LOS ANGELES (Doc Hollywood Kidz) - Doc Hollywood Kidz will acquire Doc Hollywood Records, it was announced today by DHYK CEO, Steven Saxton. Under the terms of the new arrangement, Doc Hollywood Records will focus on acquiring and releasing soundtracks to high profile films, such as the company's recently released CDs from the film "Hide and Seek" starring Robert De Niro and Dakota Fanning - which reached the #1 Box Office spot, and "The Singing Detective" starring Robert Downey Jr., Mel Gibson, Adrien Brody,
Robin Wright Penn, and Katie Holmes.
Additionally, Doc Hollywood Records will focus on signing and developing highly sought-after pop artists in both traditional signings and joint ventures with third party record labels. Throughout this process, the company will be guided by industry veteran and DHYK consultant Russ Bach, former President of Disney Records Worldwide, DHYK Board Member John Wooler (26-time Grammy nominee), Public Relations specialist Craig Melone, and Director of A&R executive Ricky Rollins.
According to Saxton, the company is currently in negotiations to sign several young new pop artists. Simultaneously, Doc Hollywood Kidz Music will continue to focus on projects targeted towards children aged 9 and under. Doc Hollywood Kidz/Records' releases will be distributed domestically by the company's relationship with Oglio Records/ADA/Warner Music Group and internationally through its relationships with JVC for Japan, and Ulftone/Edel for Europe.
For 2004, the music industry worldwide grabbed $32 billion in sales and the United States' $12 billion industry was a bright spot globally. For the first time this century the sales slide of album sales was reversed as CD sales in the U.S. climbed 1.4% in 2004. Online distribution, independent labels, and music videos are all contributing to the music industry's brighter future. Recent legal actions as well as the growth of outlets such as iTunes, MSN Music, and Sony Connect have made legal downloads a stable and growing aspect of the industry. Legal downloads of just 19.2 million in 2003 grew to 143 million copies in 2004. Sales of digital downloads are expected to rise from $71 million in 2003 to $2.2 billion is 2008.
Seventeen percent of industry sales and an ever larger growing percentage of the Hot 100 are from the cutting edge, Internet-savvy independent labels such as Doc Hollywood Records. The experience and distribution relationships that Doc Hollywood Records brings to Doc Hollywood Kidz' will substantially benefit DHYK in the sales of its core products of records for the estimated $1.6 billion youth and soundtrack market. Youth-oriented films dominate the top ranks of soundtrack market. Music projects such as Disney's Beauty and the Beast soundtrack have gone on to sell well over 10 million units, according to the Recording Institute of America. DHYK plans to follow in their footsteps with all new modern day versions of this widely successful animated musical.
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties.
Although Doc Hollywood Kidz believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.
In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by Doc Hollywood Kidz or any other person that the objective and plans of Doc Hollywood Kidz will be achieved.
