Dittybase Technologies (fka DTTY)

[volume1]

EXECUTIVE SUMMARY
Worldwide music publishing industry revenues are approaching US $9.4 Billion by 2011
–eMarketer
May 2007
Dittybase Technologies provides the multi-billion dollar music publishing industry with an unparalleled, comprehensive package of products and services that result in increased profitability and streamlined operations for all participants — from record labels, music collections, composers and distributors to the end client: advertising agencies, motion picture companies, radio and television broadcasters, video game developers, corporate and multimedia producers and wireless/mobile entertainment developers.
who are we, and what do we do?
Corporate Overview
Dittybase licenses music for broadcast, film & home video, corporate productions, video games and Internet, and derives its income from taking a percentage of all license and royalty transactions completed via its automated system. Dittybase solutions dramatically reduce the costs associated with accessing, searching, distribution, storage, and publishing administration of music. Dittybase provides a complete suite of online solutions that enable creative enterprises to acquire production music, as well as manage all processes involving the use of production music, as required for use in the entertainment, advertising and corporate markets.
This results in increased efficiency and profitability for enterprises that produce, use, or monitor copyrighted music in media that is publicly performed and distributed worldwide.
Richard Branson recently sold all his Virgin Megastores. He said the Virgin Group had chosen to move away from retailing into licensing music.
–Sept. 17, 2007 AFP article quoting
Sir Richard Branson, founder, Virgin Group
Dittybase Technologies clients include:
Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.com
Dittybase Solutions
The dBc’s composers have worked with such artists as Paul McCartney, Sheryl Crow, Johnny Cash, Ray Charles, Linkin Park, Beck, and many more!
Simply stated, Dittybase has automated the labor-intensive and often inefficient process of acquiring and using music for film, broadcast, advertising and corporate media. Using Dittybase for creative needs turns a workflow that traditionally takes days or weeks into hours or minutes, resulting in significant savings for both distributors of music for production and its users. Dittybase provides uninterrupted, uncomplicated access to content around the clock, worldwide.
Online: Dittybase.com provides a business-to-business storefront with a unique database and web application for music used in productions. A single cut of music ranges in price from $80 to $30,000 or more for a single track used. A volume account ranges from $2,500 to upwards of $250,000+ for a one-year period.
Music Label: The Decibel Collective (the dBc); is a network of artists represented for catalogue distribution, custom music scoring, digital retail music marketing and licensing services. The Decibel Collective selects artists, producers, recording engineers and sound designers from all over the world. We place the right brand or production with the right artists within the collective. The dBc is distributed online at Dittybase.com, and by CD and DVD-ROM in North America and Internationally through sub-publishers and agents.
Digital Media Management System: dittyNET™ provides an integrated (client/server) software solution, as well as professional services, to media-intensive companies with private networks and in-house music libraries;
Dittybase Management
Our expertise includes:
more than 100 combined years of relevant industry experience
extensive business development and equity financing knowledge
the recording and production of music, and digital audio
music-related software development and source code control
marketing, direct sales and strategic alliance development
extensive information technology and project management knowledge
how do we compare with traditional music licensing?
Using the Dittybase method for music licensing has resulted in customers completing a project in less than 10 minutes, unattended!
Task
Traditional Method
Using Dittybase
Find Music
15 min – 24+ hours
2 – 15 min
Get Clearance, Rate from owner of copyright
5 min to 24+ hours
2 min
Multiple client approval in 3 different locations
90 min
20 min
Get latest releases
48+ hours
Instant
Project management
15 – 60 min
5 min
Total time to create a typical project from evaluation to license:
50 to 100+ hours
30 minutes or less!
.. I estimate that Dittybase has eliminated $15,000 in productivity costs in sourcing music for 120 spots across seven channels with nine production staff”
–Glenda Fermadell
Movie Central/
Corus Entertainment Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.com
what have we achieved so far?
