Specifically, the Company, a pioneer in the development of an international network of integrated social media sites for the distribution, licensing, and marketing of high-demand digital media, announced that 100% of net receipts from audio and video downloads and 50% of net receipts from click-through advertising on artists' webpages will be remitted by IndieMV Media Group, Inc. directly to independent artists or the independent record labels representing these artists. For music and video sales, IndieMV Media Group will remit to artists the full sales price less only the card processing fee charged by credit providers. Advertising click-through remittances will be reduced only by any 'third-party rights owners' or collective agencies acting on behalf of songwriters, publishers or artists for tracking and processing payments.
"Our offering acknowledges the new economic realities of the digital media distribution business," said IndieMV Media Group President and Chief Executive Officer Ricardo Khayatte. "Merely transplanting the exploitive compensation models from a by-gone era directly into the new online world isn't in the best interest of artists, consumers, or the online digital music and entertainment industry."
Through major providers of online digital music and video downloads, various artists have reported receiving approximately $0.045 per $.99 download. For $9.99 album downloads, artists typically receive only about 14% of the proceeds, which amounts to approximately $1.40. Musicians who create CDs that are distributed under major record label management fare even worse. After charge-backs for packaging and manufacturing, retail profit and overhead, label profit and overhead, distribution costs, and marketing and promotion, artists receive about 10% of the sale price.
"The true cost of distribution today changes all the rules of fair compensation to the people who provide the all-important content," continued Mr. Khayatte. "Our opportunity for significant growth hinges on our unique ability to provide value-added features and services that, in addition to great music and entertainment, bring people to our site for its convenience, rich content, ease-of-use, and relevancy."
About IndieMV
IndieMV Media Group, Inc (IndieMV), a fully integrated, digital entertainment company, is a pioneer in the distribution, licensing, and marketing of digital media and its related businesses. Fueled by its partnerships with world-class record and management companies, wireless communication companies and major sponsorship corporations, IndieMV has positioned itself to be a leader in social-networking and digital media distribution on the web. www.IndieMV.com, the Company's first web property, is an entertainment based social-networking portal that will grow from its niche, music-based roots into a global provider of online services catering to an interconnected web of music and entertainment enthusiasts around the world.
"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
This press release contains certain forward-looking statements based on the Company's current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements include statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words and include statements regarding the planned and/or anticipated benefits to users of the Company's products and the timing of distribution of such products. Forward-looking statements in this release are based on information available to the Company as of the date hereof. The Company's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with the Company's business, which include the Company's ability to execute its business strategy and the other risk factors disclosed in filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
SOURCE: IndieMV Media Group, Inc.
IndieMV Ricardo Khayatte, President, CEO, 778-737-0076 or AgencyNext, Inc. Sterling Hager, 508-647-0044
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