Destiny Media Technologies, Inc.Corporate Update
Vancouver B.C. – April 17, 2006 – Destiny Media Technologies (DSNY OTC BB, DME 935 410 Frankfurt) is pleased to announce that Q2 financials have been filed. Quarter over quarter revenues increased 23% from $182,017 to $224,745. Revenues are expected to continue to increase into Q3, reflecting strong growth in new Clipstream™ licenses and increasing usage by recurring accounts. The loss for the quarter included extraordinary non-recurring expenses. The company anticipates Q3 will show a profit.
New product R&D continues to be a strong focus. Products launched in Q2 include :
• Clipstream™ Audiomail server (http://www.audio-mail.com)
• Clipstream™ Video Japanese Edition
• Promo Only MPE™ 2.0 for both Mac and PC
• Integration of MPE™ into internet enabled jukeboxes
R&D expenditures will increase approximately 50% in Q3 as the company plans to invest heavily in new development. Some of the projects expected to launch in Q3 include :
• A major upgrade of Clipstream™ featuring a significant improvement in media quality.
• Clipstream™ Live Japanese Edition
• A new MPE™ powered product launch
One vertical that will continue to exhibit strong growth is online video surveys for market research companies. Clipstream™ is the only streaming solution that can be secured to a host website, preventing the content from being copied. Even “screen scraping” programs are unable to copy Clipstream™ content. In addition, nearly every user is able to access Clipstream™ powered video content as no player software is required. This combination has made Clipstream™ the preferred solution for this market niche. An extremely high percentage of respondents complete online surveys featuring Clipstream™ video clips, providing a compelling return on investment.
Another vertical that has been quite strong is Clipstream™ Live. A live stream can be initiated in near real time from a standard PC. The signal from a remote event can be replicated through our repeater network to thousands of users that access through a standard web page interface. Users don’t have to download software to view the live signal.
MPE™ usage has grown to become the industry standard for digital delivery for pre-release music. In excess of 10,000 new releases have been sent through the system. All the major US labels are sending songs and the system has the support of every major radio network with over 7,000 radio recipients registered. The MPE™ system is integrated into the Mediabase 24/7 monitoring service and industry leader Radio and Records has combined with Promo Only as the exclusive sales representative in the US.
Despite these impressive numbers, revenues for MPE™ have been modest and will continue to be modest (estimated 15% of revenues) in Q3. A number of labels are now contracted to use the MPE™ system to send music to radio stations and are paying monthly fees, but most labels are sending a CD version to radio along with the digital version. The fees to the labels will increase as they are able to enjoy the savings associated with sending pre-releases by digital only.
The savings to the labels will be significant as we are able to assist them in weaning radio off of physical CD’s. We expect that much of the industry will be “digital only” by the end of the year.
When the full transactional pricing model is in place, we expect that MPE™ will become a large business for the company.
About Destiny Media Technologies
Destiny Media Technologies, Inc. (www.dsny.com) (DSNY.OB) is a leader in developing easy-to-use tools for distributing media through the internet. The company's suite of streaming and downloadable products includes: Clipstream ™, Destiny Media Player ™, Radio Destiny ™, and MPE ™. Established in 1991, the company is headquartered in Vancouver, Canada.
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"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.