Karaoke Subscription Service Generated $3.28 Million in Sales, 35% Increase Year-Over-Year
Fort Lauderdale, FL, Feb. 27, 2024 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. ("Singing Machine" or "the Company") (NASDAQ: MICS) - the worldwide leader in consumer karaoke products, today announced a significant new milestone in its partnership with leading music, media and technology company, Stingray Group, Inc. ("Stingray"), for their shared karaoke subscription service. For 2023, the Stingray-Singing Machine subscription service generated a record $3.28 million in gross sales, representing a 34.8% increase over the prior calendar year subscription sales. As part of its agreement with Stingray, the Company's profit share is calculated after deducting all costs of goods sold (COGS) and expenses associated with maintaining this service. Consequently, the Company records net sales on music subscription sales at approximately 100% gross margin.
"We are excited to report that subscription sales generated very strong results for the Company in 2023," commented Gary Atkinson, CEO of the Singing Machine. "We launched the first subscription- based music service in a pilot product offered only at Costco for the Christmas of 2021, and we have been very encouraged by the rapid acceptance of this service by consumers as we expanded the product placement in more retail locations globally."
Atkinson added, "I'm pleased with the adoption of our karaoke music subscription service, powered by our strategic partner, Stingray. This milestone in subscription revenue supports our belief that consumers are willing to pay for high quality ad-free karaoke videos and unique karaoke features like turning lead vocals on/off, a companion-app to remotely control your karaoke party, and access to over 100,000 songs across 25 different languages."
"In 2023, approximately 5% of our hardware unit sales included this integrated Wi-Fi streaming music subscription service. In 2024, we see the mix of Wi-Fi streaming products doubling to approximately 10%, led by stronger retail demand for higher-priced, higher-featured karaoke products. With the expansion of our Wi-Fi streaming line, we project our net music subscription sales, which have virtually no COGS or SG&A expenses associated with it, to grow proportionally with the forecasted increase in unit sales," concluded Mr. Atkinson.
About The Singing Machine
The Singing Machine Company, Inc. is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, the Company designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Their portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. The Company also has a new philanthropic initiative, CARE-eoke by Singing Machine, to focus on the social impact of karaoke for children and adults of all ages who would benefit from singing. Their products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
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About Stingray
Stingray (TSX: RAY.A; RAY.B), a global music, media, and technology company, is an industry leader in TV broadcasting, streaming, radio, business services, and advertising. Stingray provides an array of music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, over 100 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-vehicle and on-board infotainment content. Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback. Stingray Advertising is North America's largest retail audio advertising network, delivering digital audio messaging to more than 20,000 major retail locations. Stingray has over 1000 employees worldwide and reaches 540 million consumers in 160 countries. For more information, visit www.stingray.com
