LOS ANGELES--(BUSINESS WIRE)--June
10, 1999
Historic Advance Cements Virgin's
Leadership Position Providing
Entertainment Content to Consumers
Virgin Entertainment Group
Thursday announced an agreement with RedDotNet, a Digital on
Demand company, that will enable Virgin Megastore customers to
download music and create custom CDs, DVDs, and MiniDiscs
in-store, a revolutionary development heralding a new wave of
music retailing.
The first unveiling of this
historic development will be at the chain's newest Megastore, set
to open in Columbus, Ohio next month.
The move is part of the chain's
Megastore 2010 initiative, a well-guarded effort that promises to
integrate a variety of new technology and retail concepts into
Virgin's next-generation location-based store strategy. It follows
the recent launch of Virgin Megastore Online at virginmega.com,
the retailer's quickly growing e-commerce site.
Under the terms of the agreement,
RedDotNet will distribute major label and on-line content over its
high-speed broadband network and secure server system to Virgin
Megastores, where digital kiosks will enable customers to find,
preview, and select music for purchase. Once selected, the music
can be pressed as a CD, DVD, or MiniDisc, or digitally uploaded to
an SDMI-compatible memory device. The product is accompanied by
full-color liner notes, cover, and CD art that is identical to
traditionally manufactured product. As part of the agreement,
Virgin will become a shareholder in Digital on Demand, RedDotNet's
parent company.
RedDotNet and Sony Music
Entertainment recently announced an agreement for digital
distribution of Sony Music albums over the Red Dot Network. It is
expected that agreements with other labels will follow, benefiting
Virgin Megastore customers continent-wide.
"Virgin's relationship with
RedDotNet is a further step in our ongoing effort to shape the
future of digital entertainment content delivery for the benefit
of all consumers" said Russ Pillar, Virgin Entertainment Group's
President and Chief Executive Officer. "We're excited about the
promise this and other new Megastore 2010 initiatives hold for all
Megastore customers."
"We're delighted to be chosen as
the first digital technology partner for the Virgin Megastores, a
retailer renowned for its focus on creating great consumer
experiences," said Scott Smith, President of RedDotNet. "Our
technology fits perfectly into their vision for the online-enabled
entertainment content retailer of the future, Megastore 2010."
About Virgin Entertainment Group
Virgin Entertainment Group
provides consumers with a range of superior entertainment
experiences through a family of integrated Virgin-branded
entertainment retail businesses. The Virgin Megastores, part of
the Virgin Entertainment Group, are "category killer" retailers
of a wide range of entertainment content, including music, books,
video, software, and related products.
About RedDotNet
RedDotNet, a Digital On-Demand
company, is a leading distributor of digital entertainment content
over its proprietary Red Dot Network into retail sales
environments. System installations offer point-of-sale access to
new varieties of music content and formats. By creating unlimited,
universal digital access, RedDotNet increases the flexibility of
the brick-and-mortar distribution model, allowing content
providers and retailers to adapt faster than ever to changing
technology and consumer demands. Digital On-Demand and RedDotNet
have offices in Carlsbad, Burbank, and San Francisco, Calif. |