To provide karaoke entertainment to home users and karaoke operators at a lower maintenance cost and increases customer satisfaction.
To support country’s anti-piracy measures and combat karaoke piracy market.
To catapult Malaysian music industry into an advanced and safe technology era.
To increase revenue collection for PPM (Public Performance Malaysia) and RECORD LABELS.
The project is called Channel K. We are looking at RM5mil investment to cover the development, advances, operation, sales and marketing for 4 Years with an achievable RM145mil returns in revenue in the 4 Year.
Today’s music market is reign by syndicates and piracy. We believe with an introduction of our product in the market, we will able to reduce piracy and increase collection for the music industry, at least not the music business overall but the karaoke format.
Channel K is definitely a winning project because its concept for being the 1st in the world. The will be no more physical product ie CD, VCD & DVD in the next few years to come. It is the new era of digital music world. On the up side, we are the market leader because we will have the exclusivity for 4 years (1 year development & 3 years commercial exploitation) from PPM and record labels.
Malaysian consumption for karaoke content is rather high. There are more than 1 million households in Malaysia have karaoke set at home. Once the system is ready, we could even introduce and bring it to other countries like Singapore, Indonesia, Thailand, Philippines, Taiwan, Hong Kong, China etc.
I am the founder of the product. All this while, I have been dealing with PPM, service provider, developer etc via xxx Sdn Bhd which is my company. xxx Group are established to market the products I created. I am willing to allocate 30% ordinary share to the investor into the subsidiary, xxx Sdn Bhd but first, investor will get to recoup the full RM5mil investment from our profit before the split.
Currently, we are developing the hardware and finalizing our agreement with PPM and all the record labels. On schedule, the system will be ready for UAT by March 2012 and ready to market by June 2012.
The project risk is minimal because of exclusivity and the good system. The only risk is execution risk to get this project launch on time. For this, we will work hard and smart to make sure we go to market on time with great product.