1. 5 Things the Music Business Can Learn FromPresented by:Kristina Wallender, Ticketfly December 2013@kwallender AMAZON SERVICES CONFIDENTIAL

2. Amazon HQ: Seattle, WAAMAZON SERVICES CONFIDENTIAL2 3. Working at AmazonAMAZON SERVICES CONFIDENTIAL3 4. So what can we learn from Amazon?AMAZON SERVICES CONFIDENTIAL4 5. Lessons from Amazon 1. Obsess over customers 2. Create a loyalty program 3. Invest for the long term 4. Never stop experimenting 5. Use technology to your advantageAMAZON SERVICES CONFIDENTIAL5 6. Lesson #1:Obsess over customersAMAZON SERVICES CONFIDENTIAL6 7. 1 The empty chair #1AMAZON SERVICES CONFIDENTIAL7 8. 1 Personalize the experience #1AMAZON SERVICES CONFIDENTIAL8 9. 1 Personalize the experienceAMAZON SERVICES CONFIDENTIAL9 10. 1 Invite customer reviews #1We dont make money when we sell things. We make money when we help customers make purchase decisions. Jeff Bezos10 AMAZON SERVICES CONFIDENTIAL 11. 1 Invite customer reviews #1AMAZON SERVICES CONFIDENTIAL11 12. 1 Invite customer reviews #1 And listenUntil you listen, you cant make real change Nic AdlerAMAZON SERVICES CONFIDENTIAL12 13. 1 Offer incredible value #1AMAZON SERVICES CONFIDENTIAL13 14. 1Offer incredible valueAMAZON SERVICES CONFIDENTIAL14 15. 1 Deliver on promisesAMAZON SERVICES CONFIDENTIAL15 16. 1 Deliver on promisesACL EXAMPLEAMAZON SERVICES CONFIDENTIAL16 17. 1 Use data to make decisions #1AMAZON SERVICES CONFIDENTIAL17 18. 1 Use data to make decisions #1AMAZON SERVICES CONFIDENTIAL18 19. 1 Use data to make decisions #1AMAZON SERVICES CONFIDENTIAL19 20. 1 Use data to make decisions #1AMAZON SERVICES CONFIDENTIAL20 21. Lesson #2:Create a loyalty programAMAZON SERVICES CONFIDENTIAL21 22. 2 Cultivate Loyalty #2 A loyalty program, not a shipping programAMAZON SERVICES CONFIDENTIAL22 23. 2 Cultivate loyaltyAMAZON SERVICES CONFIDENTIAL23 24. 2 Encourage Super Consumers #2AMAZON SERVICES CONFIDENTIAL24 25. 2 Encourage Super Consumers What is the most lucrative song ever written?AMAZON SERVICES CONFIDENTIAL25 26. 2 Encourage Super Consumers Ticketfly FanbaseAMAZON SERVICES CONFIDENTIAL26 27. 2 Encourage Super Consumers Ticketfly FanbaseAMAZON SERVICES CONFIDENTIAL27 28. Lesson #3:Invest for the long termAMAZON SERVICES CONFIDENTIAL28 29. 3 #3Do the long term mathWhen you do the short term math on Prime, it always tells you not to do it. Jeff BezosAMAZON SERVICES CONFIDENTIAL29 30. 3 Do the long term mathAMAZON SERVICES CONFIDENTIAL30 31. 3 Do the long term math No refunds?AMAZON SERVICES CONFIDENTIAL31 32. 3 Invest for the futureFuture orientation is our sustainable competitive advantage Jeff BezosAMAZON SERVICES CONFIDENTIAL32 33. 3 Invest for the futureAMAZON SERVICES CONFIDENTIAL33 34. 3 Base your strategy on what doesnt change I very frequently get the question: whats going to change in the next 10 years? I almost never get the question: whats NOT going to change in the next 10 years? That is the far more important question Jeff BezosAMAZON SERVICES CONFIDENTIAL34 35. 3 Amazons strategy Advertisers Lower Cost StructureSelectionSellersGrowthLower PricesCustomer ExperienceTraffic AMAZON SERVICES CONFIDENTIAL35 36. Lesson #4:Never stop experimentingAMAZON SERVICES CONFIDENTIAL36 37. 4 Experiments in progress #4AMAZON SERVICES CONFIDENTIAL37 38. 4 Experiments in progressAMAZON SERVICES CONFIDENTIAL38 39. 4 Learn from your mistakes #4 If you want to be inventive, you have to be willing to fail. Jeff BezosAMAZON SERVICES CONFIDENTIAL39 40. 4 Learn from your mistakesAMAZON SERVICES CONFIDENTIAL40 41. 4 Test and measure #4ABAMAZON SERVICES CONFIDENTIAL41 42. 4 Test and measureAMAZON SERVICES CONFIDENTIAL42 43. Lesson #5:Use technology to your advantageAMAZON SERVICES CONFIDENTIAL43 44. 5 Automate tasks #5 Dont let humans do things technology can do better Jeff Wilke, Head of RetailAMAZON SERVICES CONFIDENTIAL44 45. 5 Automate tasksAMAZON SERVICES CONFIDENTIAL45 46. 5 Hire technology platforms & robots #5AMAZON SERVICES CONFIDENTIAL46 47. 5 Hire technology platforms & robots #5AMAZON SERVICES CONFIDENTIAL47 48. Lessons from Amazon 1. Obsess over customers 2. Create a loyalty program 3. Invest for the long term 4. Never stop experimenting 5. Use technology to your advantageAMAZON SERVICES CONFIDENTIAL48 49. Questions for the audience A. How else might Amazons lessons be applied to the music industry? Who is doing it well? 1. Obsess over customers 2. Create a loyalty program 3. Invest for the long term 4. Never stop experimenting 5. Use technology to your advantageB. Are there any other lessons we can learn from Amazon? AMAZON SERVICES CONFIDENTIAL49 50. Thank you!@kwallender @ticketfly AMAZON SERVICES CONFIDENTIAL50