Mark MulliganMarch 2013

Making Streaming Add Up

Spotify Deezer0

5

10

15

20

25

30

4

2014

36

3

PaidActive FreeInactive

www.midiaconsulting.com – Mark Mulligan - January 2013

24 million total*

26 million total* iTunes:

400 million credit card

linked accounts

Streaming’s Heavyweights

*Deezer total refers to registered users, Spotify total refers to reported Facebook users

(millions)

Streaming Music is Breaking Out of a Young Male Early Adopter Skew

13 to

15

16 to

20

21 to

24

16 to

24

25 to

34

35 to

44

45 to

54

55 to

64

Avera

ge0%5%

10%15%20%25%30%35%40%45%50%

38%

47% 45% 46%

39%35%

31%

23%

32%

Male Female0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

35%

29%

Streaming Music Penetration by Age

Penetration by Gender

% of all consum

ers

Source: EMI Insight Data, 2011

Streaming’s Is Growing Fast But Downloads Are Still Where The Money Is

2004 2005 2006 2007 2008 2009 2010 2011 2012$ 0

$ 1,000

$ 2,000

$ 3,000

$ 4,000

$ 5,000

$ 6,000Streaming + Sub-scriptions

(millions)Digital Revenue of the World’s Top 10 Music Markets

Dig

ital

mus

ic re

venu

e

Source: IFPI and MIDiA Estimates

Streaming and Subscriptions: 244%

Other digital: 22%

2008 to 2012 Growth

www.midiaconsulting.com – Mark Mulligan - March 2013

Spotify’s Total Users Growth Is Solid But Only Average for Streaming Music Services

Source: Company reported numbers

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 420

5

10

15

20

25

30

35

Spotify

Pandora

imeem

Last.FM

Million users

Months from launch of service

www.midiaconsulting.com – Mark Mulligan - January 2013

Experience is the

product!Streaming is

not a product!

Contact: Mark MulliganPhone: +44 (0) 780 11 66 712Email: mark@midiaconsulting.comWeb: http://www.midiaconsulting.comBlog: http://musicindustryblog.wordpress.comTwitter: @mark_mulligan

www.midiaconsulting.com – Mark Mulligan - January 2013