Play MPE Revenues Grow for 11th Consecutive Quarter; 96% Increase Over the Prior Year
VANCOUVER, British Columbia, July 14 /PRNewswire-FirstCall/ -- Destiny Media (OTC Bulletin Board: DSNY), the global leader in the secure distribution of pre-release music to radio and provider of instant play streaming video and audio, is pleased to report record revenues for Q3 which covers the period March - May 2008. Company products include Play MPE(R) and Clipstream(R).
According to Destiny CEO, Steve Vestergaard, this was the quarter where Destiny clearly emerged as the company which will become the global standard in digital delivery of pre-release music. "We've built a foundation where we can confidently say we expect to be profitable by Q1 (Sept. - Nov.). We've reduced expenses by over 20% from the prior quarter and expect costs to continue to decline. We have maintained upward revenue growth while implementing a new system of calculating price per send, which while beneficial to the labels in the short term, should result in higher volumes and revenues in coming months. We expect a revenue spike in the first quarter.
"Our system usage continues to grow. We expect to announce at least one more company wide major label agreement and one major label international agreement in Q4. We also expect to announce significant progress with our expansion into Canada and new industry partnerships."
The company currently has company wide North American agreements in place with Universal Music Group and EMI. In addition, agreements are signed with sub labels of Sony BMG and Warner in North America and with UMG, Warner and Sony BMG in northern Europe. System trials are active in countries across Europe, Asia, Latin America, and in Australia and New Zealand.
Clipstream revenues are also expected to increase sharply in the first quarter. The new Clipstream(R) hosted system, under development for over a year, is expected to launch by Q1. The solution, which will be initially marketed into the music industry will feature automated encoding, hosting and reporting, asset management and list management. Users will have the ability to upload and share any content type. They will have the choice of accessing the content directly from the Clipstream(R) website, as an email or through embedded code built into user websites, blogs and social network sites. If the content is audio or video, it can be optionally and automatically converted into the Clipstream(R) format or converted into rich media such as a Clipstream(R) rollover audio or video ad. Other technologies, such as Clipstream(R) Audiomail, Clipstream(R) TV, Pirate Radio and Destiny's watermarking will be integrated into this new system. An optional search feature will tie together related content even though it may be spread across different user websites, providing YouTube style functionality without requiring the content to be located on a third party destination portal.
Highlights
* UMG announced expanded agreement with Play MPE into Canada, US and Mexico; only company wide solution
* Agreements with high profile companies including Robbins, Rounder, New West, Koch, Curb, CO5, A&R MusicExpo, sub labels of Sony BMG and Warner
* Expansion into Northern Europe, agreements with Sony BMG, Warner, UMG Sweden
* Vancouver site visits and server audits with EMI in anticipation of much higher volume rollout
* Partnered with Shooting Star in Australia and New Zealand, rollout begins with radio and majors
* Testing in Europe, Asia, Latin America
* Launched new player, popular agentless web access "Direct to Web"
* Launched new Mac spoof ad campaign, presented at Country Radio Seminar, Conclave, etc.
* Launched Blue Note campaign, direct download access across Clear Channel's Mediabase charts
* Published watermark patent; this proprietary technology is the only
inaudible solution which can be embedded nearly instantly, but still survives
analog duplication, compression, conversion into other formats and resampling
and filtering.
Results
Q3 2007 Q2 2008 Q3 2008
MPE Revenue 164,748 284,054 301,604
Clipstream Revenue 85,951 69,303 60,775
Pirate Radio Revenue 8,509 6,452 6,720
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
May 31, May 31, May 31, May 31,
2008 2007 2008 2007
$ $ $ $
Revenue 369,098 259,208 1,085,555 599,206
Operating expenses
General and
administrative 206,646 223,977 838,385 489,656
Sales and marketing 323,330 372,168 1,244,920 890,067
Research and
development 335,540 272,904 1,120,829 620,106
Amortization 11,781 16,530 33,326 43,591
877,297 885,579 3,237,460 2,043,420
Loss from operations (508,199) (626,371) (2,151,905) (1,444,214)
Other income
(expenses)
Other income 31,384 -- 73,499 --
Interest income 492 18,525 15,451 18,525
Interest and other
expense (9,237) (3,134) (18,480) (10,362)
Net loss (485,560) (610,980) (2,081,435) (1,436,051)
About Destiny Media Technologies
Destiny (http://www.dsny.com) is a software development company which provides tools that some of the world's largest media companies use to distribute their content on the Internet.
The MPE(R) product line is based on two patent pending technologies which give the content owner the choice of locking content or embedding a digital trace that identifies the person that made copies. The Play MPE(R) (http://www.plaympe.com and http://www.myplaympe.com) music preview service securely moves pre-release music for over thousand record labels to trusted third parties, such as radio stations and media outlets. PODDS(TM) (http://www.podds.ca) is an MPE(R) powered white-label software solution for securely selling music online. Destiny operates their own online store selling digital music to DJ's and online jukeboxes in Canada.
Clipstream(R) is a standards based streaming video solution which reaches more viewers than other technologies at a fraction of the bandwidth cost. Other products require the purchase and maintenance of complicated and expensive streaming servers. With Clipstream(R), content owners simply encode and upload to their existing web server. Visitors to the site don't need to download or install video software. Clipstream(R) products include on demand audio (http://www.clipstreamaudio.com) and video (http://www.clipstream.com), internet radio (http://www.radiodestiny.com), IPTV (http://live.clipstream.com), telephone audio (http://www.audio-mail.com) and solutions for adverting (http://www.clipstreamad.com) and market research (http://surveyclip.com) customers.
Company Contact
Fred Vandenberg
CFO Destiny Media Technologies, Inc.
604 609 7736 x236
fredv@dsny.com
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE Destiny Media
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