Corporate Milestones
Dittybase has developed a powerful search system for the categorization of music tracks that is more accurate than the system of any existing competitor
Dittybase.com offers a common digital market for licensing production music
Dittybase launched the first completely automated music licensing process
Dittybase exclusively represents the Decibel Collective (the dBc) worldwide, for full music production services and music catalogue distribution with a sound that rivals major contemporary music labels. The dBc is a network of leading composers, songwriters, sound designers, recording engineers and producers.
The dBc has expanded foreign sales and distribution of the catalog by entering into agreements with sub-publishers in Japan, France, Australia and South Africa.
Dittybase has signed many major music libraries, independent artists, film and media composers and producers for digital distribution.
Current organic ranking on Google.ca for the two largest industry keywords: #1 ranking for Production Music Libraries, #2 ranking for Stock Music Libraries.
Our client list continues to grow with names such as NBC, MTV, National Geographic, FedEx, American Express, Honda, Pfizer, VISA, Motorola, Discovery Channel, Maybelline, Newsweek, Infiniti, Sony and many more!
how big are our markets?
Production Music Industry
Wherever there is a corporate brand or story to be told to the world, there is production music. You hear it everyday, and when you hear it, it’s generating publishing income. Dittybase takes a percentage of every transaction that occurs on its system!
According to 2007 eMarketer Research, The licensing of music for commercials, television shows, films and video games – known as synchronization licensing – is on the rise. This segment will increase in the next five years, reaching $2.5 billion annually in 2011.
In addition to synchronization licensing, all music publishing (income derived from mechanical royalties, public performances, broadcasts, cable, television, satellite radio and licensing of music for commercials, films, TV shows and videogames) continues to grow at a steady rate, from $8.0 Billion annually in 2006 through an estimated $9.4 Billion a year in the next 5 years.
Research estimates that the worldwide market for recorded music, live music and music publishing will reach $67.6 billion by 2011, growing at an average annual rate of 2.19% from the 2006 total of $60.7 billion. The growth will come predominantly from online and mobile music, the live concert industry and the licensing of music for public performances, commercials, TV shows, films and video games. Sales of CDs, which currently account for 55% of the industry’s total revenues, will continue to decline sharply, falling to 29% of the overall business by 2011. (source: eMarketer.com, May 2007)
who else is doing this?
The most significant competition for Dittybase remains the typical hard copy (CD/DVD) distribution standard still in use by industry
Management believes that we are without peer, because of recruitment of only the highest quality content, an unmatched standard of excellence in categorizing this content, as well as a generally superior user experience in all aspects of workflow and administrative tasks.
Our business model, software solutions, and services are the product of extensive research, knowledge and feedback from the major participants in the production music industry. The Dittybase solutions are uniquely tailored to the specialized needs of this industry.
Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.com
Competitors
Dittybase has “raised the bar” for on-line music licensing and project management service standards. Dittybase is set to lead and change the way music is licensed!
There are five significant competitors in our market, with products and/or services that are in part similar to Dittybase.
Pump Audio www.pumpaudio.com uses “Soundtrack” software, featuring only three criteria types to search with, as compared to the nine used at Dittybase.com. The client can also end up with “No Results Found”, meaning they need to begin the search over or else figure out which criteria to remove in order to find any music at all. Purchased by Getty Images for $42MM in June 2007.
Extreme Music www.extrememusic.com uses “Fastrack” software. Only allows one criteria per search, making zeroing in on the right music a tedious task. “Keyword Search coming soon” has been on their website for many months. Parent company “Famous Music” was bought out by Sony/ATV in June 2007, the total value of $400 Million, included $370 million in cash and debt of $30 million. Famous Music's catalogue of over 125,000 songs and sound cues includes music by Eminem and Shakira as well as movie soundtracks from "The Godfather" and "Mission Impossible”.
FirstCom www.firstcom.com FirstCom uses "MusicQuick" software. While decent software, the interface allows for "No Results Found", which can be frustrating. FirstCom is owned by the Universal-BMG Music Publishing Group.
