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The Long Tail - Wired Blogs
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"The Long Tail
A public diary on themes around my books
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« August 2005
Main
October 2005 »
9 posts from September 2005
September 30, 2005
The First Long Tail IPO?
Rafat Ali of PaidContent has pointed me to what may be the first pure-play Long Tail IPO. I'll quote from his post in its entirety, since as always he does a great job with the background info: Digital Music Group ,
a seller of digital musical recordings to online stores, is planning to
go public in an IPO of up to $36 million of common stock.
The Sacramento, CA company--currently wholly owned by Musicworks International and Rio Bravo Entertainment--holds rights to more than 200,000 digital music recordings, with half acquired in this month .
More than 17,000 are available for sale through online music
stores...The company also stated that more than 80 percent of revenue
since its inception was generated through the online music store
iTunes.
For the six months ended June 30, the company posted a net loss of $866,172 on a total revenue of $223,672. CEO Mitchell Koulouris is a veteran of Tower Records; his bio is here .
From the company's S-1 document filed with SEC :
"Our strategy is to rapidly acquire by purchase or license the digital
rights to as many music and other sound recordings as possible. Our
focus is on acquiring rights to back catalogue, out-of-print
recordings, past hits and independent label recordings, including those
that are not currently available for sale in traditional music
retailers. Other recordings we may acquire include music and audio from
live performances not previously commercially available, radio and
television productions, and other sources that we identify."
Posted at"
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