I think some of the NETR STRATEGIC ALLIANCES may have been mentioned last weekend but here they are again.
INTERNET ALLIANCES. We have entered into traffic and technology alliances
that we expect will continue to attract customers, build brand loyalty, and
improve the quality of our broadcasts, such as:
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- RealNetworks. RealNetworks licenses software that allows our listeners to
hear our audio streams. In addition to providing technology, we believe
that RealNetworks is an important source of traffic to our Web site. We
have several channel pre-sets on G2, a recent version of RealNetworks'
audio player. RealNetworks operates a popular audio Web site called the
Daily Briefing. We supply 7 information channels to the Daily Briefing.
- AT&T Corporation. We have entered into an agreement with AT&T under which
AT&T will provide additional bandwidth, round-the-clock technical support
and redundant back-up servers, to meet our increasing listener demand.
- MediaOne. We have created a co-branded Web site with MediaOne, the
broadband services arm of MediaOne Group. MediaOne is a leading provider
of cable modem (broadband), telephone and wireless communications
services. Some of the MediaOne Web sites contain links to NetRadio that
enable MediaOne subscribers to listen to our programming through a higher
quality connection than is normally available through a standard telephone
line.
- @Home Network. We offer two 80kbps channels to @Home Network, a division
of @Home Corporation. @Home provides high-speed, fully-integrated
multimedia Internet and online services using cable television technology.
@Home subscribers have the opportunity to listen to our programming
through a higher quality connection than is normally available through a
standard telephone line.
- Ark Interface II. Since August 1, 1997, we have had an Electronic
Advertising Agreement with Ark Interface II of Seattle, Washington. Ark
Interface II operates a Web site called MySpace Online, formerly known as
Planet Oasis. A radio tower branded "NetRadio" appears on the home page
cityview of MySpace Online. NetRadio also operates a custom,
commerce-enabled audio interface that appears on the MySpace Online Daily
page and provides access to 39 NetRadio music and information channels.
- Packard Bell NEC, Inc. Under the Ark Interface II agreement, all Packard
Bell and NEC Ready brand multimedia personal computers sold in the United
States since July 1998 with Windows 98 operating systems feature an audio
player interface called Net Media Player on the desktop. The Net Media
Player provides access to 35 NetRadio music and information channels.
FULFILLMENT ALLIANCES. We have entered into fulfillment alliances to sell
products and provide customer service. By integrating multiple fulfillment
sources, we increase product fill rates and enhance customer service.
- Navarre. In December 1998, we entered into a five year product fulfillment
agreement with Navarre, our majority shareholder, for fulfillment of music
purchases. We look to Navarre first for order fulfillment and delivery. We
currently buy approximately 5-10% of our music products through Navarre.
Purchases through Navarre improve our margins because we pay lower
shipping and handling fees to Navarre than we pay to Valley Media. We also
pay a lower acquisition cost for purchases of titles available exclusively
through Navarre. Finally, through Navarre we gain access to artists and
independent and national record labels.
- Valley Media. In 1998, we entered into a distribution agreement with
Valley Media to provide an alternative fulfillment source for products
that are not available through Navarre. Valley Media is the leading online
fulfillment source for music and other entertainment software products.
Valley Media has approximately 250,000 stock keeping units in inventory,
and a wide selection of music, videos, DVDs, and music-related
merchandise.
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