Friday, January 9 3:00 PM - 4:00 PM Session B: DH16: Music Industry Innovates into Future - From Digital Downloads and Subscriptions to Digital and Internet Radio This is the year of the rollout of new music services as well as the arrival of broadband, mobile and wireless. Music is available to the consumer, all over, all the time. Digital radio and Internet radio are emerging. Technology and music seem to have taken that relationship to the next level and the consumer seems to understand and embrace it. In this session, rather than looking at the file-sharing past, we will look to the new technology future. After the lawsuits, after the consolidation, after the first attempts at music subscription, we will in this session, try to evaluate what the new music industry is going to look like. The era of digital music delivery is here, but the details of how the industry will be structured are still confusing. What will digital radio mean? What about all those music channels on satellite and cable? What are the different ways that the consumer will access music in the future? And will they be willing to pay for it at acceptable levels to sustain the industry? Ken Hertz, Senior Partner, Goldring Hertz & Lichtenstein LLP Scott Kauffman, CEO, FullAudio Corp / MusicNow Peter Csathy, President, Musicmatch Ellie Hirschhorn, General Manager and EVP, MusicNet Sean Ryan, Vice President, Music Services, RealOne Music Division, RealNetworks David Ring, Vice President, Business Development & Business Affairs, Universal Music Group, eLABS Ted Cohen, Senior Vice President, D3 - Digital Development & Distribution, EMI Recorded Music, Moderator Kenneth Hertz, Senior Partner, Goldring, Hertz & Lichtenstein: Hertz, managing partner in the Beverly Hills law firm of Goldring, Hertz and Lichtenstein LLP, specializes in representing talent in the entertainment industries. The firm’s clients include Will Smith, Destiny’s Child, Beyonce Knowles, Christina Aguilera, No Doubt, Hillary Duff and Alanis Morissette. Prior to joining the firm, Hertz was vice president, music -- business and legal affairs -- for The Walt Disney Company. Hertz is also a principal in Membrain, an entertainment marketing strategy consulting firm that consults a number of firms engaged in businesses operating in the entertainment content, technology and marketing industries (including Hasbro, Alliance Entertainment, BMG and The Estate of Elvis Presley, Def Jam and Paul Frank Industries). Hertz is a frequent speaker on the subjects of entertainment, convergence and technology, and has been an instructor at UCLA’s Anderson Graduate School of Management. Hertz is also active in various causes and in December 2002 he, and his partner Fred Goldring, received the ACLU’s Bill of Rights Award for their extraordinary commitment to social justice. Scott Kauffman, President & CEO, Director, FullAudio: As President and CEO of FullAudio, Scott Kauffman is leading the charge to establish the FullAudio digital subscription service as the easiest way to enjoy great music. Scott brings to FullAudio an extensive background in executive management with digital entertainment, consumer marketing and technology companies including CompuServe and Time Warner. Most recently, Scott was chairman and CEO of Coremetrics, the leading web services provider of marketing analytics solutions. Before joining Coremetrics, Scott was president and CEO of eCoverage, a direct-to-consumer online insurance company. Prior to eCoverage, Scott was recruited by Kleiner Perkins to become president and CEO of AdKnowledge, a company focused on developing management solutions for Internet advertising. He grew the company to over 80 employees and more than 100 customers, filing an S-1 for an initial public offering before negotiating the sale of the company to CMGI in the fall of 1999. Prior to AdKnowledge, Scott was vice president of online services at CompuServe, where he participated in one of the Internet industry’s first initial public offerings, led by Goldman Sachs. At CompuServe, Scott assumed responsibility for operations of all of the company's online brands, including CompuServe’s pioneering CIS service and SpryNet, CompuServe’s ISP service. Before his association with CompuServe, Scott spent seven years at Time Warner, including five years as a member of the founding team of Entertainment Weekly magazine. Most recently, he was vice president of business development for Time Warner Interactive. Scott is a recognized industry leader and was honored by Advertising Age in 1996 as one of twenty Digital Media Masters. In July of 1992, Advertising Age named him one of the top 100 marketers in the country. Ellie Hirschhorn, General Manager and Executive Vice President, MusicNet: As General Manager and EVP of MusicNet, Ellie Hirschhorn is responsible for overseeing distribution and business development, and supervising content acquisitions and programming, public relations, and marketing. She also supervises product management, with responsibilities including research and developing and analyzing new consumer features and functionality. In addition, Ms. Hirschhorn maintains close relationships with current and potential distributors and label partners, and is developing a cohesive consumer offering with distribution partners. Prior to joining MusicNet, Ms. Hirschhorn held various posts at Viacom. Her most recent was as General Manager and SVP of MTV.com where she was responsible for the day-to-day leadership, strategy and management of MTV.com. She had ultimate responsibility for programming, production, marketing, business development and planning. Prior to MTVi, she was SVP, Business Development for MTV Networks and was responsible for identifying, evaluating and executing new business development opportunities including cable network acquisitions, new lines of business and ancillary revenue opportunities. During her tenure, she led the business development efforts for the launch of the Suite, five new music channels from MTV and VH1 for multichannel distribution. Ms. Hirschhorn was also Vice President of Corporate Development at Viacom, Inc. and worked at Showtime Networks. Before Viacom, she worked at Time, Inc. and various media companies. Ms. Hirschhorn began her career on Wall Street in investment banking and private equity. She holds an MBA from Harvard Business School and