How soon they all forget how big this can turn into.
C:\WINDOWS\temp\Scottsdale firm buys into e-sales.htm
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.
More Growth for Generation Record Labels Releases and Signings Signal Success in 1999
More Growth for Generation Record Labels Releases and Signings Signal
Success in 1999
SCOTTSDALE, ARIZ. (Jan. 14) BUSINESS WIRE -Jan. 14, 1999--Generation
Entertainment Corp. (OTC BB:GNEN) has announced a spurt of new releases
for its record labels, Copper Sun and Harvest Music, in the first half
of 1999.
At least 19 albums and 13 singles are ticketed for release in the 1st
and 2nd quarters. Almost every type of music is represented in these
new releases. Recent signings have resulted in 6 additions in the
gospel genre alone.
Bill Craig, the seasoned veteran who is president of the music
division, plans to maintain a strong presence for the labels in both
R&B and Jazz. Craig is also excited by the recent surge in sales for
swing music. Noting the potential in that market, he has has signed a
swing band from Pennsylvania; Rob Steinbeck Big Band.
Craig, calling on his 33 years of success in the record industry,
foresees a steady, strong growth for the labels. "I am projecting sales
in the range of 3 to 3.5 million dollars in the first and second
quarters," said Craig. He projects the revenues for the second half of
1999 will double to triple those first half numbers (6 to 15 million
dollars).
According to Craig, the strongest sales will likely be in R&B and Jazz,
with Gospel continuing it's steady contribution and the newer Swing
Band genre coming on strong as the year progresses.
With all the expansion taking place, Copper Sun and Harvest Music must
expand their facilities to match. As of Feb. 1, 1999, the labels will
be occupying new offices in the Detroit area. The move will double the
space currently occupied. Anticipating the increase in sales and
marketing, the office staff will also be increased.
Forward looking statements in this release are made pursuant to the
"Safe Harbor" provisions of the Private Securities Litigation Reform
Act of 1995.
Investors are cautioned that such forward-looking statements involve
risks and uncertainties, including, without limitation, continued
acceptance of the company's products, increased levels of competition
for the company, new products and technological change, the company's
dependence upon third-party suppliers, intellectual property rights and
other risk detailed from time to time in the company's periodic reports
filed with the Securities and Exchange Commission.
-0- aec/ix*
CONTACT: Generation Entertainment Corp., Scottsdale
602/967-1717
|
