An introduction to my startup SonidoLocal.com, the first music on demand startup in Latin America created in 2007 in Colombia.
Similar to Deezer or Spotify, this freemium, cloud-based service was the first one in the region that allowed users to listen for free and legally thousands of songs, streaming their on their device.
2. • SonidoLocal is the first legal Streaming On Demand
website in Latin America
• Users can listen music of their favorite artists, create and
edit their playlists, even with a free account
• They can also share with friends songs, news and events
from their favorite bands
• SonidoLocal aims to become the N°1 website about
music in Latin America thanks to its design, options and
content.
SonidoLocal.com
3. • The Local Sound (Sonido Local in Spanish) is a key
component in the Value Chain of the regional music
industry,
• 84% of sales and 77% of radio streams in the
region are spanish-speaking music,
• Salsa, Vallenato, Merengue, Latin Pop and Rock are always
in the Top 40 of most listened songs,
• SonidoLocal.com is the only website in the region that
allows users to listen to international artists and regional
bands (indies or signed with regional companies).
Why SonidoLocal.com ?
4. • Already 30.000 selected songs available
• Search engine with dynamic results while typing
• Dynamic player to browse the wesbite without any music interruption
• Coverflow and classic navigation system
• Music recommendation engine
• Social options to share music and events
• High quality Sound (128kbps)
• Ajax motor to fasten and customize the user experience
• Fast buffering thanks to our cloud based hosting on Amazon S3.
User experience
8. • Sex: Men and Women
• Age: between 15 and 55 years old
• Middle and Upper class
• Region: Latin-America (cities over 200.000 inhabitants)
• Total target - Colombia: about 6.500.000 people -
85.000.000 in whole Latin-America.
Our target market
9. • Content focused on Latin-America markets specificities
• Contracts signed for the first time in the region with
Universal Music
• 100% legal
• International and experienced team with complementary
skills and knowledge
• Strong technological platform
• 18 months in the market with a Beta version
Our strenghts
11. • 10.000.000 users in Colombia (+50,6% en 2008)
139.000.000 in Latin-America
• Broadband access: + 87.8% in 2007
• 4 hours a day access for students and professionals
• Average speed: 591 Kbps in 2008 - 1.180 Kbps in 2010
according to Alfonso Gómez - Director of Telefonica Latin-
America.
Broadband Access
12. • Students and professionals are now daily digital users
• Music is more and more digital
• Facebook (3.753.120 registered users in Colombia) showed
the potential of a good quality website in the region
• Broadband access will grow by 50-60% a year in the next 5
years.
Trends
13. • 84% of sales and 77% of radio streams in the region are
spanish-speaking music
• 70% of sales are regional music
• Strong growth of broadband access
• Expansion of Digital Habits
• Low competition.
• First Streaming On Demand website in Latin America
Market facts
14. • Direct Competitors in Latin America
Competition
Country
Market
Share
+ -
Last.fm USA 123,645 users World leader
Music in
Spanish <10%
Pandora USA - -
Restricted
Access
Rapsody USA - -
Restricted
Access
Deezer Europe Low Design
Music in
Spanish <10%
Jiwa Europe Very Low
Editorial
Content
Music in Spani
<5%
15. • Indirect Competitors in Colombia
Competition
Type
Market
Share
+ -
Vive.in Editorial Site
218.500 visits /
month
El Tiempo
Group
No multimedia
content
PlanB
Editorial Site 99.200 visits /
month
Semana Group
No multimedia
content
Ideas
Comcel
Online
Downloads
Comcel users
America movil
Group
High prices /
few content
Movistar
Online
Downloads
Launched in
November 08
Telefonica
group
High prices /
few content
P2P
Illegal
downloads
High Free content Illegal
17. • Free Streaming On Demand service focused on regional
tastes (Salsa, Merengue, Latin Rock…)
• Contracts with Universal Music, Discos Fuentes, Codiscos
and 120+ local Indies bands
• We are about to close the definitive contract with EMI
Music (currently having ongoing monthly agreements)
• We are currently in negotiations with Warner Music &
Sony BMG
• We currently have 30.000 tracks available and will have
500.000+ in 12 months.
Listen
18. • From their personal homepage, users can :
• Read news about local and international bands thanks to
our editorial team and EFE & Reuters bases
• Plan the next shows they will attend in their city and
share them with their friends and contacts.
• All content will be provided by our editorial team and the
databases of EFE and Reuters.
Read - Plan
19. • We help users discover new music thanks to our unique
recommendation system based on Amazon.com model
(those who listened to x also listened to y)
• SonidoLocal has social options so that users can share their
favorite music with their friends on our website and on
main social websites used in the region (Facebook, twitter,
Last.fm...).
