Stingray Digital Supports the CRTC's Request for Information on Online Broadcasting Services

MONTREAL, QUEBEC--(Marketwire - May 25, 2011) - Stingray Digital, a Montreal-based provider of music services to multi-channel operators, is pleased that the CRTC has called for information and data gathering in Notice of Consultation CRTC 2011-344 on the impact and prevalence of online broadcasting services in Canada.

"As a leading music broadcasting service provider, with services available through traditional and online broadcasting and currently distributed in over 40 countries worldwide, we accept to operate in a regulated broadcast environment in Canada," says Eric Boyko, President and CEO of Stingray Digital. "We support the Commission's initiative and we believe that conducting this comprehensive information gathering exercise is a very important first step to review and determine the impact of Online Broadcast Services, including video and audio-only music services, before deciding on any required regulation of these services. The objective is to ensure that everyone offering services in Canada is playing on a level playing field," he added.

"The CRTC has managed over the years to create a successful broadcast industry that serves the needs of Canadians and that supports the development of Canadian talent through funding initiatives and the promotion of Canadian culture. For generations, the Canadian Broadcast industry has evolved successfully from radio to television and now includes digital cable, DTH, IPTV and wireless while always maintaining the objective of supporting Canadian culture so it only makes sense for the CRTC to evaluate the impact of new Online Broadcasting Services that compete with the traditional, regulated broadcasters, Mr. Boyko concluded.

Stingray Digital is looking forward to sharing their comments and information regarding this matter with the Commission, as requested, by June 27^th, 2011.

About Stingray Digital Group

Stingray Digital is a leader in interactive music distribution. Our properties include Galaxie, the leading digital music service on TV in Canada and in the US, Music Choice Europe, a digital music service delivered to over 10 million homes in Europe and Africa, The KARAOKE Channel, the world's largest licensed karaoke library and karaoke service on TV with 50 million subscribers and on the Internet, Concert TV, a VOD service distributed to 30 million homes in the US and soon in Canada and Stingray360, a leader in sensorial marketing solutions for businesses.

Stingray Digital is financially backed by Telesystem and Novacap and headquartered in Montreal. Stingray Digital has 136 employees in offices across Canada and additional offices in Charlotte, North Carolina, Budapest and London, England. For more information, visit www.stingraydigital.com.