DMGI Announces New Video Distribution Partners
4 February 2007
Digital Music Group, Inc. (Nasdaq: DMGI), a content owner and global leader in the digital distribution of independently owned music, television, film and video catalogs, today announced a new set of video channel partners, including In2TV, BitTorrent, and Movielink. As part of the agreements announced today, these retail outlets have agreed to distribute videos from DMGI's catalog through their respective video distribution services. DMGI currently owns or controls the digital distribution rights to more than 4,000 hours of video content, including favorites like "Gumby," "I Spy," "The Invisible Man," "Peter Gunn," "The Mr. Bill Show," "Clutch Cargo," and more.
The new video channel partners announced today include:
* In2TV: DMGI has entered into an agreement with In2TV to provide various
television series for exhibition through In2TV's Internet distribution
service (http://www.in2tv.com). The first collaboration between the
two companies was an airing of a "Gumby" Christmas episode in December,
and will continue with the February exhibition of "I Spy," the classic
TV show from 1965 starring Bill Cosby and Robert Culp. The full series
of "Gumby" is scheduled to launch on In2TV in March.
* BitTorrent: under the terms of the agreement, DMGI will distribute
certain video, TV, and film series titles through the new BitTorrent
digital entertainment network and will be paid either a fixed price per
download or a portion of online advertising revenue. The new
entertainment network, at http://www.bittorrent.com, will offer its community
of users the most comprehensive library of licensed content on the
Internet.
* Movielink: under the terms of the agreement, DMGI will distribute
certain video, TV, and film series for download, commercial free,
through Movielink's video service located at http://www.movielink.com/.
"We are proud to be working with these well known names in the digital video industry," said Mitchell Koulouris, Chief Executive Officer of DMGI. "We have been very focused on expanding our digital distribution business to include video, TV, and film, and are pleased to begin distributing our video catalog through these new channel partners."
For more information on the DMGI video catalog, please visit http://www.dmgi.com/video/.
About DMGI
Founded in 2005, Digital Music Group Inc. (Nasdaq: DMGI) is a content owner and global leader in the digital distribution of independently owned music, TV, film and video catalogs. DMGI acquires the digital rights to media catalogs and digitally encodes them into multiple formats for distribution to online music, mobile, and video stores. Our retailers include: the iTunes Store, Google Video, BitTorrent, Movielink, RealNetworks, Napster, Wal-Mart Music, Yahoo! Music, InfoSpace, Moderati, Zingy, 9Squared, and many others. For more information, please visit http://www.dmgi.com.
Digital Music Group is a trademark of Digital Music Group, Inc. Other names mentioned herein are the property of their respective owners.
Forward-Looking Statements
This release contains forward-looking statements (including, without limitation, information regarding Digital Music Group's new long-term distribution agreements for television, film, and video catalogs, DMGI's plans to begin delivering certain video properties to the maturing digital video market, and DMGI's opportunity to earn revenue from video downloads at fixed prices and through revenue sharing of online advertising revenue) that involve risks and uncertainties that could cause the results of Digital Music Group to differ materially from management's current expectations. Actual results may differ materially due to a number of factors including, among others: we may not be able to determine the proper valuation for the licensing of digital rights to video recordings; we will be substantially dependent on online stores and mobile services for the distribution and sale of our digital video recordings; we currently have digital video distribution agreements with a limited number of online stores and mobile services, and if we are unable to enter into additional distribution agreements with channel outlets on commercially favorable terms, this could limit our revenue; our success in this area depends on the market demand for digital video recordings and our ability to acquire and offer for purchase video recordings that appeal to consumers' tastes and preferences which are unpredictable; our approach for licensing music may not work well for licensing video recordings; video distribution is in its infancy and technical requirements are evolving; we may encounter unexpected difficulties in processing the video into digital formats or in meeting the technical requirements of the online stores; we may have to make significant investments in our technology and operating cost structure to meet evolving technical requirements; delays in processing and delivering video recordings to the online stores may cause delays in expected revenue growth; any significant changes from current processing requirements could increase our costs and delay or impede our ability to achieve a profit from the distribution of our video catalogs; online stores and mobile services could limit the types or amount of video content they will accept from content owners and distributors like us, and our revenue could be significantly reduced if we are unable to exploit all of the content we have under contract. The matters discussed in this press release also involve risks and uncertainties described in Digital Music Group's most recent filings with the Securities and Exchange Commission. Digital Music Group assumes no obligation to update the forward-looking information contained in this release.
Press Contact
Allen & Caron, Inc.: Len Hall, VP Media Relations,
Telephone: (949) 474-4300
e-mail: Len@allencaron.com
Investor Relations Contact
Digital Music Group, Inc.: Karen Davis, Chief Financial Officer,
Telephone: (916) 239-6010 x2505
Allen & Caron Inc.: Jesse Deal, Account Manager,
Telephone: (212) 691-8087,
e-mail: Jesse@allencaron.com
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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