Press releasesMarch 23, 2016
The Singing Machine Company, Inc. (“Singing Machine”) (OTCQB: SMDM) and Stingray Digital Group Inc. (TSX: RAY. A; RAY. B), today announced significant growth in customers, downloads and revenue related to their continued karaoke partnership.
This success can be attributed to the August 2015 launch of Singing Machine’s innovative line of Digital Download Karaoke machines that work with Stingray’s redesigned new Karaoke Store. Since the launch, the Karaoke Store has delivered more than 260,000 karaoke videos, experienced a 45% increase in unique visitors, a 195% increase in orders, and a 107% increase in average revenue per user, compared to the same period the previous year. This successful partnership initiative gives karaoke fans easier-than-ever access to the fun of karaoke.
The reach and expertise of both companies played a crucial role in this significant growth in music sales: Singing Machine, the North American leader in consumer karaoke products, brings to the partnership the most recognized brand in home karaoke hardware and world-wide distribution of over 1 million karaoke products per year, while Stingray, a leader in business-to-business multi-platform music, offers the largest library of licensed karaoke content and experience in music product development and distribution.
“Karaoke has been a part of Stingray’s DNA since its earliest days,” said Mathieu Péloquin, Senior Vice-President, Marketing and Communications of Stingray.”When karaoke fans are happy, we are happy! The immediate success of our new Karaoke Store confirms that there is a demand for innovative products that facilitate access to karaoke content so consumers can spend more time singing. We are pleased to continue to partner with Singing Machine to bring new karaoke solutions to market.”
Gary Atkinson, Singing Machine CEO, commented, “We’re thrilled with the early success of the new Karaoke Store. Our customers are embracing the concept of downloads for karaoke and the feedback we’ve received has been overwhelmingly positive. We believe the recurring music revenue will continue to grow to become a significant portion of revenues as we continue to expand the digital download line of hardware and intend to incorporate Bluetooth™ technology into approximately 90% of our product lineup for this coming year.”
In addition, The Singing Machine Mobile Karaoke App (powered by The KARAOKE Channel), also in partnership with Stingray, has seen a 22% increase year-over-year in app downloads and a 72% increase in revenue. The mobile app works on Bluetooth™ compatible Singing Machine karaoke systems. During December 2015, the app reached as high as the #9 top grossing App in the music section of the Apple™ App Store in the US.