Destiny Media Technologies Provides Third Quarter Update
Vancouver, BC – May 3, 2007 – Destiny Media Technologies (DSNY: OTCBB) today provided an update of its progress for the third quarter of fiscal 2007 ending May 31, 2007.
"We expect access fees from our proprietary Play MPE™ secure digital media distribution system to more than double this quarter compared to last year's third quarter and this year's second quarter, and revenues generated by MPE-powered products to exceed a record $150,000 compared to approximately $65,000 for the second quarter of 2007. Including revenue expected from Clipstream and other products, we currently expect total revenues for the third quarter of fiscal 2007 to exceed $225,000," said CEO Steve Vestergaard.
"We expect MPE-related revenue to ramp significantly in subsequent quarters from this still-modest pace. Play MPE offers a compelling value proposition to the music industry that currently spends an estimated $100 million annually on the production of hard copies and traditional messenger services to distribute pre-release content to radio stations and other trusted recipients. Our Play MPE web-based secure digital distribution system can eliminate a substantial fraction of these costs and still support dramatic growth for Destiny and deliver value for our shareholders," Vestergaard said.
Record labels that have entered into commercial agreements with Destiny have been able to send fewer physical CDs, and some are already delivering content exclusively through the MPE system. Customers also benefit from the unique security and tracking features of Play MPE. "Awareness within the industry of the advantages of Play MPE is rapidly increasing, and we are confident that additional labels will enter into agreements with us," Vestergaard said. He added that the Company's credit card-based upload system to accommodate the promotional media distribution requirements of smaller independent labels is scheduled to go on-line this month.
"The response to last month's launch of Play MPE in the Canadian market has exceeded our expectations," Vestergaard continued. Two majors have already sent 938 songs and other labels have sent 100 songs, and virtually all of these songs were sent under paid agreements. Already, 550 Canadian recipients have installed the Play MPE player and are actively using the system.
"With the increasing momentum in system usage, and the more favorable pricing for our Play MPE services scheduled later this year, we are optimistic that our growth is just beginning," Vestergaard said.
Third quarter revenue from the Company's just-released Clipstream 3 system for embedding streaming audio and video into web pages is expected to be below prior year, as efforts during the quarter have focused on establishing Clipstream 3 partner relationships rather than direct sales to end users. "We are supporting the launch of this exciting new product with an aggressive advertising and marketing campaign that is only now beginning to reach potential customers, and we continue to expect renewed growth in this business as these programs gain traction in the marketplace. Clipstream 3 provides instant video and sound on virtually any internet browser and does not requiring users to install software or open their computers to potential security threats. With these unique features, we believe Clipstream 3 gives us a strong competitive position in this attractive market," he said.
Destiny completed an oversubscribed private sale of its common stock on February 26, 2007 for net proceeds of $2,160,000. At February 28, 2007, the company reported positive net working capital of $1,733,306 compared to <$59,429> at August 31, 2006. "We are confident that we have the financial resources we need to implement our plans," Vestergaard said.
Play MPE Transaction Results
687 singles totaling 844,396 transactions
360 bundles representing 1,294 songs totaling 1,629,533 transactions
144 albums representing 1,918 songs totaling 2,989,994 transactions
11 box sets representing 297 songs totaling 295,135 transactions
328 singles totaling 344,089 transactions
127 bundles representing 449 songs totaling 571,546 transactions
102 albums representing 1,351 songs totaling 1,858,826 transactions
18 box sets representing 451 songs totaling 672,697 transactions
303 singles totaling 317,425 transactions
162 bundles representing 647 songs totaling 852,712 transactions
123 albums representing 1683 songs totaling 2,824,542 transactions
21 box sets representing 507 songs totaling 1,681,613 transactions
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.