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Thursday, August 26, 2004
Record Companies Unveil New Music Product That Combines CD and DVD Content on One Disc!

Consortium of record labels, including EMI Music, Sony BMG Music Entertainment, Universal Music Group, Warner Music Group and 5.1 Entertainment Group/Silverline Records, today announced plans to introduce DualDisc, a new music product.

DualDisc is a two-sided disc made up of a CD on one side and a DVD on the other. In addition to a full album on the CD side, the DVD side provides the full album in enhanced sound (such as Surround Sound and/or DVD-Audio or LPCM stereo), and also includes a wide range of special features such as music videos, interviews, photo galleries, web links, concert footage and lyrics.

"DualDisc represents a dramatic expansion of the music entertainment experience," commented Andrew Lack, CEO, Sony BMG Music Entertainment. "By combining video, surround sound and web connectivity in a single disc, we are presenting our artists with a broader palette to express their creative vision, while at the same time giving consumers what they told us they want-greater value driven by unique content that brings them closer to the artist.

We're confident that this ground-breaking new initiative will help to re- energize traditional music retail."

"We are delighted to be offering the first in a series of DualDisc titles," stated Doug Morris, Chairman and CEO of Universal Music Group. "By combining music, video, interactivity and portability in a single disc, DualDisc will add an exciting new dimension to the consumer's musical experience."

"DualDisc is an exciting new product that's limited only by the artist's imagination. We're confident that the ubiquity of CDs combined with the multimedia experience of DVDs on a single disc provides consumers an entirely new level of musical enjoyment," said Edgar Bronfman, Jr., Chairman and CEO, Warner Music Group.

Although DualDisc creates a new music experience, it does not require new equipment. DualDisc is compatible with nearly any device that can currently play a CD or a DVD-whether a home stereo system, portable disc player, car stereo, game console or PC.

DualDisc has already received an impressive response from consumers in test markets conducted earlier this year. Those who purchased the DualDisc said it is a compelling new product which met or exceeded their expectations.

In addition, 90 percent of consumers said they would recommend DualDisc to a friend and 82 percent said they are satisfied or extremely satisfied with DualDisc.

"DualDisc is a compelling new product; a proposition that we believe will help drive sales," said Don Van Cleave, President of the Coalition of Independent Music Stores.

Artists are also singing the praises of DualDisc because it allows them to create in exciting new ways. Five For Fighting Lead Singer John Ondrasik said, "For those who are interested in the thoughts behind the music and its making, the DualDisc is a unique window into 'The Battle For Everything' and allows me to be able to present my album musically and visually, all on one disc." Five for Fighting's "The Battle for Everything," currently available on CD, will be one of the albums released on DualDisc.

"Dual Disc opens a new, exciting creative dimension for artists to express themselves and connect with fans. It's an entertainment-packed product and is a big step in our effort to give fans music whenever, however and wherever they want it," said David Munns, Chairman and CEO EMI Music North America.

DualDiscs will be available beginning in October 2004. All of the participating record labels plan to offer an increasing number of DualDisc products, including a range of frontline and catalog releases. The labels made today's announcement to retailers at the annual convention for the National Association of Recording Merchandisers (NARM) taking place in San Diego.

Additional Comments About DualDisc

"Our labels, artists and their management are extremely excited about the introduction of DualDisc. The video component allows us to include unique, intimate making-of and behind-the-scenes video footage, expanding the relationships between fans and artists," commented Don Ienner, President, Sony Music U.S. "This is a great move for artists, fans and retailers alike, and we look forward to rolling out new and innovative releases that take full advantage of DualDisc's expanded capabilities."

"DualDisc is an exciting product for independent labels. It provides a window into new and up and coming artists for whom getting close to their fans is a critical success factor. DualDisc also provides a means to invigorate classic titles with fresh and compelling content," said John Trickett, Chairman and CEO, 5.1 Entertainment Group/Silverline Records

"DualDisc is an exciting new product and may be the perfect solution for the music business as we seek to add value to our product and become more competitive with the other segments of home entertainment," said Randy Miller, Executive Vice President, Virgin Records America, Inc.

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