SEATTLE, Jan. 18, 2005 (PRIMEZONE) -- Over the past few weeks, NetMusic Entertainment Corporation (Pink Sheets: NTMT) has received numerous requests from investors and media outlets for more in-depth explanations of NetMusic's divisions.
To help our investors and other interested parties to better understand our company, NetMusic will issue several press releases over the next few weeks explaining each of NetMusic's departments in more depth. The first of these will focus on Ultimate Jukebox. The Ultimate Jukebox division (UJB) is concerned with the manufacture, deployment and management of digital Jukeboxes.
Compared to our competitors UJB is a quantum leap in the coin-op jukebox industry. UJB is pushing the boundaries of what digital music jukeboxes can do. Unlike our competitors our system allows us to manage large numbers of machines over a limitless geographic area while reducing cost significantly. "What we have done" (says George Matarazzo founder and designer of the UJB system) "is to change the entire paradigms of jukebox management and to open revenue streams never before possible with the traditional jukebox business model". The first big difference is the money, instead of sending someone on a "route" to collect money each week; UJB gives the keys for the jukebox to the establishment manager. UJB collects its share of the money electronically thru credit card or automatic debit. This negates the need for regular visits to the jukeboxes thus lowering operating costs. Secondly since UJB will own and operates all the jukeboxes on its network. We will have created a network of powerful, multimedia presentation devices. With our system patrons will be able to do much more than just play music.
Some of the ancillary revenue streams we plan on deploying are:
1. Targeted Advertising by liquor manufacturers and distributors.
2. The ability to allow the user to purchase CDs or digital copies of any song or album on the system directly from the jukebox.
3. Sale of demographic data to Record Labels, and promotion of New Artists thru UJB's network of Ultimate Jukeboxes and Displays.
4. Promoting artists signed to NetMusic Entertainment
These and several other initiatives we are working on should exponentially increase the jukebox's revenue potential. Coin-op jukeboxes are a 5 billion dollar a year industry, with over 300k machines operating in the US. The industry say an average jukebox collects $300 per week; when considering the company's goal of 5,000 machines placed in 2005 the numbers start to add up. The company feels confident that its jukeboxes will generate at least 2x the average. This consistent cash flow will be able to support the companies other needs and most likely bring the company to profitable status by the close of 2005.
Ultimate Jukebox is the back bone of a new form music distribution able to sell and deliver all types of media to and from the customer at significantly lower costs of operation. The ultimate jukebox will also be integrated into a kiosk platform for introduction into other areas such as schools, malls, and airports. This should give UJB a global reach in the areas of media distribution and sale.
We thank our stock holders for their input and hope to hear more.
Comments or questions can be sent to mailto:corp@netmusic.com
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.