destra music

Destra Music doesn’t fit entirely under DESTRA MEDIA or ENTERTAINMENT and I thought it interesting enough to start a separate its own topic.

Here is my unqualified opinion put forward for discussion. Hopefully with less spelling mistakes and better English than I’ve pumped out of late!

– Back in January Destra signed a distribution agreement with SonyBMG freeing up the need to invest further in physical warehouse capabilities and infrastructure. Instead allowing it to focus more on the on content, digital distribution and marketing. This should makes its way to the balance sheets, but more importantly it shows me where their heading.

Digital is the future in music. Downloading will be the most common way to obtaining it. When last I looked some 5% of music was purchased online, double that of the previous year. The other 95% of this multi billion dollar industry will follow in due course. Inside five years for the lions share I'd guess.
One can only imagine the speed at which this process would accelerate should file sharing and piracy become a thing of the past.
Its beauty, once set up, the distribution of digital music has a lot of fixed costs so products can be cheap and profits increased exponentially.

For DESTRA, there is more than just selling music. Harvey Norman, JB HI FI Woolworths and any number of businesses and websites will be happy to sell or even give away music, but they will have little desire to manage it in its entirety, for infrastructure, quality, distribution and legalities they will look to the experts.

DES has the experience the expertise, contacts, agreements, arrangements and infrastructure in place to be a leading player, if not the leader in this field, when the quantum leap for the music industry takes place.
It drew little comment when DESTRA Music recently engaged the US firm RoyaltyShare to manage digital sales processing and royalties but to me its DES just being ahead of the game.
DESTRA music is one of the X factors in the scheme of things. I like its positioning in the digital world, almost a first to market approach, and I like the possibility it could potentially turn into a rivers of gold sooner rather than later.

Your thoughts Please.

Again this is my opinion only please DYOR.


Cheers


Oscar


Becoming a serial DES poster, in line with my growth in holdings I guess. If it all turns to custard its going to sting.