MINNEAPOLIS--(BUSINESS WIRE)--Oct. 15, 1996--With a strategy to drive Internet users into participating retail stores, NetRadio Network and Navarre Corporation today announced an exclusive partnership with Musicland Stores Corporation to launch an integrated Internet marketing program.
The alliance marks the first time that a traditional national music retailer has joined forces with an Internet content provider. The program offers prime positioning for artist releases on an end cap that is headed: "As Heard On NetRadio Network," and which will be displayed at most Sam Goody, Musicland, Media Play, and On Cue retail stores across the country. Record labels will participate by sponsoring 13 titles on the NetRadio Network end cap for 60-day intervals. Musicland Stores Corporation and Navarre will jointly make title selections. Navarre will ship the initial quantities required for each store.
"We are thrilled to have Musicland as the exclusive national retail partner in this program," said Eric Paulson, CEO, Navarre Corporation. "The labels are extremely fired up about this campaign. In fact, we are in an oversold condition for the initial sales period. Then, once the titles are selected, we will be rotating 50% of them each month so that the consumer always has something new to hear and buy."
"An affiliation with NetRadio Network provides Musicland stores with a high-traffic Internet site made up of people who, by their actions, prove they are definitely interested in acquiring music," said Gilbert L. Wachsman-Vice Chairman of Musicland Stores Corporation. "The link between NetRadio, Navarre, and Musicland brings a new level of definition and potential to marketing on the Internet."
In addition to providing price and position for featured artist releases in hundreds of retail outlets, NetRadio Network and Navarre will be offering record labels a comprehensive Internet marketing strategy which is delivered to music consumers on a one-to-one basis, depending on their profile. Included in the program for titles featured on the end cap are: digital coupons for users to download, the posting of banners and advertising text on the "NetRadio Central" home page, and the creation of custom radio spots and Web pages on specific artists.
"NetRadio's goal is to take a leadership role in music marketing on the Internet," said Robert Griggs, CEO, NetRadio Network. "Together with Navarre, we have created this program to offer the retail music industry a one-stop shop for all their Internet marketing needs."
"The potential opportunity for NetRadio and Navarre to create an exciting marketing campaign with traditional music retailers is viewed very positively," said Jim Caparro, President of Polygram Group Distribution (PGD). "Generating incremental awareness, visibility and sales benefits the entire industry."
Based in Minneapolis, Musicland Stores Corporation is the leading specialty retailer of pre-recorded home entertainment products in the United States. As of June 30, 1996, the company operated 1,479 retail stores in 49 states, the United Kingdom, Puerto Rico, and the Virgin Islands under the names Media Play, On Cue, Suncoast Motion Picture Company, and Sam Goody/Musicland.
Navarre Corporation (Nasdaq: NAVR) is a leading content provider to the Internet and publishes and distributes music software and interactive CD-ROM products.
NetRadio Network is the world's first 24-hours-a-day, 7-days-a-week radio network on the Internet. Since its debut on Nov. 1, 1995, the NetRadio Network Web site (www.netradio.net) has been in the top 1% of busiest Web sites, with listeners from over 90 countries. NetRadio Network has earned awards from ten different organizations, including Point Survey's Top 5% of the Web Award.
CONTACT: Cassandra Harris/Eric Litchfield
TSI
212/696-2000
charris@tsipr.com
elitchfield@tsipr.com
or
Marcia Appel
Musicland Group
612/931-8000
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