This document appears to be a presentation about music streaming services and connected devices. It discusses the growth of Pandora and how it accounted for 6.3% of US radio listening in August 2012. It also notes that 58% of devices are still not connected. Several slides provide data on the smartphone and tablet markets and the growing number of IP-enabled household devices. The presentation emphasizes the opportunities in the global marketplace as services become available across more devices and platforms.

1. Music 4.5 Smart Radio
Sept 2012
www.imgtec.com

2. “If is difficult to get a man to
understand something when his
salary depends upon his not
understanding it”.
Upton Sinclair, Jr., 1935
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6. “WE ANTICIPATE CONTINUING LOSSES”
“We expect to continue to incur operating losses for the foreseeable future.”
“We expect to continue to incur significant operating and capital expenditures and, as a
result, we will need to generate significant revenues to achieve and maintain
profitability.”
“Although our revenues have continued to grow from quarter to quarter, we cannot
assure you that we will achieve sufficient revenues for profitability.”
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7. “Wall Street had been doing
business with pieces of paper; and
now someone asked for a dollar,
and it was discovered that the dollar
had been mislaid.”
Upton Sinclair Jnr,
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8. Acquisition by Yahoo!
In April 1999, Yahoo! acquired the company for $5.7 billion (or over $10,000 per user) in
stock and renamed it Yahoo! Broadcast Solutions.
Over the next few years Yahoo! split the services previously offered by Broadcast.com
into separate services, Yahoo! Launchcast for music and Yahoo! Platinum for video
entertainment. Yahoo! Platinum has since been discontinued, its functionality being
offered as part of two pay services, AT&T Yahoo! High Speed Internet and Yahoo! Plus.
As of May 2011, neither broadcast.com nor broadcast.yahoo.com are distinct web
addresses; both simply redirect to yahoo.com.
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9. Key Radio & Streamed Music Services
Competitive Overview : USA 2010
Segment Distribution 2010 Main Business Model
Revenues
Broadcast &
Conventional Radio $15,000m Audio advertising, sponsorship etc
online
Satellite, Mobile, Subscription thematic radio
SiriusXM $2,800m
Internet channels
Streaming music, ads &
Pandora Internet, Mobile $155m
subscription
Rhapsody Internet, Mobile $150m* Subscription music on-demand
Napster Internet, Mobile $80m (inc UK)* Subscription music-on-demand.
Other Internet radio (last.fm, Slacker, Mog etc) Streaming music, ads &
$60m*
subscription
Total Radio/Streaming Music Revenue Base $18,250m
Internet-Distributed Service Revenue (Inc Mobile) $450m
% of Total Radio Revenue 2.70%
*Futuresource estimates
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10. Pandora ended August 2012 with 56.2 million
active listeners; this was a 48% increase from
the same period last year.
The company accounted for 6.3% of all US
radio listening in August, an increase from
3.67% in the same period last year.
Guidance for full year revenue is between
$425 million and $432 million
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11. Not yet connected = 58% of devices
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12. “Not yet connected”
14 to 19 - 13%
20 to 34 - 39%
35 to 49 - 67%
50 + - 78%
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15. What’s very different today
To reach 50 million users….
Radio - 38 years
TV - 13 years
Internet - 4 years
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16. Global marketplace
iPod changed music
iPhone changed mobile
iPad riding the wave
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17. Android – huge potential
Services continue to be
confused and fragmented
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18. Smartphone and Tablet Markets
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19. IP Enabled Household Devices
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20. “I’m going to stop squandering
money for things I don’t want. I’m
going to stop accepting invitations,
and meeting people I don’t like and
don’t want to know. ”
Upton Sinclair Jnr,
20 © Imagination Technologies IMG Presentation – Confidential - Subject to NDA