1.
Earbits Radio
Company Overview
October 2013

2.
12 Million Bands, Record Labels
and Concert Promoters
spend $3.8B annually on marketing
Billboards. Magazines. Facebook ads.
Text and images don’t sell music.
The radio does.
1

3.
Ads and commercials suck on
streaming music services
They produce so little value that
Pandora lost $38M in 2013

4.
Earbits Radio is
Google Adwords for Music
Top bands bid for radio airtime to
market their content and acquire fans

5.
Over 400
expert-curated
channels
Available worldwide
on the web and
mobile with no
commercials or
ads
Perfect if you
love new music,
hate commercials,
or live outside
the US

6.
This model monetizes 9x better
than Pandora with no commercials
It produces 21x more value
for content owners
It generates 94% gross margins
2
3
4

7.
You’re probably thinking…
You won’t solve the chicken and egg
You can’t get great content royalty-free
Bands don’t have any money
You need the major labels to scale
Investors won’t touch this
It’s too difficult to grow consumer traffic

8.
“You’ll never solve the chicken and egg.”
In 2010, we convinced 600 bands
and 40 record labels to
send physical CDs to our house.
We now feature over 12,000 artists
and 650 record labels.
500 more bands join every month.

9.
“You’ll never get great content royalty-free.”

10.
“Bands don’t have any money.”
12.8% of Earbits bands buy airtime
They spend $129 on average
1 out of 3 packages is over $150
Total Sales: $90,000

11.
“You need the major labels to scale.”
ATO Records
Relapse
Bright Antenna
Rhymesayers
Epitaph
Nuclear Blast
Interscope Records
The majors are starting to play ball.
The following subsidiaries have joined Earbits
under our standard royalty-free agreement.

12.
AirBNB, Dropbox, Heroku Twitter, Yammer, Dropbox SV Angel, Yuri Milner
“Investors won’t touch this.”
Y Combinator Charles River
Ventures Start Fund
CEO, Lala (acq. Apple) Founder, WordPress President, Ziff Davis
Geoff Ralston Matt Mullenweg Bill Lohse
$1.6 Million

13.
Over 2 million visitors have streamed
32 million tracks, with no marketing spend.
We have 245,000 registered users.
Some of Our Distribution Partners
“It’s too difficult to grow consumer traffic.”
5

14.
Now that we have validated that we can:
 Acquire top artists royalty-free at $1 CPA
 Convert 12.8% into high LTV clients
 Secure world class investors
 Form traffic-driving partnerships
We are shifting our focus to:
 Engage, retain and grow listeners

15.
Since June, we have:
• Improved site stability
and load speed
• A/B Tested New
Homepages
• Improved user
ingestion funnel
• Tested new music
algorithms
Result: 39% increase in
Songs Completed per
Unique Visitor
Songs Started in October
were over 1.74 million, our
largest to date.
Optimizing Engagement
23.1
23.7
24.1
27.9
29.7
16.0
16.5
16.9
20.0
22.1
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
30.0
32.0
June July August September October
Tracks Started and Completed Per
Unique Visitor
Tracks Started Per Unique Visitor Tracks Completed Per Unique Visitor

16.
We’ve got great content, an
incredible business model
and beautiful products on
our top 3 platforms.
We need to execute on our
clear plan to increase
engagement and retention.
We need capital to hire more
engineers and to keep
acquiring content.
What we need.

17.
Director of Marketing and
Operations for Experian
Grew Affiliate Network from
$19M to $48M in Two Years
Managed $60M P&L
Front man and Band Manager
Magna Cum Laude
graduate of Berklee
College of Music
Founder, Personal Note
Music Production
Composer, Drummer,
Band Leader
#1 Most Followed Developer
in Brisbane on Github, #5 in
Australia
Founder,
BackboneTutorials.com
(Over 10k e-Book Downloads)
University of Queensland
Leadership Team
Joey Flores
CEO
Yotam
Rosenbaum
EVP Music
Thomas Davis
VP of Technology
See Appendix for Full Team and Advisory Board

18.
“Who do I make the check out to?”
Raising $250,000 for total $1.8M Seed
Use of Funds
Hire one mobile engineer
Aggressive content acquisition
Runway through summer 2014
Achieve a viral co-efficient of 1+

