Transcript Phonofile

Phonofile
Indie ownership
Transparency
History
• 1999 started with catalogue
• 2002 built own store (musiconline.no)
• 2009 merged with Artspages (Norway)
• 2009 acquired Klicktrack (Sweden)
• 2011 largest Nordic indie aggregator
Organization
Owners
Board
Norway
7 persons
Sweden one
person
Denmark
50%
FI, SA, ES,
EE 50%
Owners
• 29.4% FONO (association of
independent Norwegian record labels)
• 26% Alliance Venture (Norwegian VC)
• 12% NOPA (Norwegian association of
authors and composers)
• 32.6% Employees and smaller owners
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Board
Erling Andersen, chairman (FONO)
Erling Maartmann-Moe (Alliance Venture)
Petri Lundén (Klicktrack/Hagenburg management)
Giert Clausen (NOPA)
Dagfinn Sætra (former CEO Artspages)
Morten Lindberg (2L record label)
Yngve Dahle (Viaduct, business consultants)
Yngve Dahle (Viaduct)
Staff I
• Erik Brataas, CEO (started the
company in ´99, one of the most
experienced persons within digital
distribution)
• Magnus Solvåg, Trond Stian Førde and
Per Øyvind Øygarden, tech
development and delivery. Tech
platform is developed and maintained
in-house.
Staff II
• Knut Bøhn, financial manager (years of
experience in the international music
industry as studio engineer and mixer in
NYC with Nile Rodgers and others, with
Phonofile since ´01)
• Trond Tornes, Marketing Director, with
Artspages since ´04, after years of
experience within international booking
& management
Staff
1II
• Mona Fimreite, digital marketing
specialist, one of the best in the Nordic
with huge experience from brands and
music such as Helly Hanssen and Sony
Music.
• Rune Danielsen, Label Relations, years
of experience from physical distribution
companies, also a DJ for many years.
Staff
IV
• Daggan Stamenkovic, Country
manager Sweden. With Klicktrack (S)
since ´06, worked with label and design
for years.
• Troels Kjeldgaard, hired to service
Phonofile in Denmark through Volcano.
Volcano is a music service company
doing Artist Management, Booking,
Concert Promotion, Venue Operation
plus working on a strategic and
operational level for Phonofile.
Intnl partners
• Miguel Bustos - Detroit and Chicago
• Jordi Puy, Sound Diplomacy Barcelona
• Hilton "Roach" Roth - South Africa
(African Dope)
• Gapi / Ghamro - Ghana
• Toomas Oljum, mananger - Baltics
Subsidiaries
• Laura Sun - Beijing Artspages. Beijing
Artspages was launched as a co-owned
Norwegian and Chinese company in
2002. Laura has been working with us
from Beijing for almost ten years.
Phonofile
• Companies and labels
• 900 labels
• Also, distribution companies like
Border(S), Indie Distribution(N),
Ministry of Sound
• 300k tracks (up from 235k in one
year)
Overview
environment
D2F
Promotion
Artist/Com
poser/Prod
uction
Download
&
Streaming
Phonofile
Label
€
Media
€
€
€
Copyright
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Audience
€
Transparency
Digital sales world
2012
• Total revenue USD 5.6bn (up 9%)*
• Digital being 34% of total revenue*
• 3.6bn downloads (up 8% year on year)*
• 20m paying subscribers to music
services (significantly streaming), up
44% year on year)*
*IFPI
Digital revenues 2102
Phonofile figures
• Revenue 2009 - Xm NOK
• Revenue 2010 - 24m NOK
• Revenue 2011 - 38m NOK
• Revenue 2012 - 50m NOK
• Revenue 2013 - >60m NOK
• Share streaming revenue 2011 (up xx%
year on year)
Phonofile figures
Norway music market 2007-2011
Digital market - Download vs
Streaming
Digital market - Download vs
Streaming
Digital market - Download vs
Streaming
Perspectives
- Consolidations in the Music Industry
- UMG, Sony and Warner will continue to focus on market shares
- Few global services will have much of the power
- Streaming will be the dominant music consumer technology
- New markets opening (Deezer, iTunes, Spotify, Google, Nokia etc)
- The growth in advanced markets will flatten out
- Phonofile; organic growth and potential strategic partnerships
Phonofile milestones
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2004 first iTunes revenue
2008 revenue more than 10m NOK
2009 merger Artspages, acquire Klicktrack (S)
2011 revenue more than 35m NOK, signed with Ministry of
Sound, Representation on the Merlin board of Directors
2012 Launched Phonofile Analytics and FB shop
2013 Started massive skills development for independent
labels and built version 1.0 of Label Login Tools section
Trends
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9 in 10 of the most liked people on Facebook are artists
20%+ Spotify users convert to its premium service
Music is the most searched-for art form on the internet, and that
doesn’t happen by accident. It’s driven by investment in new music.
Max Hole, chairman and CEO, UMG International
7 of the top 10 most followed people on Twitter are artists
Case study: 2012 online use of Spotify v the Pirate Bay in the
Netherlands: The Dutch digital music market saw the biggest growth
in Western Europe at 66%
EUROPE radio vs sold tracks
Over 391 Million Tracks sold in 2012 Over 75 Million Radio Spins in
2012
(source IFPI)
Spotify vs Pirate
Bay?
Norway figures 2012-2013
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Q1 and Q2 2013 shows increase of 17% in total
music sales, compared with Q1 and Q2 2012.
Digital music sales
Streaming up 66% compared to Q1 and Q2 of 2012,
now representing 66% of the total music sales. (Up
from 46% in 2011).
Q1 and Q2 2013: Download sales down from 21%14% compared to same period 2012
Norway figures 2012-2013
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Total digital digitalt music sales (download and
streaming) Q1 and Q2 2013 – up 39% compared to
same period of 2012
Digital sales is a growing sector. Q1 og Q2 2013
makes 80% of the total music sales (up from 67%
Q1 and Q2 in 2012)
Physcial music sales
Decreased 29% compared to Q1 and Q2 2012
Physical sales is now 20% of all recorded music
sales so far in 2013, same period in 2012 being 33%
Phonofile milestones