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American Company Spotlight

 

UOMO Media, Inc. Website: Click Here

Information As Of January 30, 2008

Exchange: OTCBB Market Cap: 59.5 Million
Outstanding Shares: 85 Million 52 Low / High: $0.08 / $0.74

Price January 30, 2008: $0.70

UOMO Recent Stock Quote and News: Click Here

'UOMO is successfully implementing its business strategy through four operating divisions: UOMO Publishing, UOMO Recorded Music, UOMO Digital Distribution, and UOMO Talent Management.  This multiple revenue stream approach to the music business is critical to creating and monetizing the dormant value in the current digital new media market.'


Overview

UOMO Media Inc. is a multi channel entertainment company that generates revenues from the strategic acquisition, partnership, creation and production of globally recognized entertainment properties. UOMO acquires, partners with, produces, manages and promotes intellectual media content including rights in music, film, television programming and other related assets, as well as digital assets.

By using a multi-platform approach to the commercial utilization of its entertainment-based intellectual property and digital assets, UOMO is able to leverage the value of existing and well established revenue streams in recorded music, publishing, talent management and distribution through its four operating divisions: UOMO Publishing, UOMO Recorded Music, UOMO Digital Distribution, and UOMO Talent Management.


Investment Highlights

  • The demand for music and entertainment is strong and growing. IFPI estimates the broader music industry was worth $130 BILLION in 2006: music publishing grew to $8 BILLION in 2006, up from $7 BILLION the year before. Digital Music sales doubled to $2 BILLION between 2005 and 2006, and Mobile Music Sales are expected to hit $9.3 BILLION by 2009 (Source: IFPI and Juniper Research).
  • UOMO has an innovative multi-channel business model developed by some of the most knowledgeable minds in the music and entertainment industry, maximizing revenue opportunities and balancing risk. By creating brands around its talent via '360 deals' UOMO consolidates revenue traditionally dispersed amongst several rights holders.
  • UOMO Media has assembled a highly talented management team that collectively has many decades of experience in the entertainment industry. All have excelled in their previous positions and have in-depth operational and managerial expertise. As senior executives with a range of labels, they have worked with artists ranging from Public Enemy and Pete Townsend (The Who) through to Nine Inch Nails, Outkast, New Order, Paul Oakenfeld and many, many others.
  • UOMO Media Inc. has deals with some of the very hottest and most profitable artists out there, including award winning writers and producers that have generated hits for Rihanna, Britney Spears, Madonna and Janet Jackson to name a few.
  • UOMO's international network is exceptionally wide and deep. Combining the global appeal of American music (from urban to western and beyond) with UOMO's international marketing and promotion skills is a key element of the company's strategy.


Executive Summary

By creating brands around its acquired talent via “360 deals” UOMO consolidates revenues
traditionally dispersed among several rights holders. Ownership, coupled with the ability to generate revenues from broader entertainment content rights, places UOMO at the leading edge of the new revenue paradigm in the entertainment industry. The International Federation of the Phonographic Industry (IFPI) estimated that the broader music recording industry was worth approximately US$130 billion in 2006. Although the market is robust, incumbent companies are not reaping that upside because their failing model emphasizes revenues primarily from record sales. Incumbent companies are now forced to adapt their huge businesses which are not well-suited to the era of digital distribution.

UOMO is successfully implementing its business strategy through four operating divisions: UOMO Publishing, UOMO Recorded Music, UOMO Digital Distribution, and UOMO Talent Management.
Each operating division is designed to capture complimentary segments of recurring revenue. This multiple revenue stream approach to the music business is critical to creating and monetizing the dormant value in the current digital new media market.

With UOMO's international experience and infrastructure, UOMO has a competitive advantage in
the global new media arena. Understanding the nuances of international deal making allows UOMO to efficiently articulate its value proposition to stakeholders in major market's globally. It also allows UOMO to rapidly enter the massive emerging markets in China, India, Eastern Europe and South America. 

UOMO's management team has worked with some of the best-known and profitable music industry talent in the world. This provides UOMO with the access and personal relationships needed to further its business objectives at the highest levels of the industry. UOMO's established relationships globally allow it to create value for music producers, songwriters, and recording artists while maximizing internal profits.

UOMO will leverage its position as a vertically integrated music and entertainment based intellectual property company into a multi-platform new media company by addressing the needs of its stakeholders and consumers across all media though the implementation of a business model
that transgresses the old marketplace.