19.
APPENDIX
Endnotes
Data
Press

20.
Endnotes
1. Advertising data for the music industry is hard to come by. We did a top-down estimate that
8% of the $48B recorded and live music industries is spent annually on advertising for those
products.
2. Pandora earns approximately $0.05 per listening hour from ads and commercials. Earbits is
already averaging nearly $0.03 per sponsored song played and we can play up to 15 songs
($0.45 per hour). While it is safe to assume we will not play 100% sponsored content, it is
equally safe to assume that per stream revenue will increase as we open the auction-based
platform, optimize the results for artists, and make high value targeting options, such as geo-
location available.
3. We have had artists report that they generated as much as $1.60 in digital music revenue per
fan generated on Earbits. We currently generate an average of 19 fans per 1,000 streams,
for immediate revenue potential of $30. Pandora pays artists $1.30 in royalties for 1,000
streams, putting the value of Earbits at nearly 23 times as much. Additionally, artists can
continue to monetize these fan connections over time.
4. We currently average 94% gross margins. We generate festival quality artist leads for $0.20
each. 20% end up with music on Earbits, for a CPA of $1. 12.8% buy airtime for a cost per
sale of about $8. They buy $129 in airtime on average for a margin of $121, or 93.8%.
5. We have acquired millions of visitors through trade agreements with major partners. We
placed an “Available on Roku” button on our footer for 3 months, in exchange for 7 million
impressions in Roku’s app center. We signed up over 300 of our artists to redeem a free $25
Twitter advertising credit. We earned $25 in free Twitter advertising for each conversion,
totaling over $600 in free advertising. We convinced the Chrome store to feature us 5 times.

21.
Earbits Team
Rahul Kumar
PT Back End Engineer
Ujjawal Asthana
PT Back End Engineer
Nic Lembck
UX/UI Design
and Development
Randy Goss
Business
Development
Manager
Sam Allman
Artist Marketing
Scott Feldman
Rock and Pop
Manager
Roshmond
Patten
Hip Hop and
R&B Manager
Jiho Choi
Electronic Manager
Adam Hall
Country Manager
Charles Rojas
Hard Rock and
Metal Manager
Shayon Daniels
Soft Rock Manager
Will Hagle
Lead Blogger
Advisors
Avichal Garg
PM at Google, Ads
Quality and Search
Ranking Algorithms;
CTO of PrepMe (acq.)
and CEO of Spool
(acq. Facebook)
Dina Hellerstein
VP of Legal and Business
Affairs for EMI Music;
Assoc. General Counsel
at Yahoo! Music
Bruce Flohr
Partner RedLight
Management;
Co-founder ATO Records;
signed Foo Fighters to
RCA Records
Anthony Saleh
Nas’ Manager;
Billboard’s 30
under 30
Sean Knapp
Lead Developer
Google Adwords; CTO at
Ooyala
Jordon Keltz
Founder ClassesUSA
(acq. Experian);
founder/CEO of
SeniorsForLiving (acq.)
Alex Hartzler
EVP Strategy at
Webclients
(acq. ValueClick)

22.
More Multi-Billion Dollar Markets
Retail
Currently we partner with 3rd party distributors for
digital music and merchandise sales.
They send us their artists because they benefit
from the artists getting exposure.
In the future, we will sell music downloads and
distribute other music products directly.
Data Services
We can tell you who is listening, where, how, and
what else they like.
Earbits can A/B test songs before they are put on
albums or heavily marketed.
We can act as a minor league farm, routing high
performing artists to managers, labels and
promoters for commission.
Licensing for film, television and commercials is a
$4B global industry.
We are the only company with 1000’s of pre-
screened content owners and consumer data about
the music.
Film and television supervisors can browse based
on consumer data. Making the next teen vampire
movie? Pick songs from our catalog that are liked
by fans of Twilight.
Live Events $23B
The hardest problem in the live event industry is
marketing.
Earbits can partner with event promoters or operate
its own events and use unsold, remnant airtime to
promote the events.
We can even plan events around this unsold
airtime, planning last minute events based on
significant available airtime in specific regions and
genres.
Sync Licensing $4.8B

23.
Press
Coverage
Inc.com: October 15, 2013 - Link
• 5 Music Startups to Watch – Earbits is
“Bitcoin for Music”
TechCrunch: March 9, 2011 - Link
• YC-Funded Earbits Brings A Twist To Music
Startups
TheNextWeb: May 20, 2011 - Link
• “The unique control that Earbits gives artists
over what gets advertised while their song is
playing should have wide appeal.”
San Francisco Chronicle: July 20, 2011 - Link
• Local music gets the spotlight on new
SFGate Radio
MusicThinkTank: July, 2012 - Link
• Daniel Whittington achieves 153% ROI
combining Earbits airtime with Bandcamp
digital downloads