Destiny Media Technologies Reports Record Revenues for Q2 2008
During the past four months (to March 31, 2008) agreements were reached with EMI North America company wide, more than 50 independent record labels, and approximately 30 independent promoters. The independent promoter agreements in turn represent in excess of 125 independent record labels. Many of these agreements were reached later in the quarter or into the third quarter so these contracts are expected to have a more significant impact on revenue as the year progresses.
Despite the seasonal slowdown in sends when labels shut down for the holidays, MPE® revenues still exceeded the previous high set the prior quarter. Clipstream® revenues declined by 15%, while MPE® revenues grew by 8%. The loss from operations declined 3%.
The company has been developing a subscription based automated Clipstream® hosted solution for customers which is expected to launch in Q3. Customers will have full reporting and complete control of their video content, which will be hosted on Destiny’s server farms, but which will appear to be embedded in their own page or other third party pages on the net or even within their own emails. The slight decline in Clipstream® revenue is a result of a decrease in marketing efforts in anticipation of this launch.
“While still modest, revenue exceeded management’s projections on the strength of new contracts and increased usage by existing customers”, said Fred Vandenberg Chief Financial Officer. “We look forward to transitioning the rest of the industry from trials to paid agreements and expanding our usage globally. Tests are underway in Europe, Asia, Latin America and Australia / New Zealand. Approximately 90% of MPE® revenue in the quarter was from the US, while the remainder is from Canadian usage.”
About Destiny Media Technologies
Destiny (http://www.dsny.com) is a software development company which provides tools that some of the world's largest media companies use to distribute their content on the Internet.
The MPE(TM) product line is based on two patent pending technologies which give the content owner the choice of locking content or embedding a digital trace that identifies the person that made copies. The Play MPE(TM) (http://www.plaympe.com and http://www.myplaympe.com) music preview service securely moves pre-release music for over thousand record labels to trusted third parties, such as radio stations and media outlets. PODDS(TM) (http://www.podds.ca) is an MPE® powered white-label software solution for securely selling music online. Destiny operates their own online store selling digital music to DJ's and online jukeboxes in Canada.
Clipstream® is a standards based streaming video solution which reaches more viewers than other technologies at a fraction of the bandwidth cost. Other products require the purchase and maintenance of complicated and expensive streaming servers. With Clipstream®, content owners simply encode and upload to their existing web server. Visitors to the site don't need to download or install video software. Clipstream® products include on demand audio (http://www.clipstreamaudio.com) and video (http://www.clipstream.com), internet radio (http://www.radiodestiny.com), IPTV (http://live.clipstream.com), telephone audio (http://www.audio-mail.com) and solutions for adverting (http://www.clipstreamad.com/) and market research (http://surveyclip.com/) customers.
"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.