UOMO's Recurring Revenue Model

UOMO's model provides for multiple, recurring revenue streams that are derived from a number
of segments within the entertainment industry including:

Copyright Assets

Revenues are derived from the licensing of UOMO owned copyrights or published music through use of rights in films, television programming, written works, commercials, radio play, music videos and live performances as examples. Licensing also includes the use of copyrights on “pressed albums” or recorded digital versions.

Recorded Music Assets

Revenues are derived from the licensing of UOMO owned master recordings through use of rights
in films, television programming, written works, commercials, radio play, music videos and live
performances as examples.  Licensing also includes the use of copyrights on “pressed albums”
or recorded digital versions.

Talent Management

Revenues are derived from fees received for management of artists and producers by developing and implementing revenue enhancement opportunities related to live performances/ touring, merchandising, sponsorship/ endorsement, licensing to film/TV/video games as well as the production and sale
of recorded music.

Multiple Rights/360 Contract

UOMO works with artists from the ground up in deals known as “multiple rights” or the “360° contract”. Instead of settling for a cut of CD sales, UOMO sources and structures broader contracts that encompass live music, merchandise and endorsement deals which its highly experienced and proven management team manages.


Market Overview & Opportunity

Music Publishing Market

According to IFPI, global revenues for music publishing were US$8 billion in 2006, up from US$7 billion the year before, with revenues being generated from new channels such as ring tones as well as traditional channels. UOMO expects this channel to continue to increase in importance.

There are several different revenue streams that a music publisher is typically involved in, including:

1. Mechanical Royalties, the reproduction of songs on CD, vinyl, digital download, and other devices
sold on a "per unit" basis. With the growth of digital ring tones, and video games, this is becoming increasingly important.

2. Sync' Licenses - the song is used in TV or film.

3. Performance Licenses, where the song is broadcast over the radio or played live. This is also increasing in importance.

  • The amount of money a record company must pay for a mechanical license (the "statutory rate") is generally set by the Copyright Royalty Tribunal.  The current statutory rate through December 31, 2007 is $.091 per song. This means that a single song can generate up to $.91 cents for every 10 records sold, although the amount paid is often lower for artists that are still establishing themselves.
  • Although music pirating is also an issue for music publishers, they have a wider range of income sources (Mechanical, Sync and Performance licenses) than record companies, and so are better insulated from the downturn in recorded music sales. Also, the ongoing costs of maintaining a copyright are negligible so it has a very low marginal cost.
  • The big four record companies (Warner Music Group, EMI, Sony BMG, and Universal Music Group) all have associated music publishing divisions and there are many smaller music publishing companies.

Recorded Music Market

Sales of physical recordings are in decline.  According to RIAA, in the US, for 2006, sales of physical recordings were US$ 9 billion, down from US$ 10.4 billion in 2005, a drop of 13.6%, and this trend will likely continue.

Although there are many small record labels operating, the backbone of the recorded music
sector is the majors. As of 2005, the "big four" music groups — Warner Music Group, EMI, Sony
BMG, and Universal Music Group — control about 70% of the world music market, and about 80%
of the United States music market. (Source: Wikipedia).  They use a network of either fully or partially owned sub-labels and distribution networks which allows them to operate in many different music genres and regions.

The big four are under the most pressure from the changing environment because they have the largest overheads as a result of developing their business models in conditions that no longer apply. This is creating opportunities for the next generation of record companies with lower overheads which are able to move quickly in to new market niches as they open up.

Digital Music Market

Digital music revenues have been growing exponentially. Digital music revenues doubled in 2006 to about US$2 billion – around 10 per cent of total sales. By 2010 IFPI expects at least one quarter of all music sales worldwide to be digital. (Source: IFPI). Huawei estimates revenues from digital music were about US$2.8 billion in 2006. 

In the US, digital music formats continued to grow, with 586 million digital singles downloaded in 2006, representing a 60% increase from 2005, and 28 million albums downloaded, a 103% increase from 2005. (Source: IFPI)

iTunes is estimated to have about 70% of the market for digital music in both the US and Europe . This is expected to cause a backlash, with the majors (Sony BMG, Warner and EMI) seeking to bolster competitors to iTunes.

Revenues from various mobile formats grew 84% to $775 million and subscription service revenues
were $206 million, a 38% increase versus from 2005. The growth in digital revenues partially compensated for the decline in physical sales. (Source: IFPI). The mobile channel is increasing
in importance.

