tnc valleyarm global partnership list, page-38

In the interest of sharing information here, as opposed to just providing unqualified optimistic opinions as some chose to do, follow below link in relation to a reference to 40,000 tracks being provided to Telstra by Valleyarm.

http://www.itwire.com/your-it-news/entertainment/41609-bigpond-gets-40000-music-tracks-from-valleyarm

The partnerships aren't important here Rob, it's the customer base in terms of artists for Valleyarm. Telstra and Nokia don't give a hoot about Valleyarm's business model, as it doesn't impact on their profit. Telstra, Nokia, i-Tunes and so on all still take their standard fee. I don't know what that is for Telstra or Nokia, but it's 69 cents for i-Tunes.

These large companies will allow anyone to distribute music through them providing they can anticipate making a dollar on these sales, they are looking for high volume artis sales, because that makes the biggest dollar for them.

Smaller independent artists are of much less interest to them, as lower sale artists take up room on their server for little profit.

The number of artists that Valleyarm is able to sign is the important factor here, and that is where you need to look at the competition, not the 'partners' you keep spruiking.

Now this article is the first that I have read that has given any indication as to number of artists signed by Valleyarm and the first opportunity to infer some form of revenue.

Now to keep figures simple, 40000 tracks, lets say an album has 10 tracks each (I know it varies, but just to keep it simple), so 4000 albums at an annual fee of $169 is an annual revenue of $676,000. Which is a good start in my view.

Before you get excited about it, I would do a bit of digging with Valleyarm to establish if different fees apply to artists already signed to a partner label. As I previously suggested I would expect the labels would be offered a discount to switch from their existing distribution deals.

Based on these figures I would still suggest a CR is going to be required unless another JV partner can be found in Cambodia.

As always good luck all, and DYOR, seems to be lacking a bit here.

JB

PS if you notice this was posted at 1.25 AM and think I have no life, I assure you it's not the case. I am on night shift and somewhat bored... Alright and I have no life. Cheers