Killer Tracks www.killertracks.com Killer Tracks uses "Killer Trakfinder" software (same software as fellow Universal-BMG owned FirstCom’s “MusicQuick”) to search, audition and add to projects.
APM Music www.apmmusic.com Almost 200,000 titles available, although not all music is available on their online system. Music is searchable through only one criteria at a time, not allowing for combinations of criteria to focus in on a particular sound, such as combining “Blues music” combined with “saxophone”, or “medium-fast tempo” and “Jazz”. Search is taxing and fatiguing for the user with this limitation. A joint venture of EMI Music & BMG
any public companies to compare to?
Name
Dittybase Tech.
www.dittybase.com
Jupiter Media
www.jupitermedia.com
The Orchard
www.theorchard.com
Description
Dittybase is a pioneer in on-line music licensing
Provides various images, original online information, and events for IT, business, and creatives in the US.
Acquires digital rights to music, digitizes and distributes it to on-line music stores. Merged with Digital Media Group in 2007 (www.digitalmediagroup.com)
Comment
Currently owns four separate stock music companies.
A parallel business model with consumers as target market.
Public Co?
Yes
OTCBB: DTTY
Yes
Nasdaq: JUPM
Yes
Nasdaq: ORCD
Market Capitalization
$3.76 MM
$110.33 MM
$45.48 MM
EPS
($0.02)
($0.01)
($1.56)
Revenue
$120,565
$138.99 MM
$28.5 MM
Price
$0.15
$3.07
$5.00
# of shares
25,033,365
36,000,000
9,100,000 Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.com
what do our clients think of us?
Testimonials
“I've worked with nearly every major music provider, from high-priced NY/LA composers of original pieces to the world's top stock music catalogs…. nobody does a better job of anticipating and exceeding a producer's needs than Dittybase. Their site for searching and auditioning music functions flawlessly. The quality and variety of their tracks are first rate. Samples are a cinch to download. Buying a track, and receiving a high-res version for use, is as pain-free as anything in this business can get. Add it all together with a crew that's friendly and professional and it's easy for even an advertising professional like me to figure it out: Dittybase is without equal.”
Michael Kirby
Creative Mercenary, Los Angeles, CA
“When our Executive Producer at the Discovery Channel reviewed our first cut for Touch the Future, the 40th Tokyo Motor Show episode, her first response was, 'where did you get the Muuusic!!' This is why Dittybase is our trusted music source for every show we produce.”
Mark Pingry
Director/Producer
“Dittybase did an amazing job helping us find music that perfectly matched what we were looking for. The quality of their tracks is superb, but it’s their responsiveness and expertise that sets Dittybase apart!”
Eric Haugen
TBWA | Tequila
“My jaw dropped on that last mix the dBc sent us. ‘Bad ASS! They nailed the music!’”
Pete Herzog, Producer
Janimation
“Dittybase makes it almost too easy. I can now select the right cut of music, instead of one that’s merely ‘close enough’.”
Jeremy Chugg – Producer
Brainstorm Media
“Dittybase has the right music for my needs and I always get friendly service with creative solutions”
Frederic Laurier
Studios Marko
“Having worked in the Audio Post & Sound Design production industry since the early eighties I have been waiting for Dittybase most of my professional life. From the search & selection process to the tech/sales support of the Dittybase team, searching for production music is actually fun and creatively rewarding again….. Thanks Dittybase!”
Doug McCann
“Dittybase is the easiest way I have found to search for, sample and license library music…. Dittybase has changed the way I work with library music.”
David Summerlin – Operating Partner
ColorBurst Media Group, LLC
“…Not only was my client very happy with the quality of the music, but Dittybase saved them precious time and money, and we looked good!”
Cindy McSherry – Operations Manager
Crescendo! Studios
Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.com
who are our customers?
