A Direct-to-Consumer Solution for the Music Recording Industry

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1 A Direct-to-Consumer Solution for the Music Recording Industry

2 2 A Decade of Declining Revenue for the Music Recording Industry $16.0 Revenue for CDs, vinyl, cassettes and digital downloads $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $ (Billions) Forrester Research

3 3 Record Labels Have A Broken Business Process Artist demands latest Internet widget to connect to fans. Label Exec rallies IT and comes up with a plan. Finance pushes back on costs, causing underinvestment in Internet plumbing. Marketing engine turned on, website performs poorly, and artist and fans are upset. Label Exec spends months rebuilding artist relationship, label loses 360 business.

4 4 Relationship Options Option A Option B Record Labels 3 rd Parties 3 rd Parties Music Fan Record Labels Music Fan

5 5 Common Website Infrastructure Challenges for Labels Marke&ng is Innova&ng Faster than IT Well Planned Promo&onal Events are Poorly Executed Demand is Unpredictable

6 6 Labels Should Shift IT Effort to Activities that Differentiate Rackspace manages your network and application infrastructure plus provides cloud computing and professional services so you can focus on the business processes and applications that differentiate your business. With Rackspace Differentiating Business Process Differentiating Applications Network and Application Infrastructure Non-Differentiating Current State

7 The Label Can Now Focus on Building Relationships with Artists, Marketing to Fans, and Developing Relevant, On-Demand Content 7 Artists Websites / Artists Brands Analytics / Mobile / E-Commerce Content Management Solution (CMS) Customer Relationship Management (CRM) Database Real-time Application and Infrastructure Monitoring and Remediation Network and Application Infrastructure

8 8 The Rackspace Media Services Solution Rackspace Strategy & Implementation Team Server Burst Architecture Web Scale Engineering Release Engineering, Change Management, & Load Testing Real-time 24x7 Proactive Monitoring & Consultation

9 9 Rackspace Media Services Provides Real Value Solu&on Features Value Rackspace Strategy & ImplementaCon Team Web Scale Engineering Real Cme 24x7 ProacCve Monitoring & ConsultaCon Release Engineering, Change Management & Load TesCng Server Burst Architecture Assessment of strategy and exiscng technology elements Customized implementacon plan based on a label s unique strategy Dedicated account team Rackspace Media Services employs only the very best LAMP engineers Pre empcve issue resolucon Run Cme opcmizacon and tuning 24x7 real Cme monitoring of the infrastructure and ArCsts sites ProacCve trend analysis and alercng Extensive analyccs and reporcng Cross browser, OS, and screen size compacbility tescng On demand, geographically diverse website load and performance tescng Dedicated, secure burst capacity for rapid IT scaling Extra capacity for high load / high demand situacons The Rackspace team provides both the industry understanding and the technological expercse to deliver a D2C strategy solucon that will enable the label to monecze their business. The label has peace of mind in knowing they have the best experts dedicated to their D2C solucon and available 24x7. The label can now focus on core business needs. Deeper insight and monitoring means your ArCsts websites stay up. The label maintains creditability with ArCsts and fans. The label can idencfy problems before going into produccon resulcng in more success for markecng promocons. The label s web services infrastructure and all of the ArCsts websites can handle unexpected spikes in traffic.

10 10 A Four-Phased Approach to Building Your D2C Solution 1. Diagnos&c Study 2. Solu&on Development 3. Implementa&on 4. Op&miza&on and Maintenance

11 11 About Rackspace Founded ver 10 Years of Hosting Expertise Headquartered In San Antonio, Texas Ten Worldwide Data Centers to Serve Global Needs Recognized as One of the World s Leading Service Companies 2,770+ Employees (aka Rackers ) 90,000+ Customers and Growing Listed NYSE 2008 (RAX) Gartner Magic Quadrant

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