In the US market, digital music sales currently only account for 10.2% of the total revenues generated by recorded music sales. The remaining 89.8% is generated through the sale of CDs and vinyl, together called "physical recordings".

Mobile Music Market

“Global Mobile content and services market to top $150 Billion by 2011” source Informa Media

The increasing popularity of full-track downloads and ring-back tones will help push mobile music
revenues to more than $9.3 billion by 2009, according to a new report from Juniper Research.

While the downloads of mobile ringtones and realtones will comprise the bulk of revenues ($4.8 billion), the market for full-track downloads is expected to increase from just $20 million in 2004 to nearly $1.8 billion in 2009, while ring-back tones - already generating substantial revenues in Asia - should be worth $2.7 billion worldwide by the end of the decade.

Talent Management

UOMO Talent Management (TM) encompasses developing the extended business opportunities
created from the artist as a "brand" instead of simply a producer of master recordings. A typical
arrangement would be where a manager develops and implements a business strategy for an artist, in return for a portion of the revenues generated by that artist. These types of deals are called “360” deals.

“360” deals, where UOMO TM helps the artist to develop multiple revenue streams ranging from
the sale of recorded music through to arranging endorsement deals and movie appearances, are
becoming more common.

The market for management services is fragmented because artists acquire their managers in a variety of ways. Often when an artist is successful they will continue to work with the same manager from the early days of their career, before they became established. Individual managers with good reputations and networks are often approached directly by artists seeking to work with them. UOMO is in this category.



Management

CAMARA ALFORD – CEO and Chairman

Mr. Camara Alford is a long-time music industry executive. Mr. Alford is responsible for the strategic
direction and global operations of the Company. Mr. Alford has an in-depth understanding of the
creative and business aspects of the global entertainment industry.

Previously, Mr. Alford was CEO and owner of his own firm, which had a label imprint venture with
Sony BMG. Through this company he also managed international award winning artists and producers, delivering singles for Britney Spears, Rihanna, Canadian Idol, Robyn, Shawn Desman and many others. The relationship with Sony BMG produced gold and platinum albums. Mr. Alford's music industry experience dates back to working with Public Enemy in the 1980's. He also worked closely with Dallas Austin in building Rowdy Records and has served as A&R for widely respected entertainment attorney Joel Katz's joint venture with RCA Records.

JUEANE THIESSEN, CGA – CFO and Director

A results-oriented professional with over 14 years Finance experience in Marketing, Real Estate,
Software, Property Development, Property Management and Public Practice industries, Ms. Thiessen contributes to the achievement of strategic business goals through demonstrated strength in budgeting, forecasting, planning and analysis. Ms. Thiessen has managed marketing budgets for clients such as Coke, Starbucks, Sony Ericsson, Kraft, Kellogg, ING, and Daimler Chrysler.

PETER COQUILLARD - Managing Director, Publishing

A 17-year veteran in the US music industry. He has worked most of his year with Windswept Pacific
signing catalogues and working with artists from industry icon Pete Townshend (The Who and Townshend solo Catalogues) to alternative act Nine Inch Nails. He took a turn at managing the UK artist Tricky (3 million sold worldwide) and partnering on a production team that put together the Area One music festival, a 17 city tour featuring Outkast, Moby, New Order, The Roots, Incubus, Paul Oakenfold, etc. The tour was sponsored by Intel, Ford, Coca Cola and co-produced by SFX/Clear channel. In 2002, Mr. Coquillard returned to publishing, working for the Windswept LV Hitco, which is the company co-owned by the Chairman of Island Def Jam Records, Antonio "LA" Reid. At Windswept, Mr. Coquillard's responsibilities have been developing the Pop/Rock side of the roster, putting together deals with Murlyn Music in Stockholm (Britney Spears, Madonna, Jennifer Lopez, Celine Dion), Nettwerk Management (Dido, Avril Lavigne, Sarah McLaughlin), Stuart Matthewman (Sade, Maxwell), Toby Lightman, an artist on Atlantic, Autovien on Columbia, Silya on Columbia and Ina on TVT Records. He has recently been tapped to help grow the Nettwerk One Publishing division.
 


Contacts

Investor Relations Contact:

Haynes Capital Corp.
Phone: (646) 808-0685


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect UOMO Media, Inc. current expectations about its future results, performance, prospects and opportunities. UOMO Media, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause UOMO Media, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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