a BA in History from Yale University. She currently serves as a member of the board of Directors and Trust Committee of Fiduciary Trust Company International. Sean Ryan, Vice President, Music Services, RealOne Music Division, RealNetworks: Sean Ryan guides the growth and overall direction of RealNetworks' RealOne Music division, which is responsible for developing and enhancing the company's offering of digital music products and services. Sean joined RealNetworks in 2003 following the acquisition of Listen.com, the online music company that created RHAPSODY music subscription service. During his tenure as Listen.com's CEO, Sean oversaw the company's growth into a leader in the digital music space, from the launch of RHAPSODY and subsequent distribution agreements with the country's largest broadband providers to strategic acquisition of music technology companies TuneTo.com and Wired Planet. Prior to joining Listen, Sean worked for SegaSoft Networks, the GAP, and Chemical Bank. Sean holds a BA from Columbia University and an MBA from UCLA's Anderson Graduate School of Management. David Ring serves as Vice President, Business Development & Business Affairs, Universal Music Group, eLabs, where he is the head of Business & Legal Affairs for the division and an executive in the Business Development group. Universal eLabs, formerly known as the global e-Commerce & Advanced Technology (e-CAT) division of UMG, is responsible for overseeing the company’s electronic commerce initiatives, Internet exploitation, and new technology business opportunities worldwide. Universal eLabs’ business development and business affairs’ staff supports all of UMG’s e-business initiatives, including digital download, subscription, webcasting, interactive radio and pay-per-play through all digital channels of purchase such as kiosks, computers, TV set top boxes, and portable devices. eLabs works closely with and supports all UMG’s record labels and other businesses to enhance opportunities for music driven by new technologies, while protecting the value of recorded music. Previously, Mr. Ring served as head of Business & Legal Affairs for UMG’s global e-CAT division. Prior to that he was Director of Business and Legal Affairs for UMG, responsible for negotiating and drafting agreements in the areas of recording, labels, soundtracks, distribution and interactive media and new technologies. Before joining UMG in March of 1996, Mr. Ring was in private practice representing recording artists, labels, songwriters, and producers, as well as film and television writers. Prior to that, he served as an associate at the Los Angeles law firms of Phillips, Nizer, Benjamin, Krim & Riley and Rosenberg, Nagler & Phillips, where he handled intellectual property and business litigation with an emphasis on music and other entertainment-related issues. Mr. Ring holds a J.D. from the UCLA School of Law and a B.A. in Political Science, Magna Cum Laude, from the University of California, Berkeley. Universal Music Group is the world's leading music company with wholly-owned record operations or licensees in 63 countries around the world. Its businesses also include Universal Music Publishing Group, one of the industry's largest global music publishing operations. Peter Csathy joined MUSICMATCH in March 2002 as president and COO. He is responsible for extending the company's music and entertainment strategy, managing strategic partnerships, and overseeing legal, sales, finance and business development activities. MUSICMATCH is the leader in personalized music software and services, and Csathy's appointment represents MUSICMATCH's ongoing commitment to extend the company's media strategy. Csathy is an entertainment and media industry veteran with entertainment roots that include executive positions with online and offline companies in both established and start-up environments. Most recently, Csathy served as COO of eNow, Inc., a global media and technology company delivering breaking news and information. Prior to eNow, Csathy was senior vice president of Universal Studios Recreation Group, driving all major international and domestic new business opportunities, strategic initiatives, acquisitions and joint ventures, and prior to Universal Studios was vice president of Savoy Pictures Entertainment. Csathy received his M.A., J.D. from Harvard Law School, and his B.A., summa cum laude, in Political Science from the University of Minnesota. Ted Cohen, Vice President, Digital Development & Distribution, EMI Recorded Music: As Vice President of Digital Development & Distribution for EMI Recorded Music, Ted Cohen oversees worldwide digital business development for this "big five" record company, which includes labels such as Capitol, Virgin, Angel/Blue Note, Parlophone and Chrysalis. Under Cohen’s guidance, EMI has led the industry with its initiatives in new technologies and business models such as digital downloads, online music subscriptions, custom compilations, wireless services, high-definition audio and Internet radio. In addition to seeking out, evaluating and executing business opportunities for the company, Cohen serves as both a strategist and key decision-maker for EMI’s global new media and anti-piracy efforts. He has worked to establish company-wide policies, which have allowed EMI’s artists and labels a substantial advantage in the digital music arena. Cohen served previously as the Executive Vice President of Digital Music Network Inc., where he co-founded and served as Chairman of the Webnoize ’98 & ’99 conferences. He currently chairs MidemNet, an international music/technology conference convened in Cannes each year. Cohen also held senior management positions at both Warner Bros. Records and Philips Media. Additionally, Cohen lead two highly successful new media consulting operations, DMN Consulting and Consulting Adults, attracting clients such as Amazon.com, Microsoft, Universal Studios New Media, DreamWorks Records, Liquid Audio, Wherehouse Records/Checkout.com and several other entertainment, computer and new media organizations. A 25-year industry veteran, Cohen serves on the NARAS (Grammy) Los Angeles chapter Board of Governors, the Board of Directors for the Neil Bogart Memorial Fund, Co-chairs the new media arm of the T.J. Martell Foundation, and lends his time and talents to the Grammy In The Schools Program.