MIAMI, FL / ACCESSWIRE / January 8, 2015 / Beta Music Group, Inc. ("BEMG" or the "Company") (BEMG), a digital media holding company providing interactive digital marketing, social and mobile marketing, television and online programing, strategic media consulting, direct advertising and other specialty communications services to promote small businesses, today provided an update to shareholders that reviews the company's accomplishments over the preceding twelve months.
Dear Shareholders:
Over the past year, many milestones have been achieved to develop Beta Music Group, Inc. ("the Company") into a dynamic digital media company from a near-term and long-term perspective. The Company has made significant progress on a number of important fronts and we thought it would best serve our shareholders to provide a shareholder update of the Company, history, strategic expansion and other pertinent information.
THE COMPANY:
Beta Music Group, Inc. is a digital media holding company providing interactive and digital marketing, social and mobile marketing, television and online programing, strategic media consulting, direct advertising and other specialty communications services to promote small businesses. The Company currently operates several subsidiaries including Viewpon, Sideshow Entertainment and EVG Media that will work together to generate revenues and value for our shareholders. Please review the Company website at www.betamusicgroupinc.com.
Viewpon is a lifestyle entertainment show and online listing services website that features small businesses and stories across San Francisco and the Pacific Northwest. From the coolest places to stay, play and dine, Viewpon takes viewers on a tour of all that is best in the area where they live. Viewpon has previously produced approximately 370 television shows, produced approximately 5,000 digital media network broadcasts promoting small businesses and has approximately 20,000 registered users, Viewpon's television show and digital video content website highlights small businesses and then offers those experiences at a discount. Viewpon's television show drives customers to our website where customers can view digital videos of our small business clients. Please review their website at www.viewpon.tv.
Sideshow Entertainment is a full service television and video production company producing original, non-scripted programming. Founded in San Francisco in 2007, Sideshow Entertainment has produced reality-based programming featuring home makeovers, real estate, home brewing, infomercials and even a game show. Sideshow Entertainment has partnered with high profile companies such as IKEA, Kelly Moore Paints, Big O Tires and Miller/Coors. Sideshow Entertainment prides itself in being able to help such high profile companies turn "branding" into compelling television. Please review their website at www.sideshowentertainment.tv.
EVG Media is a marketing and media licensing and specialty communications services company. EVG Media consults with small businesses to increase brand awareness via strategic planning and creating solutions to advertising and marketing challenges. EVG Media assists local businesses find and keep more customers via strategic marketing and media partnerships.
COMPANY HISTORY:
Prior History: Beta Music Group, Inc. which became public in January 2009 as a full reporting company with the symbol "BEMG". For information regarding the Company prior to October 31, 2013 transaction, we suggest to review the company filings with the SEC.
October, 2013. The Company completed a purchase and sale agreement between shareholders of EVG Media and certain shareholders of The Company. In connection with the purchase, a change of control was completed and the former CEO resigned from the Company's Board of Directors and as sole officer. Concurrent with the resignation, Jim Ennis was appointed as Chief Executive Officer and Chairman of Board of Directors. The Company completed the acquisition of usave acquisitions, Inc. via a share exchange agreement. As a result of the Share Exchange Agreement, acquisitions became a wholly owned subsidiary of the Company. Jim Ennis was appointed as President and Chief Executive Officer of Acquisitions. The Company initiated the launch of its digital media platform.
November, 2013. The Company continued its engagement with the auditing firm, Malone Bailey, LLP. Based in Houston, Texas and with offices in Beijing and Shenzhen, Malone Bailey is an international public accounting firm with deep knowledge and experience in the delivery of SEC audit services to small and mid-cap publicly traded clients with over 170 registrants as clients, including NYSE, AMEX and NASDAQ listed companies. Malone Bailey is a member of Nexia International and they have more SEC partners than their non-national competitors. They are one of only nine firms in the world that are inspected annually by the Public Company Accounting Oversight Board, along with the Big Four and major national firms and have more SEC specialists working on public companies around the world than most firms have clients. The Company is fortunate to have Malone Bailey as our audit firm in that they are experts when talking about small public companies. Please review their website at www.malonebailey.com.