Women’s Tennis Association – worldwide spot aired in 30 different countries
MTV – worldwide campaign
Entertainment Network - E! – used Dittybase music in National program
Pfizer – numerous product launches and internal communications
Liz Claiborne – campaign showcasing over 30 brands - DKNY, Monet, etc.
Sony – Playstation video games interactive video sampler
Matrix Games – launches 6 computer games containing Dittybase music
Sea·doo films – score - 15 min promotional web film
Maybelline – Worldwide TV spot
McDonald’s – Scandinavian TV spot
Honda – Promotional spot used at tradeshows and dealerships worldwide
Movie Central (Corus Network) – Broadcast ID & Annual Music contract
NBC Telemundo/Fremantle Media – music for a Hispanic soap opera
Delta Airline – Rich Media Banner campaign
OLN (Outdoor living Network) The Great Outdoors – 13 episode TV series
Discovery Network – Festivals of the world 13 episode series - worldwide dist.
National Geographic – several episodes worldwide
IBM – website
Fossil – Europe & Asia In-theater & Prime time TV spot
Xbox – website
EA Sports (Electronic Arts) – Retro Game series
Lance Armstrong – Live Strong website
Diebold – custom score new ATM worldwide product launch
Motorola – licensed a track for its worldwide websites, tradeshows, all Public relations activities and new product/services releases
Pfizer custom score – TV spot
Anheuser Busch Company – web
Infiniti – 3 separate campaigns featuring multiple Internet-based commercials
And many more!
what’s in the pipeline?
CBC Records and CBC Radio 3 – worldwide distribution rights to CBC Music Collection
Editions Atlas – largest classical music compilation ever released in France. Total project valued at over $1,000,000 CAD
National Geographic: Blue Realm – Four episode series
Nike Girl – Internal feature for Candace Parker, 21-year old Tennessee basketball star
Dove – North America-wide commercial/”campaign for real beauty”
Infiniti – MSN rich-media commercial/spot
“Greatest Race” – 2 hour documentary for worldwide release
Tampax – feminine hygiene commercial
CBC – prime-time drama series “The Border”
Showcase – series, “Paradise Falls”
Automotive marketing campaign – targeted to lead agencies for worldwide automotive brands containing over 4000 contacts
HBO Producers – Internet portal with exclusive content for 12 different online channels
Various symphonies and performing arts centers – seasonal promotional marketing
Electronic Arts (EA) – Dittybase has been working with senior audio directors to secure becoming the sole music vendor for select high-profile video game titles for sale worldwide
– seeking indie artist for corporate communications, tradeshows and dealerships in
Canada for one-minute product trailer
Mazda Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.com
summation
Dittybase has “raised the bar” for on-line music licensing and project management service
standards. Dittybase is set to lead e the way music is licensed!
contact us
Dittybase Technologies Inc.
31 Bastion Square, #102
Victoria, B.C. Canada
V8W 1J1
www.dittybasetechnologies.com
[e-mail]
250·381·8780
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in nature, including, without limitation, statements containing forward-looking comments about future results, management's plans and objectives for future
operations, current or future financial performance, management's assessment of market factors, prospects and opportunities. Dittybase Inc. has tried to identify
these forward-looking statements by using words such as "believe," "expect," "anticipate" and similar expressions. The forward-looking statements in this
document do not constitute guarantees of future performance. The forward-looking statements and comments in this document are made pursuant to the safe
harbor provisions of the Securities and Exchange Commission Act of 1934.
This document should be read in conjunction with the Company's most recent filings with the appropriate regulatory bodies, which contain additional discussions of
the Company's business including risks and uncertainties that may affect future results. Dittybase Inc. undertakes no obligation to update or revise any forwardlooking
statements, whether as a result of new information, future events or changed circumstances or for any other reason.
Dittybase Technologies Inc. Suite 102, 31 Bastion Square, Victoria, BC V8W 1J1 Phone: [phone]
www.dittybasetechnologies.comDITTYBASE EXECUTIVE SUMMARY