BURNLOUNGE ENTERTAINMENT GROUP is a music & entertainment company founded by Alex Arnold, Ryan Dadd & Steven Murray. Launched in mid-October 2005 out of Los Angeles, California with additional corporate offices in New York City, Burnlounge intends to become the most powerful entertainment-based affiliate program in the world. With passion for the music industry, Alex Arnold began representing independent artists with hopes of helping them sign with a major record label. He quickly learned that without a means of distribution in the music industry, despite how talented and how well funded, most independent artists would go nowhere. Enter Burnlounge! Combining his experience and proven track record with direct sales, Alex developed a concept that would mesh the power and viral growth of a business relationship model with the music and entertainment industry. This model would allow independent artists to promote their music in a viral community of people with common interests and musical tastes and earn income. The model would put the music and entertainment industry into the hands of the true fans - the consumers. After sharing his vision with music industry "heavyweights" and learning the concept had traction in the music industry, Alex moved forward and launched Burnlounge in mid-October 2005. Through the Burnlounge proprietary software, music fans can use simple point-and-click technology to build their own fully functioning digital download store. These stores can not only sell the music selected to be featured, but also allow visitors access to a vast catalog of titles from all of the major labels and hundreds of independents. By allowing fans to profit from recommending their favorite music, Burnlounge believes they can revolutionize the way entertainment products are marketed. Burnlounge is designed to provide a fun and exciting experience whether you're looking for a part-time hobby or a serious business. Burnlounge is built around the belief that there is nothing more powerful than a personal referral. When someone you trust recommends something, you are more likely to value that recommendation. People already do this with music they love everyday. That is what's exciting. MUSIC & ENTERTAINMENT is perhaps the one medium that connects more people than any other. By allowing highly motivated fans to profit from recommending music they love, books they thought were a good read, or a can't miss movie, Burnlounge can create a powerful sales engine for music and entertainment products that never before existed. *Burnlounge currently offers music, but further entertainment products such as movies, ring tones, logo wear, TV shows, audio books, concert tickets, MP3 players, etc... will become available through your Burnlounge store. WHERE BURNLOUNGE IS NOW:TECHNOLOGYAfter nearly 3 years of development, Burnlounge has released the Beta version of its service. The Burnlounge technology platform is built on 4 separate systems:
The complexity of the individual systems is matched only by the complexity of linking them together. The Burnlounge development teams worked tirelessly to design and implement the initial launch of the current technology. They are now focused on refining and improving the services as they analyze the feedback from the Beta launch. CONTENTThe Burnlounge catalog of music continues to grow. Burnlounge has acquired licenses from all 4 major labels (Sony/BMG, Universal, EMI and Warner Music Group), as well as hundreds of independent labels. And the process is continuing as more and more independent aggregators and unsigned artists hear about Burnlounge. Burnlounge has developed an A & R team to identify desirable content still not included in the catalog, and to manage the process of licensing recordings from unsigned artists. Every day, the A & R staff receives more requests for licenses. Also, negotiations continue with independent music aggregators, IODA, The Orchard, Iris, DRA and others. MARKETINGBurnlounge has a unique approach to marketing. Rather than spending millions to promote its own brand, Burnlounge focuses on creating high quality, customizable tools for individual retailers to promote their OWN business. Burnlounge retailers have the ability to create their own teams of retailers and profit from the music sales at multiple points of distribution. WHERE BURNLOUNGE IS GOING:Burnlounge is just getting started. Burnlounge version 1.0 only scratches the surface of the Burnlounge software's capabilities. The development team has already begun to build a significant infrastructure to support the future updates. IGNITE DIGITAL MEDIA is the content delivery/ingestion system. Burnlounge has hired Roger McAulay, the architect behind LodgeNet and eCast, to build the software and hardware systems necessary to create an efficient, reliable system to deliver content to each retailer's customers. IGNITE will begin by ingesting and delivering the content licensed from independent music licensors. In addition, IGNITE will manage the development of future iterations of Burnlounge's technology. Burnlounge is moving forward with an aggressive content strategy. It is the goal of BURNLOUNGE ENTERTAINMENT GROUP to develop the largest catalog of rare (out of print), underserved (niche genres), unsigned (artists without a label) and geo-specific (styles specific to other countries) music in the world. Burnlounge has engaged several consultants to develop relationships with content owners and aggregators in Japan, Korea, China, The Philippines, Australia, New Zealand, The Middle East, South America and Western Europe. Because Burnlounge enables fans to promote the music they love, we believe that making this geo-specific content available creates a new retailer base among foreign nationals who currently live in the United States. Finally, the technology development of the next version of the Burnlounge platform will begin in earnest over the 1st quarter of 2006. While the Burnlounge Version 1.0 is currently browser-based, by summer of 2006 we'll shift it to a desktop application. The new application will merge all elements of the service into one seamless client. BURNLOUNGE VERSION 2.0 will be a download manager, music organizer, music player and have the Burnlounge storefront, I.C.E. and B.M.S. accessible through a built-in browser. Future versions will integrate the Instant Messenger tool and allow retailers to create their own radio podcast programs through a new technology called BurnCast. BurnCast will allow retailers to pick the music they want and drag it into a timeline. The system will then organize the playlist and automatically insert advertising. The system will then track the number of people listening to the program and advertisers will pay according to the size of their listenership. Burnlounge calculates and pays all appropriate royalties, and shares the remaining revenue with the retailer who created the program. In the not-too-distant future, BurnCast could also be used for television and film content. Burnlounge also plans for steady international expansion. Obviously, the US and Canada are just the beginning. Japan will likely be the next market. Japan has the highest ratio of direct-selling, home-based businesses per capita in the world. The international expansion strategy, while aggressive, will also be timely and deliberate. FOUNDERS / CORPORATE ADVISORS:
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