The Company continued its engagement with the transfer agent firm, Pacific Stock Transfer Company. With over 28 years' experience, Pacific Stock Transfer has industry-leading knowledge to tailor an innovative individual solutions and the expertise to personally support our shareholders. Please review their website at www.pacificstocktransfer.com
December, 2013. The Company filed its Form 10 registration statement, including audited financial statements, in order for the Company to be fully reporting with the SEC. The Company also filed its annual 2013 10-K and quarterly 2014 10-Q filings. Please note that on July 17, 2014, the SEC completed its review of the Form 10 filings and 10-K filings with no further comments, this is viewed positively as it relates to streamlining future filings.
January, 2014. The Company announced it entered into a Strategic Partnership with Viewpon Holdings, Inc. ("VHI") which operates Viewpon and Sideshow Entertainment. The Company originally envisioned Viewpon would be a strategic partner to expand our digital media platform. After further review of the VHI digital media platform, the Company thought the best strategy for our shareholders was to seek an acquisition of Viewpon Holdings, Inc.
March, 2014. The Company announced the signing of a non-binding letter of intent to acquire VHI. The Viewpon and Sideshow Entertainment portfolio companies complemented the Company's operating model to produce digital video commercials for small businesses, would increase shareholder value and our company's expansion. The transaction, forecasted to close during the second quarter of 2014, was subject to customary closing conditions, satisfactory due diligence and including signatures of a definitive purchase agreement.
June, 2014. The Company entered into a Share Exchange Agreement, providing for the acquisition by the Company of the outstanding capital stock of Viewpon Holdings, Inc. from the shareholders of Viewpon in exchange for the issuance of shares common stock of the Company. Please note that in accordance with ASC 805-10 Business Combination and purchase acquisition accounting, the Company initially allocated the consideration to the net tangible and identifiable intangible assets, based on their estimated fair values as of the date of acquisition. The Company recognized a gain of $173,642 as a result of the acquisition. The gain represents the excess of the fair value of the underlying net tangible and intangible assets over the purchase price. The listed totals are preliminary totals and the Company is in process of hiring an evaluation specialist to evaluate all of the intangible assets of Viewpon and Sideshow Entertainment that the Company acquired. The result of the review and determination of the evaluation specialist engagement of the intangible assets, which may include television shows, digital media networks, and audiovisual material, may or may not increase this total gain.
July, 2014. As stated earlier, the Company received notification that the SEC completed its review of its Form 10 filings and 10-K annual report. This is viewed this positively as it relates to streamlining any future filings. The Company also began the steps regarding Viewpon's digital media expansion to the Northeast and Southeast States.
August, 2014. The Company announced the planned expansion of Viewpon into the Connecticut market. The expansion of Viewpon to Connecticut enhances our digital media offerings including digital video commercials, digital customer reviews and on-line marketing services including mobile marketing, social media marketing and website design. Viewpon is planning to be in New Haven and operate statewide across Connecticut. Sideshow Entertainment will produce TV shows in connection with Viewpon to promote small businesses across Connecticut.
The Company announced the planned expansion of Viewpon into the New Jersey market. Viewpon is planning the initial launch in Northern New Jersey and then operate statewide across New Jersey including Trenton, Newark, Jersey City and Atlantic City. Sideshow Entertainment will produce TV shows in connection with Viewpon to promote small businesses across New Jersey.
The Company filed its 10-Q for June 30, 2014 that includes the VHI acquisition.
September, 2014. The Company engaged an investment bank firm to raise capital as its placement agent and financial advisor in connection with the VHI transaction. This should validate our business plan and may accelerate our growth and expansion strategy. However, as is normal and customary conditions to the engagement, the Company may or may not be successful in this endeavor due to the various terms and conditions which may or may not be reasonable or attainable.
November, 2014. The Company announced the planned expansion of Viewpon into the New York market. Viewpon is planning the initial launch in Westchester County, New York during the First Quarter 2015 and then operate statewide across New York including New York City, Long Island, Westchester, Rockland and Putnam Counties. Sideshow Entertainment will produce TV shows in connection with Viewpon to promote small businesses across New York.
