FYI
October 1, 1999
OVERVIEW
As indicated in the first segment, FYI is intended to be an information site for shareholders and other parties interested in Generation Entertainment. To that end, let me address several issues and provide some additional information regarding E Music Productions.
E MUSIC PRODUCTIONS, INC.
Through the process of evaluating our business resources, we found that revenues were not meeting projections. It was evident that we needed to redefine our processes and marketing. Because the value of our company has to be built on the level of our profit, we needed to create substantially greater revenues.
All of our record labels were intended to provide us with a volume of product that would make e-commerce on the CD Music site feasible and profitable. With the addition of E Music Productions we now feel that the return on investment will be substantial. The amount of inventory will be sufficiently large to bring consumers to the site on a regular basis. This will build value in our websites, value to our shareholders and stability to our company for many years to come.
As you probably know, traditional record labels are normally in flat sales positions through the last two months of the year. E Music Productions will not experience this plateau because we are not dependent upon the normal two months preparation time to release product to the market as is required through current distributors. E Music Productions will broaden our market share by providing an outlet for many more genres of music than we normally would be able to support through our other labels. We will be able to offer more than 23 categories of music and will be known as the website with the most diverse offering of original music found anywhere.
E Music Productions completes the triangle of services and companies that we are aligning for the future of the music industry. E Music Productions will provide equal opportunity to as many new artists as we can physically process and post on the website. We have effectively bridged the gap between the traditional brick-and-mortar industry with an on-line counterpart that will be faster, more efficient and far less expensive to operate. Contracts with artists, which used to take many weeks to negotiate, will now be available to download directly from the site and accomplished in a mater of hours or sometimes minutes. Artists will be able to choose from a menu of services that can be tailored to their individual needs instead of pushing them through a formula of mechanical processes that they may not need or want. Every artist comes with a different level of accomplishment and level of completion in their careers. E Music Productions will fill the gaps for the artist without holding their career hostage though punitive contracts or excessive charge-back costs for sales, manufacturing and marketing. Each of our artists will essentially be in complete control of their own destinies. They will in effect become their OWN record company utilizing our infrastructure and feedback from our on-line consumers.
The newly announced E Music Productions promotion will open the floodgates for exciting products and explode our inventory over the next few months. We feel that E Music Productions will be known as the largest Internet record label in the world.
CDMUSIC.COM
We are in the process of completing extensive changes to all of our websites. CDMusic will have a brand new look and we are adding all the bells and whistles that will make this a destination site instead of being only a pass through site. When completed, we feel this will be an award winning and profitable site.
SEC FILING
We are in the final stages of becoming a fully reporting company. We have finished most of the internal process and have formally notified our subsidiary companies to complete the documents, which have been forwarded to them. This move to the next level of our operation is important to all of us who have invested our time and to those of you who have invested your dollars and faith in the vision for Generation Entertainment Corporation.
PUBLIC RELATIONS
Finally, we are continuing to interview companies who understand our industry and who can help to create brand identity for our company. We plan to make our selection over the next few weeks. We are excited about what we have been shown so far and know this is one of the most important elements or our business.
The transition and transformation of Generation Entertainment Corporation has not been without it stumbles. But, we are literally working around the clock to build a company with tangible value and a reputation as one of the most respected companies in the entertainment industry. The Board of Directors, our entire management team and myself are all committed and dedicated to making GNEN successful.
Look for the next information update next month.
Samuel M. Rodenberger, CEO
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