AD screencast slides sept 2010

Amalgam Digital

Capitalizing on Creative

Transformation in the Music and Entertainment

Industry

Investor Briefing Summer/Fall 2010

Amalgam’s Mission

© Research 2.0 – Amalgam Digital Page -‐ 2

  Attract and promote the world’s best independent artists to the AD brand

  Provide aspiring independent artists with a highly accessible medium through which they can promote and sell their products

  Give music consumers an engaging online retail experience through highly creative promotional touch-‐points

Amalgam’s Attraction

© Research 2.0 -‐ Amalgam Digital Page -‐ 3

For Artists

  Respected brand in independent music community

  Instant “vendorhood”-‐ start selling and promoting immediately

  Full spectrum promotional services and the benefit of AD’s marketing channels

For Consumers

  Specially designed music experiences

  Lowest consumer prices

  High quality, DRM-‐free files

  Magnetic online portal -‐ enhanced music discovery

AD Investment Opportunity


  Capitalize on the saturated and fragmented music markets by amalgamating artist and consumer services

  Invest in one of the world’s most pioneering and respected independent music platforms

  AD is seeking growth capital to make technology investments in order to further its lead in multi-‐dimensional music-‐related experiences

“Amalgam Digital has its finger print on the pulse of Hip Hop’s future.”

– The Source Magazine

Living the Transformation


Jay Andreozzi Founder & CEO

  12+ years of distribution, marketing, and senior management experience   Director of International Sales & Marketing for LandSpeed Records   Doubled sales & profits for Traffic Entertainment Group, Inc. global business

Peter Spellman Advisor

  Director of Career Development, Berklee College of Music   30 years of entertainment industry experience as agent, manager, label rep and producer   Author of several music business handbooks, including “The Indie Business Power: A Step-‐By-‐Step Guide for

21st Century Music Entrepreneurs,“ and used in over 20 universities around the world   President of Music Business Solutions, a training resource for music entrepreneurs

Max Perlman Advisor – Legal Counsel

  Boston-‐based Corporate Attorney

Bernard Resnick Advisor – Entertainment/Legal Counsel

  MIDEM Featured Speaker

AD Vital Statistics


Headquarters: Boston, Massachusetts Founded : 2007

  First label to release digital-‐only albums   Tier 1 digital distribution relationships   Recognized by prominent media outlets (Rolling Stone, The Source)   Revenues: $23k, $193k, $931k (’07-‐’09)   Unique visitors: 18,200 (2009 avg/month)   Quarterly revenue per visitor: $8.78 (2009)   Advertisement revenue per visitor: $2.83 (2009)   Artists using platform: 1,515   Artists in database: 3,130   Artists on AD label: 10

Template for Growth


  Young Riot (YR) discovers AD

  Young Riot generates a following -‐ AD signs YR to label

 AD uses video instead of audio to promote YR. AD promotes YR by strategically placing videos in a variety of media outlets

 YR gets airtime on MTV, BET and commercial radio

 YR begins to expand his fan base and generates revenues and profits

 YR wears AD apparel enriching the cultural cache of the brand

 New revenue sources (e.g. clothing line, AD TV) emerge as YR/AD brand grows. Company attracts more talent fostering bigger brand value

 AD does YR live pay-‐for-‐view and reality TV show webcasts

 Fans appreciate access to artists’ process and fresh content

Capitalizing on Creative Transformation


  Amalgam Digital is seeking capital in a multiple phase round to fully build out its innovative music and entertainment platform. In the first phase, AD seeks up to $5 mm in capital. In the second phase, the company seeks up to an additional $5 mm in capital to expand its platform

  The company has 3 primary objectives for the use of new capital:

(1) Automating Technology Platform for Scalability

(2) Expanding Artist/Consumer Retail Experience

(3) Enhancing Integrated Services Model

Growth Opportunities


 AD TV – Pay-‐per view live performances, in-‐studio access, music lessons and free content with ad model

  Full scale artist development services – Marketing, PR, legal, brand development, distribution

  Diversify artist brand names – Attract new users to the UGC and increase digital sales

Music Today


Companies large and small invest around US$5 billion a year in music talent

Total Music Sector: $160 Billion

Retail: $25.8 bn

Radio Ads: $28.7 bn

Pub $9.8 bn

Audio Equip $15 bn

Source: IFPI

Music Consumer Profile (2009)


Amalgam Digital’s core market currently accounts for over 20% of total music sales

Digital Wealth Creation Amid Destruction


Eroding Value Wealth Creation New Technologies

Why Amalgam Digital?


  AD offers a full service digital distribution and artist service platform like no other competitor in the market

 AD enables a higher degree of artist/fan interaction, which creates a more powerful revenue-‐generating dynamic for the artist/company partnership

  AD is the new, technology-‐driven, lean-‐operating record label

“Amalgam Digital is the future of music.” -‐ Floyd “Money” Mayweather

Contact Information


Research 2. 0 Headquarters 1313 Washington St., #326

Boston, MA 02118

+1-‐617-‐848-‐9651

[email protected]

www.research2zero.com

Project Team

Stephen Waite

[email protected]

Mobile: +1-‐203-‐537-‐0263

Kris Tuttle

[email protected]

USA Mobile: +1-‐617-‐828-‐6462

French Cell: +33-‐(0)6-‐7439 8593

Ben Stein, Research Associate

[email protected]

Heidi Manwaring, Research Assistant

[email protected]

Leigh Deacon, Administrative Manager

[email protected]