SEATTLE, Jan. 10, 2005 (PRIMEZONE) -- NetMusic Entertainment (Pink Sheets:NTMT) today released its plans and projections for 2005. The company moved rapidly in the fourth quarter of 2004 to lay the groundwork for a number of exciting initiatives and is optimistic that 2005 will see a continued growth for the company.
New and Enhanced Services:
Catalog acquisition and expansion: In December of 2004 the company acquired Audio Lunchbox (http://www.audiolunchbox.com), a leading digital music service (DMS) in the independent space. As 2005 gets under way, the company has a catalog of approximately 1,000,000 tracks and is in negotiations to acquire approximately 750,000 more tracks, including major label releases, by the close of first quarter 2005. Additionally, the company has begun an initiative to license content from overseas labels in Europe, Asia, and the Middle East to further broaden its catalog.
Video on Demand Services: NetMusic Entertainment has laid the groundwork for a video on demand (VOD) service to launch in the first quarter of 2005. The VOD service will include music videos, independent and cult-classic movies, original programming, and major studio releases.
Digital Jukebox Operations: In December 2004 the company reached an initial agreement with a company specializing in entertainment to gyms throughout the United States, to provide a digital jukebox service. The company aims to have digital jukeboxes in gyms throughout the United States within an 18- to 24-month timeframe.
Overseas expansion: The company has already laid the groundwork for its first overseas launch in the Philippines and expects to be open in Manila in the second quarter of 2005. Following closely on the heels of the Philippines launch will be the Middle East in Q3 2005 and Western Europe by Q4 2005. By partnering with local companies in those regions, NetMusic Entertainment is able to launch country and region-specific versions of its NetMusic (http://www.netmusic.com) DMS rapidly and cost effectively.
Revenues:
Projections: Between October 2004 and November 2004, NetMusic Entertainment saw its revenues increase by approximately 320%, while the increase from November 2004 to December 2004 was just over 30%. It is important to note that the increase between November and December occurred during a 10% across the board price reduction on the company's NetMusic (http://www.netmusic.com) and Audio Lunchbox (http://www.audiolunchbox.com) properties. The company foresees a similar continued increase in revenues throughout 2005.
Diversification: NetMusic Entertainment will be diversifying its revenues in 2005 with the implementation of its VOD and digital jukebox offerings. Additionally, overseas expansion will allow the company to enter into fresh markets and capture a larger international audience.
About NetMusic:
Edmonds, Washington-based NetMusic Entertainment (http://www.netmusic.com/) is a global digital media company focused on providing consumers entertainment on their own terms: anytime, anywhere. The company offers digital music downloads, digital jukeboxes, video-on-demand and online video rental services across the globe. NetMusic also offers the largest online collection of independent music in the world -- a licensed catalog of over one million tracks, incorporating 4000 plus labels.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although NetMusic Entertainment Corporation believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by NetMusic Entertainment Corporation or any other person that the objective and plans of NetMusic Entertainment Corporation will be achieved.