The Company announced the planned expansion of Viewpon into the Florida market. Viewpon is planning the initial launch in Miami and will seek to expand across Southern Florida from Fort Lauderdale through West Palm Beach. Further expansion is planned for Fort Myers, Tampa, and Orlando areas. Sideshow Entertainment will produce TV shows in connection with Viewpon to promote small businesses across Florida.
The Company filed its 10-Q for September 30, 2014.
December, 2014. The Company decided to initiate the steps regarding a potential name change of the company during year 2015. Although not finalized, the proposed name change is forecasted to be "Beta Management Group, Inc." Please note that the proposed name change would be subject to approvals of FINRA and all other regulatory agencies and may require new CUSIP information.
The company also has decided to create new subsidiaries to seek potential acquisition targets concentrating on healthcare sector and cash flow positive logistical businesses. The Company plans to establish these new subsidiaries during year 2015 and forecasts that cash flow businesses will support its operations and enhance shareholder value.
DIGITAL MEDIA PLATFORM:
The Company's expansion platform is a digital media version where digital commercials are produced, digital coupons are purchased and digital reviews are sent virally via social media. The Company is a marketing and media company that provides digital media marketing, social and mobile marketing, strategic media planning and other specialty communications services. The Company provides digital, mobile, social and video content productions to promote small businesses to their clients by providing digital coupons as interactive experiences between clients and the small business community.
The Company's expansion and revenue strategy is from producing digital videos commercials for small businesses across various sectors including retail, health, wellness, consulting and other specific communities. These digital media videos commercials serves small businesses such as boutiques, salons, restaurants, doctors, dentists, accountants, hotels, travel services, auto mechanics, realtors and many more small businesses. Small businesses using our digital media network to create interactive videos commercials to engage with current and potential consumers at the critical moment of decisions to spend their money.
The Company determined the most expedient way to increase users, increase revenues and accelerate the Company's expansion were to replicate Viewpon broadcast model but adjust it in order to generate increased revenues and increase users. This is due to Viewpon having produced approximately 370 television shows and over 5,000 digital media network broadcasts regarding the small business and having approximately 20,000 registered users.
The Company's adjusted business model revolves around generating revenues from several critical areas:
1. Revenues to be generated from small businesses to produce digital video commercials.
2. Revenues to be generated from clients who view digital commercials and purchase products or services.
3. Revenues to be generated from new users who view client online "reviews" of their experiences.
4. Revenues to be generated from sponsorships, advertising and potential data analysis from TV shows.
5. Revenues to be generated from digital tax credits on qualified expenses offered on selective states.
Below is a summary of the generated revenues from several critical areas:
1. Revenues to be generated from small businesses to produce digital video commercials.
The Company is forecasting to produce digital video commercials for small businesses for a fee in the range of $2,400 to $3,000, which is to be allocated over 12 months (range of $200 to $250 per month) to ease cash flow concerns of our small business clients. Please note that this pricing is may be revised based on financial factors of the potential clients. The digital commercials are produced in a similar format so the expense associated to produce videos is effective costs for our clients. The goal of the company's expansion in order to produce between 3,000 to 4,000 digital videos per state that are launched in, and then grow that client base with new and repeat clients. The Company would seek to produce updated videos and provide social media services for our clients. This method forecasts to generate revenues from new businesses as well as annuitized revenues from existing small businesses.
The small business clients receive the following benefits:
- Digital commercials to be installed on their website. This digital video is a tangible asset that is easily identified.
- Digital commercials will be shown twice on the TV shows that Viewpon airs on local TV stations.
- Digital commercials will be shown on our Viewpon Digital Network for our users to save on coupon purchases.
- Digital online reviews that clients submit via social media leading to referrals to grow small businesses.
2. Revenues to be generated from clients who view digital commercials and purchase products or services.
The Company is forecasting generating revenues of 20%-25% from digital coupon purchased and the balance of the revenues from the digital coupon purchased to be forwarded to small businesses.
The client users receive the following benefits:
- Savings receive via digital coupons. (Example: $200 small business value discounted to $100 coupon sale).
- Clients submit online reviews via social media as referrals and receive a $1 coupon for each viewed review.
- Example: 50 new views on the client online reviews may produce $50 "coupon" from the small businesses.
- Example: Clients with most reviews are selected to appear on Viewpon TV show that airs on local TV stations.
