18-24

Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis

CCA dMBA : Market Insights Studio

26 FEB 2010

MUSIC INDUSTRY STATS
Overall music sales: albums, singles, music videos, digital tracks, in 2009 was 1.545 Million.
Digital tracks sold for 2009 were 1.159 Million (up 8% from 2008).
Album sales were down 8.5% from 2008 - 2009.
TARGET
SEGMENT
99% of 18-24 Year Olds On Social Media, But Only 22% Use Twitter.
38 % have an iPhone or iPod Touch.
18-24 year-olds make up 19% of the adult online population, and based upon their website preferences,
are much more interested in creating and sharing content than the average online user.

More than half (50.5 percent) of 18-24-year-olds communicate with others about a service, product or brand via cell
In 2008, 20-24 year-olds were 10.1% of the market (largest market segment was 45+, at 33.7%).
phone.

Digital music accounts for 40% of all music purchases in 2009; up from 32% in 2008. TV is still an overwhelmingly dominant form of media at 3 hours and 20 minutes. That is greater than PC +
Console Gaming + Internet + DVR + DVD.

As for music, 84% spend less than £10 (EUR 12) per week on music. 76% spend only £10 (EUR12) a
week on music. More than two-thirds spend that same amount per week on their mobile phone bill.
EMI STATS
These younger consumers are also difficult to reach due to an inherent scepticism against tradi-
tional advertising and corporate interests.
Private company, owned by private equity firm Terra Firma.
Generation Y is more radically and culturally tolerant than previous generations. The majority of
Headquarters in London, UK.
Generation Y is culturally liberal.
Catalog of over 1 million songs.

Revenue has declined over past 5 years.

Pre-tax loss of $2.7 Billion in the year to 3/31/2009.

Smallest of major labels, 9.2% market share worldwide.

18-24
SECONDARY RESEARCH
CCA dMBA : Market Insights Studio
26 FEB 2010 Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis
 ON-LINE MUSIC (RE)SOURCES ANALOG MUSIC (RE)SOURCES

An endless array of platforms on-line to find out new music:.

Magazine and industry owned/supported sites,; internet radio platforms such as Pandora; community sharing such
as last.fm and of course millions of personal blogs of dedicated music aficionados.

This sampling shows some of the main ones that just begin to scratch the surface.

“The fans have spoken”—avenues for fans to feel as if they have a voice/influence when
choosing/supporting their favorite artist.

Interesting promotion in Filter: Discover the Undiscovered. There’s a reoccurring theme of discov-
ery throughout.

Exclusivity equals value. “Unreleased, rare, b-side, never-before-seen-footage, backstage pass.”

18-24
SECONDARY RESEARCH
CCA dMBA : Market Insights Studio
26 FEB 2010 Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis
 Client: Methodology :
EMI Music Will conducted (40) individual interviews.
http://www.emimusic.com/
Employer Name – unknown
Length of each: TBD
Team:
Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis Locations:
Shopping Centers, Movie Theaters, Arcades, Small Independent Record Stores

Date of Report: TBD

Secondary research:
Data mining via internet
Topic Areas : A music band consisting of 18-24 year olds

The Music Experience for male and female 18-24 year olds:
Caucasian, Asian, Hispanic, African-American, and Other Qualitative research:
Street intercepts
What is the value/experience music gives to 18-24 year olds? Experiential image depictions

What kind of musical experience are 18-24 year olds willing to pay for? Quantitative research:
Online discussion forums
What are the priorities of 18-24 year olds when it comes to their music experience? High-fidelity forums (non-digital)
Magazines, Flyers
How do 18-24 year olds experience music?

What does music mean to EMI? EMI delivering the experience. Findings:
TBD
Executive Summary Findings: TBD
Conclusions/Recommendations :
TBD
Background :
The revenue for has declined over the last 5 years.
Last year, EMI lost over 2 billion dollars in revenue. Appendix :
Research shows that the music industry is experiencing huge shifts in the way it uses music products. TBD
There is a huge potential in the 18-24 year old market that EMI can capitalize with new experiential strategies.

Objectives :
We want to discover a way for EMI to better position itself to serve the existing 18-24 year old customer, to
increase EMI’s market share for this age group, and to create and/or revamp products aimed at this age group.
To deliver a comprehensive understanding of what is important to the 18-24 year old customer now and in the
future and to design solutions around that understanding.

18-24
QUALITATIVE RESEARCH PLAN
CCA dMBA : Market Insights Studio
26 FEB 2010 Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis
 EMI RESEARCH OBJECTIVES + TECHNIQUES INTRODUCTION SCRIPT

What do we know before the interviews?
This group shall contain an equal ratio of men and women 18-24 with varying
ethnicities. This market segment of 18-24 year olds is small but has huge potential
for developing an experiential strategy being an influential generation of our times.
What do we want to know after the interviews?
What is the value music gives to people?
What are consumers' priorities when it comes to their music experience?
What kind of musical experience are people willing to pay for?
What impact does generational taste have on music entertainment industry?
“Hey howzit going? We’re graduate students at a design college in San Francisco and are
working on a class project centered on music. Would you be willing to answer a few
questions for us—it should only take 5-10 minutes?”
If no, or not interested response “Thanks for your time.”
If yes, or if responsive, continue.
“So, thank you for your time. As we mentioned, we’re students working on a class project
and we’re interested in learning about the different experience people have when listen-
ing to music. Before we get started, would you mind if we video taped this interview?
Your info will be used for internal purposes only and it will never be made public.

Research Technique Cool, let’s get started….

Street Intercepts

Structure:
Teams of 2

Location:
We will be conducting interviews in front of various record stores, outdoor shopping
malls, theaters and gaming studios. We’ve chosen these locations because they
contain a high density of our target audience of 18-24 year-olds.

Tools:
Each team shall have (2) decks of laminated cards that contain 10 images. Each
image represents a specific experience, real or abstract.

Day+Time:
12:00 noon – 4:00 PM and/or 6:00 PM - 9:00 PM on a Saturday or Sunday.

18-24
RESEARCH OBJECTIVES + TECHNIQUES
CCA dMBA : Market Insights Studio
26 FEB 2010 Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis
 INTERVIEW QUESTIONS

1. Take a look at the following images. Which image most closely represents how 7. Have you ever had a bad experience with music?
you experience music today? Describe that experience.
What would have made it better?
2. Now, look through the same images. Which image most closely represents how
you will experience music in 10 years? 8. If you had $50 to spend on a new music experience, how would you spend it?
Why?
3. Think back to your first memorable music experience. What was it?
What were you experiencing? 9. What’s the most you’ve ever spent on a music experience?
Why was it memorable?
Could this experience be recreated? 10. As you grow older, do you expect to pay more to experience music?
If yes, how? Why?
If not, why not? Why not?

4. Think back to the last time you heard a song or artist that made you stop and ask, 11. Is it possible to love music?
“who is that?” What were you experiencing at that moment of inquiry? (If yes) Do you love music?
Where were you? (If not) Why not?
Did you end up sharing that particular song or artist?
If so, whom did you share it with?
Why did you share it

5. In your opinion, what is the ultimate music experience?

What makes this the ultimate experience?

6. What’s the strangest thing you’ve ever done to experience the music you want to
hear?

18-24
RESEARCH OBJECTIVES + TECHNIQUES
CCA dMBA : Market Insights Studio
26 FEB 2010 Mike Funk + Amina Horozic + Nikki-Nicole Miles + Neil Straghalis