Press Release
| FullAudio and The Harry Fox Agency Announce Agreement to License New Digital Music Subscription Service. |
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Agreement with FullAudio Representing over 27,000 Music Publisherss NEW YORK and CHICAGO - April , 2002 - The Harry Fox Agency, Inc. (HFA) and FullAudio announced today that they have reached an agreement on the licensing of musical works for FullAudio's soon to be launched music subscription service. HFA's substantial database of songs will facilitate immediate identification of copyrighted works and enable FullAudio to obtain appropriate licensing from the correct publishers. Under this non-exclusive agreement, FullAudio will have access to every musical work authorized by participating publishers to be licensed by HFA, the largest agency in the industry for licensing the reproduction and distribution of musical works. The agreement also allows FullAudio subscribers to transfer tracks from their PCs to portable devices. The FullAudio and HFA agreement is modeled on the terms of the recently reached industry agreement with the Recording Industry Association of America for licensing on-demand streaming and limited downloads offered by Internet music subscription services. "The Harry Fox Agency's goal is to make our publishers' songs available in any digital environment and configuration in which the rights of songwriters and composers are protected," said Gary Churgin, President and CEO of the Harry Fox Agency. "FullAudio has respected these rights from the outset." "We were among the first companies to recognize the importance of music publishers in the digital mix," said Chris Copeland Gladwin, chairman and CEO of FullAudio. "This agreement with the Harry Fox Agency is particularly important to us, as it is the final building block before we launch our service this month with ClearChannel." The FullAudio Subscription Service Model FullAudio is creating a cache-download subscription service platform provided to distribution partners on which they can build the engine for their own co-branded, consumer digital music services. For a monthly fee, the FullAudio subscription platform provides fans with unlimited play of the tracks they choose. Much like the subscription models of cable television, fans will have access to their FullAudio music service only as long as their account is in good standing. Also very much like cable, FullAudio offers varying levels of subscription service, providing fans with competitive pricing options related to the amount of music to which they choose to subscribe. The higher the level of subscription (Gold or Platinum), the more slots consumers are given to fill with their favorite and new music. About The Harry Fox Agency: The Harry Fox Agency, Inc., the licensing subsidiary of The National Music Publishers' Association, provides an information source, clearing house and monitoring service for licensing musical copyrights, and acts as licensing agent for more than 27,000 music publisher principals, who in turn represent the interests of more than 160,000 songwriters. About FullAudio Corporation: FullAudio Corporation provides a secure platform for the digital delivery of intellectual property. This platform is available to distribution partners, who then offer their own branded content services directly to their customers, leveraging existing branding and marketing, customer bases, as well as acquisition, loyalty, and retention skills. Having completed a digital music subscription service platform, FullAudio has developed the software and processes to cover every aspect of content aggregation and delivery, including: content acquisition and management, secure storage and delivery, digital rights management and the infrastructure for efficient distribution. FullAudio provides to its partners all back-office functions including billing, reporting and analysis, and financial services, such as content use reporting. The company believes that music subscriptions will be the first large market created in the digital delivery of intellectual property, due to relatively small file sizes and the consumer demand evidenced by illegal file sharing services. FullAudio looks to expand its subscription service platform into additional digital content markets over the next 2-5 years, including video/movies, video games, software, and books. Founded in April 1999, FullAudio's advisors and investors include Larry Rosen, both founder and CEO of N2K, and co-Founder and CEO of GRP records; Joel Schoenfeld, former general counsel and SVP of BMG Entertainment; Randy Komisar, who helped launch both TiVo and WebTV; Kettle Partners; New Enterprise Associates; and Venture Strategy Partners. FullAudio also has a strategic partnership with Microsoft, storing files in the .wma format, utilizing the Windows Media Player as the primary playback software, and relying on Microsoft Digital Rights Management software. For more on the company, please visit www.fullaudio.com |