- Example: Clients with most annual reviews may receive $500 "coupon" from Company. (Yet to be determined).
3. Revenues to be generated from new users who view client online "reviews" of their experiences.
The Company is forecasting additional generated revenues of 20%-25% of digital coupon purchased from the referrals from the client online reviews and the balance from the digital coupon purchased forwarded to small businesses. The Company is forecasting that the client online review platform may increase total users to over 1 million in each state Viewpon platform launches. This is due to the online review providing a monetary value or "reward" via the digital coupons received and providing instant "celebrity" status via reviews going viral. Additionally, the Company is forecasting to launch social media streaming review Viewpon APP. The Viewpon APP should accelerate growth of our users as an attractive compliment to small businesses and a total digital viewer network for our digital TV shows. The Company is forecasting to develop and launch the APP in year 2015 to increase our own "Viewers / Users" platform via this model.
4. Revenues to be generated from sponsorships, advertising and potential data analysis from TV shows.
The Company is forecasting to buy air-time to air the Viewpon TV show on local TV stations similar to the Viewpon model that previously produced approximately 370 television shows. The cost to purchase 30 minute time segments are reasonably priced per show but can be reduced if the time is purchased in volume. Approximately 20 small businesses would be included in the 30 minute Viewpon TV show. Since production costs may be reduced due to previously produced content, this platform forecasts to be profitable, to increase users and to attract more small businesses.
The Company, through Sideshow Entertainment, is forecasting to executive produce internet television shows in shorter 3-5 minute segments if there is additional value in the opportunity from the small businesses. These shows have the opportunity to go viral and would be a potential synergy to increase users, which increases revenues and valuations. Incremental revenues would be generated from advertiser videos before downloading shows. The Company may be able to launch the shows to our users via the streaming APP model above. This should accelerate increasing users that are attractive to small businesses and viewers for our digital TV shows.
5. Revenues to be generated from digital tax credits on qualified expenses offered on selective states.
The Company is forecasting to take advantage of digital tax credits for film, television and digital productions in selective states. The digital tax credits are based on qualified expenses that would generate a "credit" that could be transferred to third party for a cash payment. Please note this would not be considered top line revenues but classified as non-operating income, but still generates cash and pretax profits. Not every state provides tax credits so expansion is targeted to states that provide the credits. Several states have programs where tax credits are up to 20% to 30% of qualified expenses. This credit can be transferred for cash at a discount to the credit value to generate additional value to our shareholders.
EXPANSION:
The Company has presented the digital media platform to Economic Development Agencies in Connecticut, New Jersey and New York. Our chief executive officer has previously received offers of support from Connecticut, New Jersey and New York as our digital media platform is forecasted to help in job creation, economic growth and generate tax revenues for these state budgets. The additional expansion into the below markets is critically important as the positive news and support from the Economic Development Agencies regarding the job creation and economic growth may accelerate engagements of the small businesses, airing of the Viewpon TV shows, the launch the digital on-line series and increasing total users via the social media reviews platform.
The Company's expansion strategy is based on the below targeted Combined Statistical Areas ("CSA") reaching a total of almost 57 million persons that are listed as 1st, 2nd, 5th and 10th in the top 10 populated areas. The Company may replicate this digital media platform with Economic Development Agencies in other CSA’S listed below to assist with job creation and economic growth and generate tax revenues for state budgets.
1. Viewpon, located and operated in San Francisco, California, has previously produced approximately 378 television shows regarding their digital platform in the San Jose-San Francisco-Oakland, CA area. The San Jose-San Francisco-Oakland, CA Combined Statistical Area ("CSA") is a 12-county CSA designated by the United States Office of Management and Budget in Northern California that includes the San Francisco Bay Area. The CSA is more extensive than the popular local definition of the Bay Area, which consists of only the nine counties bordering San Francisco and San Pablo Bays: Alameda, Contra Costa, Marin, Napa, San Mateo, San Francisco, Santa Clara, Solano, and Sonoma. The CSA also includes the three counties of San Joaquin, Santa Cruz, and San Benito that do not border San Francisco or San Pablo Bay, but are economically tied to the nine counties that do. The San Jose-San Francisco-Oakland CSA ranks as the 5th most populous area of the United States with a total population of 8,469,854 as of 2013.
