Destiny Media Technologies Inc. · TSXV:DSY
Destiny Media Technologies — Q2 2019 Earnings Presentation
21 slides from Destiny Media Technologies's earnings presentation, Nov 1, 2019
Slide 1: Play MPE
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Slide 2: What is Play MPE?
What is Play MPE ? — Play MPE started 16 years ago as a digital alternative to mailing CD’s for music promotion. — We are widely accepted in 7 countries including in the United States, Australia, New Zealand, and Scandinavia, and partial use in many additional areas. —Play MPE is faster, affordable,
Slide 3: The Problem We Solve
The Problem We Solve — Play MPE connects record labels to a current and active audience (streaming services, radio, media publicity outlets) capable of exposing new music to a larger consumer audience. ©- i> ttt play[>mpe
Slide 4: How We Create an Active Network of Media, DJs, Radio, Stadiums
How We Create an Active Network of Media, Dj’s, Radio, Stadiums, etc... — Easy to use players and — Managed recipient lists — Worlds biggest artist mobile apps using system metrics aon Ane wielere biggest record labels. — Integrated, easy - to - — State of the art security use software features ‘e~
Slide 5: Global Recorded Music Industry
Global Recorded Music Industry Revenues 2015 - 2017 Source - IFPI 30.0 0.3 0.3 Gu Physical 25.0 0.4 EEE Digital (excluding steaming) 20.0 28 47 AB Mumm Streaming ag Sto) . 3.2 2.8 >) Performance Rights : Maggs Synchronization Revenue 10.0 5.7 5.5 5.2 5,0) 2015 2016 2017 play[>mpe
Slide 6: Music Promotions
Music Promotions Promotional Content — Music — Music Videos F Audience — Podcasts Exposure 2015 2016 2017 — Photoshoots ee “isnot — Music shows HEE Digital (excluding steaming) Hg Physical "| Performance Rights HE Synchronization Revenue play[>mpe
Slide 7: Royalties
a Royalties — Sync Revenue DUS == — Record Label exclusives Bloggers & Vbloggers — — Music Supervisors Audience (TV/Movie/Videogames) Exposure Internet Radio — — Sports Stadiums Youtube — — Radio Media / Press — Ae — Digital Streams Physical Sales — ~ Digital Sales play[>mpe
Slide 8: Play MPE Pricing Model
Play MPE Pricing Model — Fees are charged based on the number of songs (size of the package) to the number of Play MPE destinations revenue — Some agreements are fixed Package monthly fees approximating Size (songs) usage. @ Jd " Number of promotional outlets ine play[>mpe
Slide 9: Recent Results Q Revenue
Recent Results Q Revenue 5M 4M 3M — 9 quarters of — Q1 2019 (Nov 30, 2018) 2m revenue growth 5.4% increase in non- aaa Universal Music revenue 15 16 47 38 — 7 quarters of income — New genres including ° YOY Revenue Jazz, Urban, Dance and yA Growth Top 40 (Dec / ’18) —$____——_ — Universal renewal 14%
Slide 10: Revenue Breakdown
Revenue Breakdown ME Full Service MEE Self Service > Activity based Vs. MM Recurring Fees WE Major Label N = se Independent Label All Play MPE Revenue 71.5% oO @) @ & — 32.4% —> 97.9% 3% —)p 100% 59.9% D 40.1% 67.6% —pD — 0.2% 60.5% Major Label revenue
Slide 11: Geographical Targets
Geographical Targets 7 UNIVERSAL INDEPENDENT pares canes Music 29.8% 29.9% Christian, Country, © >) Alternative Target 3 [Raguepig titiiosioes 22.3% 18.1% Latin, Jazz, Urban, Top 40, Dance, Rhythmic, Hot AC, Rock USA USA 2 UK scondinavia Canada Africa Japan Other / Mainland Europe play[>mpe
Slide 12: Current Distribution - Royalties
Current Distribution _ Royalties fe) Label Lists 68.6% DJs — Bloggers & Vbloggers Internet Radio — Music Supervisors Audience (TV/Movie/Videogames) Exposure — Sports Stadiums Youtube — Media / Press Digital Streams Physical Sales — ~ Digital Sales play[>mpe
Slide 13: Short Term Targets: Expanding Play MPE
Short Term Targets: Expanding Play MPE — Build on nascent (early 2019) major — Worldwide agreement with Warner label use in new market segments Music (expanding 7 countries) (US Pop, Global Jazz) and repeat lasting growing independent label use — Building on new agreement with UMG and new integratio
Slide 14: Expanding Market Share
Expanding Market Share — Many small competitors isolated to — Broken down into 3 main discreet markets or without broad categories - Archival use by all Major Record Labels (including Play MPE), send based, DIY systems. — Play MPE most widely used play[>mpe
Slide 15: Strengths of Play MPE vs DIY & Send Based
Strengths of Play MPE vs DIY & Send Based — Provision of engagement lists (recipients) — Account based - more organized with more activity — Analytics - reports on engagement (DIY) play[>mpe — Better recipient experience (DIY) — Full service - much easier — Security cen =a i
Slide 16: Strengths of Play MPE vs Archival
Strengths of Play MPE vs Archival — Stronger / broader acceptance — Better recipient experience — Provision of engagement lists (recipients) vs. some Boars DD = ——- eal — Full service - much easier play[>mpe
Slide 17: Expanding Market
Expanding Market play[>mpe
Slide 18: Product Development - Identified Problems
Product Development - Identified Problems — Promotions are inconsistent, inefficient, and lack metrics — Revenue from end use does not sufficiently filter down to rights owners. play[>mpe — Promotion for music is internally conflicted (to promote music you need to give the product away)
Slide 19: Increasing Efficiences
Increasing Efficiences — Archival systems (music, photoshoots, press kits) — Expanding delivered content (video, photoshoots, concerts, podcasts) — Expanding promotional destinations (movie / tv / ad producers / DJs) — Radio automation play[>mpe — Recipient paid distributions (Djs and non reporting
Slide 20: Immediate Actions
Immediate Actions — Recruitment of product management and business development — New product generation and evaluation processes — Expanding client strategy sessions on regular cadence play[>mpe
Slide 21: Investing
Investing Ol — OTCOQB - DSNY — TSX-V - DSY play[>mpe
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