Digital Business Models Geneva, 4th November 2010 Francis Keeling, VP Digital Universal Music Group International ConfidentialPage 1 WIPO Emerging Licensing Conference

Unlimited Music Mobile Subscription MP3 Bundles Stream & Keep Your Favourites Artist Clubs Free Streaming Ad Supported

The Digital Music Market Place Streaming services – Give consumers free access –Spotify, last.fm, Pandora, Orange Monkey A La Carte Stores – Give consumers products to own –iTunes, Amazon, MediaMrkt, Telecom, 7Digital Subscription Services – Unlimited catalogue at low cost –Nokia Comes with Music, Napster, Rhapsody, TDC Audio Video – Watch music videos through PC and Set Top Box –BT Vision, Canal, Virgin Media TV, VEVO ConfidentialPage 3

The Problem The development of these services is stunted by piracy –It is impossibleto compete with free Service Providers and Search Engines Take No Leadership or Responsibility The music industry depends on investment in new talent –To produce, market, promote and distribute –Our success depends on investment new artists, not old catalogue Future depends on investment in new services –But who will invest where free is the customers alternative? ConfidentialPage 4

Music Subscriptions & Internet Providers Offer huge opportunity for ISPs –Reduce churn, acquire new customers Entertainment strategy –3 screen model – PC, Mobile & Set Top Box They are better than piracy –Experience, Quality, Connectivity, Metadata, No Viruses Carrot & Stick Approach –Combined with anti piracy provisions Willingness of the Music Industry to launch services –To try new models & take risks! ConfidentialPage 5

What We Provide Comprehensive Licensing Process –Either International or Single territory –Universal Offices & Digital Teams in over 50 countries Full catalogue of repertoire –Artists sign rights on a country by country basis Content –Tracks / Albums / Videos in format required by retailers –Digital Delivery and Reporting systems (All metadata) Marketing Support –Promotional Assets (Images, Videos, Interviews, Appearances) –Advertising (TV ads / Outdoor tagging, eCRM) Further INVESTMENT in Artists! ConfidentialPage 6

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