Phone Conference July , 2008 Dial-in Number: (712) 432-1699 Participant Access Code: 554022#
Market Overview As you may know, the recording industry is struggling to adapt to the increasing popularity in digital music.
Market Overview The major record labels have been unable to decipher the young consumers needs, only 10% of the bands they support end up generating positive cash flow.
Market Overview The weak revenue has triggered a rise in the amount of artist taking their chances with independent distribution. The “indie” market has grown but still hasn’t figured out a standard model to make money. This is the problem WAPTunes solves.
Purpose WAPTunes is a social networking site which empowers musical artists to self-publish, sell songs & ringtones, promote shows, reach their fan base and make money.
Widget Marketing Initiative The WAPTunes widget marketing initiative consists of two different proprietary widgets. 1. Ringtone Widget 2. WAP Widget
Widget Marketing Initiative • Ringtone Widget The artists get a widget from WAPTunes that they can post anywhere on the net (Myspace, Facebook, etc.) that allows them to sell their ringtones on their different web pages. This widget drives the buyer back to WAPTunes e-commerce.
Widget Marketing Initiative • WAP Widget The WAP widget can also be put on all of the artists’ web pages. This widget drives fans to get the WAP on their cell phones to listen to music / radio.
Widget Marketing Initiative How the WAP Widget works: • You put in your cell phone number on the WAPTunes website • You receive a text message on your cell • You open the text, which allows you to open the WAP on your cell phone • From the WAP you can hear the music of the artist you’ve selected as well as the WAPTunes radio stations.
Viral Distribution WAPTunes will have a viral distribution feature that allows users to recommend WAPTunes to all their friends in their email address book. This feature is also used by StumbleUpon.com which has acquired millions of users.
Marketing Phase 1 • We get musical artists to sign-up and upload their content to WAPTunes.com Phase 2 • We continue to sign artists, and we begin to get fans to visit the site for their favorite artist or radio station.
Marketing How do we get bands to sign up? What incentives drive them to use WAPTunes as their primary site as opposed to Myspace, PureVolume, Virb, Speakerheart, etc?
Other Draws Aside from providing new ways for artists to sell music to their fans, what else sets WAPTunes apart from other music sites?
Other Draws WAPTunes is splitting song and ringtone sales with the artist: 80/20.
Other Draws Compare this 80/20 with the iTunes split of 60/40. Where you’d rather sell your music? OR
Other Draws Myspace doesn’t even allow musicians to sell their music from the site.
Other Draws That is not the only thing that sets WAPTunes apart from the competition.
Other Draws Unlike Myspace and other music sites; WAPTunes shares ad dollars with the bands that are attracting people to the site.
Other Draws In addition to sharing ad sales dollars with the artist that is generating them, WAPTunes is donating a percentage of ad sales to major, popular charities.
Other Draws Aside from these reasons…
Other Draws What’s the point of throwing away money, even if it is a good cause?
Other Draws BECAUSE NO OTHER MUSIC SITE IS DOING IT.
Other Draws Not only is no one else doing it, philanthropy is a trend that has been on the rise since the 80’s. From the We Are the World Foundation to Brad and Angelina donating $1 million to African schools, we are sure to see a constant rise in social awareness and concern.
Other Draws Remember the Lance Armstrong bracelets? Wildly ugly, yellow, rubber bands… for a good cause.
Other Draws Not only are charities wildly popular right now, but no other music site tells the musicians: “we’ll split song and ringtone sales 80/20 with you, give you a percentage of the ad sales your page generates and also donate a percentage of the ad sales to your favorite charity.”
Other Draws To sum up what WAPTunes does differently: • We have a WAP application which allows artists to reach fans in a new way • We give musical artists a per cent of the ad sales their page generates • We split all music and ringtone sales 80/20 • We donate a per cent of ad sales to charity
Other Draws These fiscal and socially responsible points are all “hot items” in the indie music scene and will make the WAPTunes viral marketing campaign have a life of its own.
Other Draws Bands would start using their profiles on other sites to re-direct their fans to their WAPTunes page because the other websites don’t pay the bands a percent of the ad revenue their page generates.
Other Draws Bands other profiles would also be sites that re-direct the fans to WAPTunes if they have one of the WAPTunes widgets posted.
Other Draws The WAPTunes viral marketing campaign will be a force to be reckoned with.
Phase 1 The mission of Phase 1 is to get 3,000 bands signed up in 90 days, specifically targeting the Nashville music scene.
Phase 1 – Expenses Subtotal $364,866
Phase 1 – Website Ad Revenue At $2 and selling only 25% of the available inventory, the website ads will generate $7,875.00 in Phase 1.
Phase 1 – Text Ad Revenue At $.07 and selling only 25% of the available inventory, text ads will generate $2,460.94 in Phase 1.
Phase 1 – WAP Ad Revenue At $3 and selling only 25% of the available inventory, the WAP ads will generate $39,375.00 in Phase 1.
Phase 1 – Ringtone Sales If each band only sells four ringtones a month, ringtone sales will generate $10,500 in Phase 1.
Phase 1 – Song Sales If each band only sells ten songs a month, song sales will generate $7,000 in Phase 1.
Phase 1 – Income Summary Total income in Phase 1 - $67,210
Farewell Thank you very much for your patience during this presentation. This conference will now be opened for a Q & A session.