TM ® INNOVATIVE WAYS OF GETTING THINGS DONE The Orchard is a registered trademark and The Orchard logo is a service mark of Orchard Enterprises NY, Inc. All Rights Reserved. 1 Challenge 2 The Orchard Founded in 1997 Leading Digital distributer of music and video Over 2.5 million tracks in the catalogue Source content locally Supply all digital outlets Sell globally Market and promote locally 3 Global Footprint Operations in 25 countries 4 Orchard Artists Afrika Bambaataa Alexander Shulgin Anthony Braxton Archie Shepp Art Brut Asha Bhosle Astor Piazzolla B.B. King Bad Brains Bay City Rollers Beck Benny Goodman Bill Laswell Billie Holiday Billy Bob Thornton Bing Crosby Black Flag Black Uhuru Blazin' Squad Blink-182 Bo Diddley Bob Marley The Brand New Heavies Bright Eyes C&C Music Factory Cab Calloway Carl Perkins Cecil Taylor Charles Mingus Charlie Parker Chris de Burgh Chuck Berry Chuck Loeb Coldplay Count Basie Curtis Mayfield Daniel Johnston Dave Brubeck Dead Kennedys 5 Orchard Artists Death Cab for Cutie Deep Purple Dinah Washington Dion Don McLean The Donnas Dr. John Duke Ellington Ella Fitzgerald Eric Dolphy Evan & Jaron The Fall Fats Domino Fito Paez Frank Sinatra George Carlin Glenn Miller Green Day Gregory Isaacs Hank Williams Harry Belafonte Helmet Herbie Hancock The Hives The Hold Steady Howlin' Wolf Ike & Tina Turner Immortal Technique The Jerky Boys Jerry Lee Lewis Jerry Seinfeld Jody Watley John Cage John Coltrane John Denver John Fahey John Lee Hooker John Legend Johnny Cash Keane 6 Orchard Artists Kim Waters King Sunny Ade The Kingsmen The Last Poets Lata Mangeshkar Laura Cantrell Leadbelly Lee “Scratch” Perry Lewis Black Lightnin’ Hopkins Little Richard Los Lobos Louis Armstrong Mad Professor Mahalia Jackson Masta Killa Matisyahu Medeski Martin & Wood Melvins Me'shell N'degeocello MF Doom Mikis Theodorakis Ministry The Minutemen Mojo Nixon Motley Crue Motorhead Muddy Waters Nat King Cole Nina Simone Norman Cook Nusrat Fateh Ali Khan Ofra Haza Ohio Players Ojos de Brujo Ol Dirty Bastard Operation Ivy Paul Oakenfold Perry Como The Pharcyde 7 Orchard Artists Pigface Pilar Montenegro Public Enemy Ralph Stanley Ravi Shankar Ray Charles Roger McGuinn RZA Sam & Dave Screamin’ Jay Hawkins Seu Jorge The Silos Simply Red Sir Mix-A-Lot The Skatalites Sly & Robbie Solomon Burke Son House Soulive Soundgarden Sublime Sufjan Stevens Sun Ra Swing Out Sister Taj Mahal Ted Leo / Pharmacists Tim Buckley Tom Waits Tone-Loc Townes Van Zandt Triumph The Turtles The Vandermark 5 Walter Beasley The Wedding Present Ween Wilson Pickett Yellowman Young MC Zakir Hussain 8 Why Won’t They Pay? 9 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Units (Millions) Albums 1200 1000 800 Download 600 8-Track Vinyl Cassette CD 400 200 0 We Know the Problem 11 The Customer 12 Take Action 13 3 Strikes 14 Sshhhh…a little secret 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Units (Millions) Albums 1200 1000 800 Download 600 8-Track Vinyl Cassette CD 400 200 0 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Units (Millions) Singles 1400 1200 1000 800 Download 8-Track 600 Vinyl Cassette CD 400 200 0 Combined Transactions 1600 1400 Units (Millions) 1200 1000 Download 8-Track 800 Vinyl Cassette 600 CD 400 200 0 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Value 19 Industrial Revolution 20 Current Monetization 21 Previous Monetization 22 Future Monetization 23 1000 Fans 24 ARPU 50% 500 $ 0.99 $ 495.00 10% 100 $ 10.00 $ 1,000.00 10% 100 $ 25.00 $ 2,500.00 10% 100 $ 50.00 $ 5,000.00 10% 100 $ 75.00 $ 7,500.00 7% 70 $ 100.00 $ 7,000.00 3% 30 $ 150.00 $ 4,500.00 $ 27,995.00 $ 28.00 25 Bundles £ 9.99 £ 24.99 £ 49.99 £ 99.99 26 Two Elements 27 Costs Profit = Value Profit Margin Perceived Value 28 Silver Bullet 29 Learned Helplessness 30 Contact Info: Scott Cohen Founder and VP International scott@theorchard.com @scottcohen_ The Orchard 1 Star Street London W2 1QD UK 31