Thursday June 10, 2:47 pm Eastern Time
Company Press Release
Virgin Megastores First to Offer In-Store On-line Digital Music Downloading and Custom CD, DVD, and MiniDisc Creation and Fulfillment
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
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
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.
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.
Pamela Thompson, 310/397-0050
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