Saturday, July 29, 2006 10:58:58 AM
"Increasing growth will require the Company in the future to make more significant capital investment in library content, distribution infrastructure and technology. The Company's current capacity will allow it to service approximately 15,000 monthly subscribers before significant investment would be required. The Company currently monitors its monthly growth rate to ensure it properly anticipates the timing of making additional investment in library content, distribution infrastructure and technology. The Company currently has five distribution centers, located in Southern California, Colorado, Kentucky, Maryland, and Massachusetts. If the subscriber base grows, the Company may seek opening additional distribution centers. "
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