2. The Company primary expansion strategy is to launch Viewpon from California into Northeast states in a private/public partnership to help solve their job creation and economic growth for small business in the NY-NJ-CT Tri-State Area. The New York-Newark, NY-NJ-CT-PA CSA had an estimated population of 23,484,225 as of 2013. About 1 out of every 15 Americans resides in this region, which includes seven additional counties in New York, New Jersey, and Connecticut. This area, less the Pennsylvania portion, is often referred to as the Tri-State Area. The Company has already presented to Economic Development Agencies in Connecticut and New Jersey and has also held discussions with New York.
3. The Company next stage of the expansion strategy is to launch Viewpon from Northern California into the Los Angeles-Long Beach, CA CSA. The Los Angeles-Long Beach CSA consists of the entirety of the counties of Los Angeles, Long Beach, Orange, Ventura, San Bernardino, and Riverside, including the sparsely developed eastern portions of the latter two that are not included in the regional definition of Greater Los Angeles. The Los Angeles-Long Beach, CA CSA ranks as the 2nd most populous metropolitan area of the United States with a total population of 18,351,929 as of 2013 and it is home to nearly half of all California residents.
4. The Company next stage of the expansion strategy is to launch Viewpon from Northeast to Southeast into the Miami-Fort Lauderdale-West Palm Beach, Port St. Lucie, FL CSA. Miami-Fort Lauderdale-West Palm Beach, Port St. Lucie, FL CSA comprises of Miami-Dade, Broward, Palm Beach counties-Florida's three most populous counties-with principal cities including Miami, Fort Lauderdale Pompano Beach, West Palm Beach, and Boca Raton. Miami-Fort Lauderdale-West Palm Beach, Port St. Lucie, FL CSA ranks as the 10th most populous metropolitan area of the United States with a total population of 6,447,610 as of 2013 and it is home to nearly 1 in 3 of all Florida residents. Another important factor is that nearly 2 in 3 of all Floridians were born in another state, which is important in the digital review referral programs.
LEADING COMPANIES IN THE MARKET SECTOR:
The Company's business model may position itself as a dynamic marketing or media company with rapid growth in similar aspects to the initial stages of growth of leading companies below which does not include the larger streaming companies that develop their own original content. The Company forecasts that online digital reviews and digital TV platform may generate users that may increase our value our shareholders which may include these sector companies at a point in the future. The leading companies in coupon sector and small business review sector are as follows:
VIDEOS ABOUT VIEWPON:
Attached are links to several videos showing how Viewpon works and commercials regarding our expansion to help job creation and economic growth for small business across the NY-NJ-CT Tri-State Area that has an estimated population of 23.5 Million to market the platform.
VIDEOS ABOUT SIDESHOW ENTERTAINMENT TV SHOWS:
Also attached are Sideshow Entertainment videos as examples of streaming TV shows to produce to promote our small businesses clients.
SUMMARY & YEAR 2015:
This remains an exciting time to be in the media and marketing sector. While the macro business environment remains uncertain in some markets, the opportunity in high-growth regions and in new technologies is significant and dynamic. The strength from the Viewpon and Sideshow Entertainment businesses should provide top line revenue growth and increased users and compared to this time a year ago, this should put us in position to deliver growth and enhanced shareholder value.
As always, thank you very much for your support.
Best regards,
Jim Ennis
Chief Executive Officer
Forward-Looking Statements/Disclaimer
Information in this document constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "anticipate," "estimate," "project," "intend," "expect," "should," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause The Company actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in The Company Filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to The Company herein are expressly qualified in their entirety by the above-mentioned cautionary statement. The Company disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law. This press release may also contain forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including the risk we may encounter delays or other difficulties in ramping-up production of our new products; the rapid development of new technology and competing products that may impair demand or render the Company's products and services obsolete; and other factors discussed in the Company's filings with the Securities and Exchange Commission, including its report on Form 10 and Form 10-K for the year ended December 31, 2013 as well as all other subsequent filings.
CONTACT:
Financial Communications Contact
Jim Ennis
Beta Music Group, Inc.
7100 Biscayne Blvd
Miami, FL 33138
212.249.4900
SOURCE: Beta Music Group, Inc.