HEY, These guys (Platinum Ent.) sound like Global Media Re:GLMC
GLOBAL MEDIA RELEASES FINANCING DETAILS AND OUTLINES FRANCHISING
Strategy for Direct Competition with Amazon.Com and CDNow
NANAIMO, B.C., Oct. 6 /PRNewswire/ -- Global Media Corp. (OTC Bulletin Board: GLMC) (http://www.globalmediacorp.com/) will offer a complete end-to-end franchise/licensee opportunity to third party Internet marketers as one of its key competitive focuses in targeting the established players such as Amazon.Com and CDNow. More sophisticated than the affiliate programs currently offered by its competitors, Global Media's licensing program will allow businesses to enter the online entertainment distribution market for CD's and videos without having to invest in the sophisticated back- end infrastructure already completed by Global Media.
Michael Metcalfe, President and founder of Global Media issued this statement to the media, shareholders and the investment community: "The franchising component of Global Media's competitive strategy will help thrust a smaller company into this market with a proven business concept, the franchise, which has yet to be fully developed on the Internet. Similar to the web site franchising of virtual communities offered by Geocities, the number of franchisees is unlimited and depending on the marketing dollars committed to by licensees, the incremental revenue potential is absolutely astronomical. If you could just imagine hundreds of Internet retailers as well as major 'bricks and mortar' businesses using our program to expand their markets... the numbers are staggering."
Winston V. Barta, Vice President of Marketing & Business Development for Global Media stated that "Global Media's business-to-business turnkey solution gives marketers a unique front-end web site allowing their customers to complete the purchase experience with the marketers' site and build their own brand name." Traditional affiliate programs, see N2K's Music Boulevard, also to be offered by Global Media, link into the franchise owners' site. The greater marketing commitments provided by licensees will translate into exponentially larger direct revenues and wholesale volume discounts for Global Media. "While this will not be Global Media's only competitive tool, franchising significantly addresses the market penetration issue in dealing with established competition," said Barta.
Metcalfe also stated that "Global Media also understands the importance of aligning itself with major players in the music and film industries..." and alluded to the fact that these relationships are already being pursued.
Global Media wishes to re-iterate its focus on both music and movies as viable products to profitably retail online as well as its confidence that its superior franchise/licensing program will attract the numbers of business-to-business clients, required to compete successfully against the established Internet retailers. Global Media's CEO Robert Fuller also pointed to the emerging market of online digital music sales, ancillary products such as concert tickets, entertainment merchandise, magazine subscriptions as well as advertising revenue as significant additional sources of revenue that will ensure Global Media's profitability.
When asked if Global Media would consider carrying books in addition to its current inventory of CD's, videos and DVD's, Metcalfe responded by saying: "If Borders and Barnes and Noble can sell books on the Internet, what's to stop Global Media? However I would be very surprised if these companies are not now taking us very seriously, especially with this style of marketing and the financing that will be in place."
Mary Missal, Senior Managing Director of F.M.C. Capital, (http://www.fmccapital.com/) said: "We at F.M.C. Capital are 100% behind what we believe to be a brilliant program that allows a complete network to be built over the Internet using the franchise model as the catalyst for expanding revenues worldwide." Missal added: "This allows Global to substantially expand its revenues without having to spend the incremental marketing dollars."
F.M.C. Capital has entered into a non-exclusive agreement with Global Media to fill its $6 million private placement offering consisting of 4 million units at $1.50 per unit, each unit consisting of 1 share of common stock and one warrant at $3.00 expiring September 30, 1999. This financing will be used for completion of the web site, integration of the various back-end components and initial marketing. An additional financing for $50,000,000 is planned for further marketing of both the web site and to establish Global Media as the premiere Internet franchiser online entertainment retailing and distribution businesses.
Employing cost-effective marketing strategies, Global Media is well positioned to take advantage of the emerging online music sales industry already being targeted by K-Tel using download and encryption technology such as that provided by Liquid Audio (http://www.liquidaudio.com). Global Media is also positioning itself for online video download sales using high speed Internet access technologies such as those being pioneered by At Home.
According to analysts, revenues from online shopping will exceed $6 billion this year, with projected sales reaching between $37 and $41 billion in 2002. Market research firm Jupiter Communications cites the strategic value of online sales of commodity products such as CD's, Videos, PC Software, paper products and event tickets. In 1998, the music and video industries are worth in excess of $70 billion world wide and will generate more than $200 million in Internet sales revenues. Projections reach in excess of $3 billion in 2002.
Global Media is a fully reporting issuer to the S.E.C. and is listed in Standard and Poor's Corporation Records. The Company began trading on August 24th, 1998, on the NASD OTC Bulletin Board under the symbol GLMC. Information about the Company can be found at the corporate web site at globalmediacorp.com.
On behalf of the Board of Directors,
Michael Metcalfe
President
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and section
2lE of the Exchange Act of 1934 and is subject to safe harbour created
by these sections. Actual results may differ materially due to number
of risks, including: the technological and operational challenges of
developing and deploying, the company's abilities to market the
services, and future customer acceptance and demand for the services.
SOURCE Global Media Corporation
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10/06/98 /CONTACT: Winston V. Barta,
VP Marketing & Business Development, Director Global Media Corp.,
888-322-2282, or winston@gmcorp.net, or Mary Missal, Sr. Managing
Director of F.M.C. Capital Markets, 941-434-8405, or
mmissal@fmccapital.com/
/Web site: globalmediacorp.com
fmccapital.com
(GLMC)
CO: Global Media Corporation; F.M.C. Capital Markets ST: British
Columbia IN: ENT MLM REA SU: FNC
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