FAB Universal (NYSE MKT: FU), a worldwide distributor of digital media
and entertainment, today announced the exclusive release of two new
albums through its wholesale, retail and digital distribution channel.
FAB Universal (NYSE MKT: FU), a worldwide distributor of digital media and entertainment, today announced the exclusive release of two new albums through its wholesale, retail and digital distribution channel. FAB exclusively launched 17 albums in 2012 driving new customers to its retail and kiosk channels and expanding the customer base for its wholesale division. The two new albums, Super Model and Smell Li Lingyu, are now on sale nationwide in China exclusively by FAB. “Exclusive distribution agreements with top artists are a very effective means to drive new customers into FAB’s retail and kiosk locations and expand the reach of our wholesale business,” said Chris Spencer, FAB Universal CEO. “Similar to what Netflix (NASDAQ:NFLX) and other new media distribution companies are currently moving towards, FAB is looking to bring more exclusive content deals to its network of distribution outlets, which we believe is the top network in all of China for musicians and artists to launch their latest album, movie or TV series.” FAB has aggressively been working to expand its media distribution platform to include copyright licensing, artist management, album production and distribution through its nationwide chain of retail stores, kiosks and wholesale customers. Based on its current media distribution model, Net Revenue for the FAB Universal distribution network was approximately $65 million for the first nine months of 2012. These two new exclusive deals include artist Li Lingyu, who sold 8 million copies of her last album and has sold over 80 million albums in her career. Li Lingyu launched her most recent album exclusively through FAB with a launch event at FAB’s Joy City flagship store in Beijing. Smell Li Lingyu was produced by Tempo Group and Super Model, a new album from Wind Forest Volcano Orchestra, was produced by the Taihe Rye Company. (The above financial numbers are pro forma and are stated as if the FAB acquisition had occurred on January 1, 2012. The three quarters of operating results would have resembled the above numbers which was disclosed in our third quarter Form 10-Q filing under Unaudited pro forma condensed consolidated financial information.)