WESTBURY, N.Y.--(BUSINESS WIRE)--In a continuing effort to educate as well as update its shareholders, Vibe Records (OTCBB: VBRE - News) reveals its new business model, showing that the direction of the company is truly “ahead of the curve” in the arena of digital distribution. Changes in the recording and digital media industries have only served to solidify Vibe Records mission statement.
It’s no secret that DVD sales are declining and the core business model of the major recording studios is quickly becoming obsolete. The era of marketing DVDs as sales units is fading fast. Couple that with the age-old practices used by record labels to sign artists and it’s quite obvious that the industry requires a major overhaul.
Recent Bloomberg interviews with Sony Pictures Chairman, Mr. Howard Springer and Netflix CEO, Mr. Reed Hastings have made these facts painfully evident. Check Out: (http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asMEvVm92mtc) and (http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1zxwiC6ELnA).
As a boutique record label & digital download company, Vibe Records views these developments not as an obstacle, but rather a great opportunity. Over the past years Vibe Records watched how the major recording studios fought the invasion of advanced technologies and refused to embrace the huge potential revenues offered by digital downloading and video streaming. Their defiance caused them pass on an opportunity of historical proportions, which left them years behind innovative and visionary companies like Vibe Records.
Vibe Records recently executed an MOU with a telecommunications carrier to host its music library as well as other media on one of the most flexible digital delivery systems in the country. The joint venture to be created as a result of this MOU, will place Vibe Records’ content at the fingertips of its customers who will be able to download the product at ultra high-speeds. This service will also be made available to other telecommunications carriers such as ATT, Verizon, Comcast and Time Warner to name a few. As an added bonus, these carriers will brand the Vibe Records downloads and re-sell them.
“With our telecommunication partner we will lead the industry in a new direction,” claims Vibe Records CEO Tim Olphie. “First, in our opinion, the sale or distribution of DVDs will face the same fate as the cassette and the VHS, and the digital download will be the way content will be delivered in the future. Second, rather than requiring a credit card to obtain content, in the future content will be delivered and invoiced to a telephone bill, opening the business to a larger segment of the population. Third, the digital downloads will be bundled with other services that the telephone/cable companies offer, like DSL or cable. And it is not farfetched to see the service offered as a flat price. Fourth, the digital downloads will be to cell phones, computers, DVR, digital TVs and other consumer electronic like XBOX and the WII,” concludes Olphie.
“With respect to the relationships of artists with the major studios, we at Vibe Records empower our artists,” continued Olphie. “In our model, the artists own their license to the songs and digital content, we distribute the content and they keep a lion’s share of their hard work. What Vibe Records is doing is leveling the playing field and democratizing the industry so that the artists and the record label company cooperate rather than compete. In addition, Vibe Records is again embracing technology by investing in Virtual Recording Studios where artists will record their sound files and deliver them to us for music/video mixing.”
Vibe Records will continue to update its shareholders on the progress of the company.
For further information, visit www.viberecords.com
Statements contained in this press release that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the current views of management with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or described pursuant to similar expressions.
Contact:
Vibe Records, Inc., Nevada
Investor Relations, 888-336-8423 (VIBE)
investorrelations@viberecords.com |
