Scottsdale firm buys into e-sales
New music company gets online retail site
By Jonathan Sidener
The Arizona Republic
Dec. 12, 1998
Generation Entertainment Corp. of Scottsdale, a fledgling music company, hopes to branch out into the trendy e-commerce marketplace.
Generation Entertainment on Wednesday announced it had purchased the online music retail site, CDmusic.com primarily for the catchy name.
"E-commerce is the hot topic right now," said spokesman Charles Robinson. "We've been getting a hundred phone calls a day since we announced this."
The CDmusic.com site is in need of an overhaul, Robinson said. The site needs a revamped look and a major upgrade of its ordering and shipping technology, he added.
"It's a very valuable name," he said. "Hundreds of people are coming there daily."
Generation Entertainment is the former Gunner Energy Corp., founded in 1989, which did not carry on an active trade or business until August, when the company changed its name and entered the music business.
The company owns two record labels, one for urban music and another for R&B. They are in the process of acquiring yet another label, Slipdisk-2K.
Following the sale, CDmusic.com has been taken completely offline. During an interim period that could last as long as five months, viewers will find little more than an "under construction" or "coming soon" sign, Robinson said.
When CDmusic.com goes back online, it will feature more than 198,000 titles in music and video offerings, company officials say.
Plans also call for buyers to be able to buy and then download their music selections.
Generation will give prominent exposure to titles under its own record labels, Harvest and Copper Sun, Robinson said.
"We will include our talent as the hot music of the day, which can be sampled by customers," he said.
Trading in the company stock has been active this week, rising to a high of 56 cents per share. The stock closed at 50 cents Friday. Generation Entertainment stock was at a 52-week low of 7 cents on Nov. 30. The company is an over-the-counter bulletin board stock.
Robinson said that management changes as well as the e-commerce announcement are probably responsible for the increases in stock price.
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Jonathan Sidener can be reached at 444-8169 or at jon.sidener@pni.com via e-mail.
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