valleyarm recieve 30% dist. fee, pre download!, page-10

Good investigating S. But I believe you will find the distributions fee is only associated with the Digisingle, if you guys do some research as to what a Digisingle is it may be useful.

It is a physical product that can be purchased from CD stores or gigs with a download code that can be used at a secure store to download the music. The artist pays $2,995 plus GST for 1000 of these cards to distribute as they see fit, they are delivered to the artist or label.

This is different to their DIY distribution deal costing $169. Where it is a 100% royalty model. THEY DON'T TAKE FURTHER FEES FROM THE ARTIST. Otherwise it wouldn't be a 100% royalty payment to the artist.

Now for those still guessing or suggesting the digital music retailers will pay to sell music, have a read of Valleyarms explanation of royalty payments.

http://valleyarm.com/support/how-much-do-i-get-paid-2

This is very simple guys, most digital distributors take a cut of the royalties paid to the artist. That is their payment. Why would the retailers set up a different deal with Valleyarm which would see the retailers take a smaller cut just to accommodate a 100% royalty model.

Below taken from Knol website regarding digital music distribution.
"There are three main business models used by digital distributors.

1. The fee for service model where the artist retains 100% of royalties and then pays an annual renewal or storage fee.

2. The subscription model where the artist pays a monthly fee and a variable percentage of royalties.

3. The upload fee and royalty percentage model where the artist pays an upload fee but no renewal or storage fee and the distributor takes a cut of royalties."

There is nothing to speculate about here guys, it's clear cut, you either think it will work or you don't. Suggesting further revenue is needed does a disservice to the company. Clearly TNC are of the belief that Valleyarm's business model will be profitable.

I have said in the past Musicadium ran for a number of years as a going concern with this model, Valleyarm appears to have improved on the service potential. Have some confidence in the managements decisions or sell up.

As always. Good luck all. I'm still out, but watching... (the share price, not you).

JB