming in the UK and US Did in past month Global UK USA Stream music directly from a service such as MySpace, Spotify 18% 21% 24% Paid to download a music track to my computer 14% 19% 26% Paid to download a whole digital album to my computer 7% 12% 15% Synovate Ltd. 12

14 29% Downloaded a song from the internet without paying for it 19% Used a file- sharing programme to share music with others Which of the following have you done in the last month?

15 Challenging markets Which of the following have you done in the last month? Downloaded a song from the internet without paying for it Used a file- sharing programme to share music with others China 68% China 37% South 60% Korea Spain 46% Spain 31% South 28% Korea India 23% Synovate Ltd. 14

16 Many still want to own music in physical format Synovate Ltd. 15

17 Which of the following have you done in the last month? 30% purchased a music CD in a store 11% purchased a music CD online Synovate Ltd. 16

18 Which of the following have you done in the last month? 11% purchased a bootleg, counterfeit or pirate music CD

19 Which of the following have you done in the last month? Top pirate CD markets Purchased a bootleg / counterfeit / pirate music CD in the last month Philippines 41% Brazil 21% China 14% Spain 11% Synovate Ltd. 18

20 Mobile music continues to take off Synovate Ltd. 19

21 Which of the following have you done in the last month? 8% Paid for mobile music apps 12% Paid to download a full length mobile music track Synovate Ltd. 20

22 Especially in South Korea and China Which of the following have you done in the last month? Paid to download a full length music track using my phone Paid for music apps on mobile phone 30% 13% South Korea 27% 16% China Synovate Ltd. 21

23 How do they consume music video?

24 TV remains a key for music videos Have watched music video in the last month 46% 57% 16% Synovate Ltd. 23

25 Young adults are consuming their music videos more diversely Below 35 years old years old Have watched music video in the last month TV 48% 64% Computer 33% 56% Mobile phone 8% 22% Synovate Ltd. 24

26 Mobile phone is key in Asia Have watched music video on mobile phone in the last month Global 16% China 20% India 38% Korea 18% Phillipines 23% Synovate Ltd. 25

27 live music

28 42% attended a live music concert in the last year Synovate Ltd. 27

29 Live music is most popular in developed markets Attended live music concert last year 58% 61% 69% 58% 77% 22% 34% 50% 27% 35% 11% 32% 63% Synovate Ltd. 28

30 Ancillary revenue sources

31 Opportunity for merchandise Bought in the past 12 months 16% 16% 11% 11% A live tour/concert DVD Ringtones, wallpaper etc. via mobile phone - Shirt or other clothing Other music/artist merchandise Synovate Ltd. 30

32 Live tour/concert DVD is popular among Western Europeans and Chinese Bought a live tour/concert DVD in the past 12 months 25% 23% 24% 24% 23% Synovate Ltd. 31

33 66% Koreans bought ringtones, wallpaper etc via mobile phone Which of the following did you buy in the past 12 months? Synovate Ltd. 32

34 Love Which of the following did you buy in the past 12 months? Australians British Spanish Americans Synovate Ltd. 33

35 Willing to view or listen to advertising for... Which of the following did you buy in the past 12 months? music download 45% music streaming 41%

36 Privacy Matters Willing to provide personal information in exchange for access to free... music download 25% music streaming 23% Synovate Ltd. 35

37 Are they interested to pay? How interested are you to pay for the following features? Exclusive unreleased MP3s Music videos Weekly updates from artists Priority access to booking tour/concert tickets Text alerts about upcoming shows and tickets availability Queue Jumper feature Two half price concert tickets - aways over two days Synovate Ltd. 36

38 Two half price concert tickets 31% How interested are you to pay for the following features? Priority access to booking tour/concert tickets 26% Music videos Exclusive unreleased MP3s - aways Text alerts about upcoming shows and tickets availability Weekly updates from artists Queue Jumper feature 24% Synovate Ltd. 37

39 FAIL TO THE THIEF! Americans are the most willing to pay How interested are you to pay for the following features? 70% 67% 67% 67% website Synovate Ltd. 38

40 19% How interested are you to pay for the following features? would give anything to meet their favourite artist/band Synovate Ltd. 39

41 One of Americans and Brits Third would give anything to meet their favourite artist/band Source: Music Matters and Synovate Global Music Study for MIDEM 2010 Which of the following statements do you agree or disagree with?

42 Thankyou Synovate Ltd. 41

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