Some info off the Burn Media Website.
Q: What business is Burned Media Ltd. in?
A: BM Ltd. is focused upon the sales and distribution of digital music via various online sales channels
Q: How will the Company accomplish this?
A: The company is developing a number of online properties and brands focused upon bringing music listeners & artists together as well as providing new tools and services for online broadcasters.
The company has developed the Burned Music(tm) Platform which is a web based software platform designed to deliver secure content (digital music) discovery features; integration with an online music download store with more than 2.5 Million tracks; web based user self-enrollment and management; content management; advertising management; online radio & video content and various broadcast business management tools.
The Hypster.com property is a listener/user application built on this platform. It is designed to offer online music listeners a social web-based means to discover and experience both their favorite and new music. The company can then use this intelligent software platform to model and predict user preferences and deliver new content recommendations for sale or live/online performance.
The company also offers for-fee services to music artists including online digital music sales, distribution and access to digital radio promotion and performance; as well as management, event promotion and live venue booking services.
The company operates www.freshtunes.com an online music download store with over 2.5 Million tracks available to US consumers with music from all of their favorite artists from $0.66-0.99 each.
Q: What are the company’s main objectives?
A: For 2007 the company will build out its platform to include additional user capabilities, integration into additional online social communities and beta wireless 3G mobile applications. It will strive to grow its hypster.com user base. The company will begin to develop relationships with advertisers to support this online community model and attempt to develop a revenue model around the hypster.com property.
In the area of digital artist development, the Hypster Digital Music label will to look to add additional artists under its for-fee model, building a catalog of artist recorded content for sales and online radio performance, not to mention acts it can book into both its own live events and those of live music venues.
Finally the company will build online software tools for Internet Broadcasters to learn about new artists and acquire music from both the Hypster Digital Music catalog and the catalog of other music labels. The company will develop software and solutions which attempt to address two major areas critical to this emerging broadcast business: 1. Revenue generation through online audio, video and banner advertising sales; and 2. Management of digital music performance copyright royalties- that is providing internet radio broadcasters with access to new content that is royalty free or fixed cost; and/or managing major label pay-per-play content.
In 2008 the company believes it will then have additional predictable metrics it can measure its ongoing success upon.
Q: Will the company launch a Facebook application. What about wireless?
A: Facebook? Probably. The primary motivation for extending the Hypster.com community or even freshtunes.com online property to interoperate with another social network, would be to grow the user base and ultimately sell/license music for individual usage or broadcast; or to generate other online revenues such as advertising. The company recognizes the F8 (Facebook) platform’s tremendous potential value but is making sure it understands the challenges faced by other developers plugging into this new open platform. We must be prepared for the possibility that this type of application could grow the user community by 100 to 10,000% in a matter of days, or even hours.
This type of potential instant growth while attractive on paper, is a significant stress on infrastructure costs and performance. These risks must be weighed against a potential increase in company valuation and/or revenue. That link is not clear so the company will proceed but with a few baby steps.
Wireless networks are expanding into 3rd Generation (3G) multi media high speed infrastructures. This means Broadband Internet access anywhere on any mobile device. Wireless carriers are investing in new 3G HSDPA and CDMA EV-DO networks which are slowly being rolled out across North American, Asia and Europe. This may be the avenue that has the greatest potential for revenue recognition of BM assets. As carriers increasingly provide consistent 3G coverage, service levels, handsets and rate plans, BM can begin to commercialize mobile music applications.
Q: What other properties will the company develop?
A: Complimentary web properties are being explored including hypster.tv, hypster.fm, makemyvid.com and textmytix.com. These are likely not targeted for development until Q4 of 2007 or Q1 of 2008.
Q: Is the company seeking additional investment?
A: It is anticipated that new capital investment will be an ongoing requirement for BM Ltd. as it is developing a vertically integrated digital music sales and distribution business from start-up. That means the company is building and investing in new technology assets which all add corporate value.
The digital music business is being targeted by very well funded Venture backed businesses who do not have the pressure of achieving revenues or even other short term arbitrary financial valuation. Music industry incumbents are well established multi billion dollar organizations who - while under threat due to digital trends, remain large, aggressive and powerful. The target market is a $30 Billion industry swinging away from old world media to new digital distribution, sales and delivery methods that BM ltd. is developing new technology and properties for.
Q: How do you measure the progress of the business currently?
A: For 2007 the key metrics are growth in users and pageviews on hypster.com; the addition of new artists to the Hypster Digital Music Catalog; launch of new complimentary online properties or software with future revenue potential; and live event bookings. As stated it is hoped that by 2008 additional metrics will be consistent and predictable enough for the business to measure it’s progress by.
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