Discover - Share
20. • Facebook is a popular, free-access social networking
website where users can add friends, update their personal
profile, upload photos and install apps.
• 3.650.000+ users in Colombia / more than 7.000.000 in
Latin-America
• Facebook provides an application development and group
creation systems - 100% free
• We currently have:
• 4 apps with (7200+ users)
• 1 group and 1 page (500+ members)
Facebook
21. • A first version focused on editorial content is already
available. We are currently working on the v2 accessible
from any Wap 2.0 cell phone.
• We are also coding an iPhone app that will allow registered
users to have access to their plans, music and interactive
radios.
• Once in the app store we will adapt this app to Nokia, Sony
Ericsson and Blackberry OS according to the share of each
platform among our users.
Mobile access
23. • Universal Music
• 27% of market share in Latin America
• Signed contract
• Content already available
• Bands: Juanes, Babasonicos, DaddyYankee, U2, Metallica,
Nirvana, Bjork...
Content providers
24. • Discos Fuentes
• Strongest regional company
• Signed contract - content already available
• Bands: Miguel Morales, Joe Arroyo...
• Codiscos
• Strong regional company
• Signed contract - content already available
• Bands: Binomio de Oro, Maelo Ruiz, Kraken, Los
Inquietos, Johnny Rivera...
Content providers
25. • Indies band
• Their strong presence in the regional market is a Latin-
american specificity
• We have strong relations with more than 120 indies
bands in the region
• Bands: La 33, Chocquibtown, De Lux Club, 1280 Almas,
Lucrecia, Bomba Estereo, Calambuco, Asdrubal...
Content providers
26. • EMI Music
• 24% of market share in Latin America
• Pre-agreement signed (currently having ongoing monthly
agreements)
• Content already available
• Bands: Cabas, Fonseca, Aterciopelados, Sanalejo, Miranda,
Juan Luis Guerra, Coldplay, Moby, Queen, Radiohead...
Content providers
27. • The Orchard
• Biggest independant music provider in the world
• Owner of La Fania digital catalogue
• Currently closing the deal
• Sony BMG & Warner Music
• Currently in negotiations
Content providers
29. • Files hosting: Amazon.com S3 cloud computing hosting
system that provides unlimited storage and web-scale
system
• Database: Google App Engine that allow us to build and
host our web applications on Google's infrastructure
• Both were validated by Universal Music and EMI Music
security commission
• Both are scalable and charged according to bandwidth use
Our platform
32. • We currently have full copyright licence for Colombia with
Sayco and Acodem, the local collecting societies
• It’s the first time such a licence is given in Andean Region
• It’s an open gate to any country licence in Latin America
thanks to the “Acuerdo de Santiago”
Copyrights
33. • Now: Colombia
• 1st step: Venezuela,
Ecuador, Peru, Chile,
Argentina, Bolivia, Uruguay,
Paraguay
• Time to Market: 6
months
• 2nd step: Mexico and
Central America
• Time to market: 12
months
Internationa expansion
35. • Freemium is a business model that offers basic services for
free, while charging for a premium account with advanced
or special features.
• This model currently exists in Last.fm, Pandora, Flickr,
LinkedIn and many other Web 2.0 services.
• We allow users to choose between 2 solutions to listen to
music:
• 100% free version - ad-supported
• 3 USD / month subscription with special features
Freemium
36. • The free service is ad-supported
• We have advertising spaces in every section of our website
(3 banners, skins of the player, sponsorship of section...)
• We have strong relations with local and international
agencies (Publicis, Leo Burnett, OMD, Havas Digital, i-
network...)
• We already sold campaigns to Nokia, Coca-Cola, Procter &
Gamble, Pepsi group...
Free service
37. • Monthly subscription sytem
• 3 USD a month (30 USD a year) to be paid by Google
Checkout system
• Benefits:
• No ads
• Unlimited personal playlists
• Personal radios
• Priority access during peak traffic times
• Beta versions and new options early access
Premium service
38. • For its relations with EMI Music and Universal Music,
SonidoLocal is also a provider of digital music solutions to
main brands and agencies
• We provide free downloads, interactive streaming playlists
in marketing campaigns in the whole Latin-American region
• In December 2008 we developed on the Colombian market
the first campaign in Andean Region that provided free,
legal and DRM-free Mp3s from local and international EMI
Music artists to Veet customers (Reckitt Benckiser group)
• We are currently planning similar campaigns with main
brands and agencies in the region.
B2B Music provider