Destiny Media Tech Inc (DSNY)

[Hugodrax]

Yeah it's hard to pin down and the explanations seem to morph over time.

I think it was this exchange w/ an analyst that gave me the impression:

"Hubert Mak – Cormark Securities

Okay. And then I guess in terms of selling to new territories and new recipient types, is Universal going to help you with that or you guys need to go on your own? Or what’s the strategy there?

Steve Vestergaard

They’ll help us with it. So the idea is mainly they have to market to their own sub-labels. So at the parent level they tell the sub-labels that they want them to use us but we still have to go out and train them, we have to get radio onboar. We have to make sure that lists are accurate, that we meet all the industry requirements. You know, some of the industry requirements vary from country to country; if there’s any incumbents there that we’re compatible and we work with the reporting systems and stuff like that that are in those countries. So it’s not really a sales effort as much as support and training into new territories."


That "they [UMG] have to market to their own sub labels" comment implies that the sub labels have discretion to use or not, and some combo of UMG parent and DSNY have to "sell" them on it. So Steve complaining it is out of their hands may be partially true.


I came across this in another call:

"Steven Vestergaard

So the expansion is mostly going to be geographical. To some extent, it will also be a change in recipient type. But you got to remember, the different departments in the label run somewhat independently. So at the parent level, they are ready. They are raring to go. They save a lot of money. They have been wanting to protect the content from security. They have a dictate that - everything that comes out of Universal is supposed to be secure. They are not allowed send out in that unsecured format. But they have to go out, and they have to train and market to their own sub-labels. So in each new territory, and as you can imagine, a lot of the territories are smaller, and you have got the language issue as an issue, they have to literally go in an train and market to those people. They also have to get radio to understand what the system is, and to get on board, and they have to make sure their lists are accurate.

So one of the things that we found, when we went to the UK, is that some of their lists have inaccurate email addresses. So if you try it a trial and you send stuff out, the download rates can be low. So there is a few things we are looking to do to address it, and we kind of talked about some of them, like the new social media site, and things like that, things that make the marketing people and the label want to use it."