Sales

/ Revenue Assumptions Format Mix Revenue

Base Sales Scenarios 1 -40% 15% Physical 30%
Gross Physical Units 125,000 75,000 143,750 Digital 54%
Physical Units 30% 30% 30% 1) Downloads 38.00%
Return Rate 20% 20% 20% A) Albums 11.26%
Digital (Streaming+Album & Track Downloads) 54% 54% 54% B) TEA 18.6%
Streaming (% of Digital) 70% 70% 70% 2) Streaming 27.57%
Permanent Downloads (% of Digital) 30% 30% 30% Performance 14%
Digital Albums/ Permanent Downloads 48.9% 49% 49% Synch 2%
Digital Singles/Permanent Downloads 51.1% 51% 51%
Performance 14% 14% 14%
Synch 2% 2% 2% Revenue (From Marginal Cost Worksheet)

Physical $ 6.63

Gross Revenue & Unit Sales Worksheet - Forecast Baseline Worst Case Best Case Digital Albums $ 6.00

Gross Physical Units 125,000 75,000 143,750 Digital Singles $ 0.60

Gross Revenue from Physical $ 829,219 $ 497,531 $ 953,602

Total Gross Revenue (Physical / 39%) $ 2,764,063 $ 1,658,438 $ 3,178,672 Check

Returns 25,000 15,000 28,750 Physical 29%

Net Physical Units 100,000 60,000 115,000 Digital 56%

Gross Revenue from Digital Albums $ 311,213 $ 186,728 $ 357,895 Downloads 28.87%

Digital Albums (Units) 51,869 31,121 59,649 Streaming 26.66%

Gross Revenue from Digital Singles $ 514,005 $ 308,403 $ 591,106 Performance 14%
Downloaded Singles 856,675 514,005 985,176 Synch 2%

TEA 85,668 51,401 98,518

Streaming Revenue $ 762,166 $ 457,299 $ 876,490

Performance Revenue $ 386,969 $ 232,181 $ 445,014

Synch Revenue $ 55,281 $ 33,169 $ 63,573

Total Net Units (No SEA) 237,536 142,522 273,167

Total Gross Revenue $ 2,858,852 $ 1,715,311 $ 3,287,680