K-POP Sales Increase 55% to $32.0 Million Over Previous Year
PLANTATION, Fla., Aug. 22, 2023 (GLOBE NEWSWIRE) -- Alliance Entertainment Holding Corporation ( AENT) (“Alliance Entertainment”, “Company”), a distributor and wholesaler of the world’s largest in stock selection of music, movies, video games, electronics, arcades, and collectibles, today announced that it has shipped over 2.0 million units representing $32.0 million in K-POP sales during the twelve months ending July 31, 2023. This represents a 55% increase over the previous year of approximately 1.3 million units shipped and $20.7 million in K-POP sales. With several other major K-POP acts scheduled to be released throughout the balance of 2023, this exponential sales growth is expected to continue.
K-POP, or Korean popular music, is driving enormous consumer demand and sales growth in physical music media, particularly in the Compact Disc market. Alliance Entertainment and its AMPED Distribution division are at the forefront of capitalizing on and fulfilling this demand through partnerships with domestic major and independent labels and importing directly from Korean based labels through AMPED.
“K-POP is absolutely on fire with big new release shipments going to retail in August and October from multiple artists,” said Jeff Walker, CEO of Alliance Entertainment. “It is no longer only BTS and a couple other bands, this is now a significant genre of music worldwide. K-POP has helped revive the CD business and we cannot wait until these titles move to vinyl, which will be fantastic for the K-POP fans.”
According to music industry data, nine out of the top ten CD best sellers for 2023 are K-Pop releases, driven by key artists such as ATEEZ, Twice, Stray Kids, BLACKPINK, NCT 127, NewJeans and Tomorrow X Together. Featuring elaborate packaging and multiple versions of releases, fans are encouraged to collect and own as many variants as possible. With an average retail price of $20-$25 per package, fans have been known to spend upwards of $200 to own every version of their favorite bands release. Additional industry data has shown that 69% of K-Pop fans are more likely to be motivated to purchase music by a desire to “show support” for their favorite artists. With multiple releases throughout the year, it creates many opportunities to serve their rabid fanbase. Major commitments at all levels of retail have dramatically increased the availability, exposure and marketing of K-POP with plans for further expansion.
About AMPED Distribution
AMPED is one of the fastest growing, top-tier independent distributors committed to developing and growing independent artists and labels worldwide. A part of Alliance Entertainment, AMPED gives the indie community access to a global distribution system with the largest sales force, a seasoned and skilled staff that provides a suite of services and data second to none. AMPED’s customer base is the largest in the industry directly servicing brick and click retailers large and small along with (DTC) direct consumers. AMPED’s growing roster of labels include labels such as Believe Digital, Better Noise, Big Loud, By Norse, Cleopatra Records, Compass Records, Compound Interest, Earache, Empire, Epitaph Records, Firebird Records, Flatiron, Fuga, GoodToGo, Herp Alpert Presents, Hopeless Records, Iconic Artist Group, IDLA, Integral (PIAS, Harmonia Mundi), Kai Media, Kartel, Lex Records, Mascot, Merge Records, MNRK (eOne, Dualtone), Nettwerk Music Group, Nuclear Blast, Polyvinyl, Proper Music Group, Rebel Records, Reservoir Media (Chrysalis, Tommy Boy), Ruf Records, Secretly Music Group, Shanachie, Smithsonian Folkways, Sub Pop, Tuff Gong, Warner Classics and more.
About Alliance Entertainment
Alliance Entertainment is a premier distributor of music, movies, and consumer electronics. We offer over 425,000 unique in stock SKU’s, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information, visit www.aent.com.
Forward Looking Statements
Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether identified in this Press Release, and on the current expectations of Alliance’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance. These forward-looking statements are subject to a number of risks and uncertainties, including risks relating to the anticipated growth rates and market opportunities; changes in applicable laws or regulations; the ability of Alliance to execute its business model, including market acceptance of its systems and related services; Alliance’s reliance on a concentration of suppliers for its products and services; increases in Alliance’s costs, disruption of supply, or shortage of products and materials; Alliance’s dependence on a concentration of customers, and failure to add new customers or expand sales to Alliance’s existing customers; increased Alliance inventory and risk of obsolescence; Alliance’s significant amount of indebtedness; Our ability to continue as a going concern absent access to sources of liquidity; risks and failure by Alliance to meet the covenant requirements of its revolving credit facility, including a fixed charge coverage ratio; risks that a breach of the revolving credit facility, including Alliance’s recent breach of the covenant requirements, could result in the lender declaring a default and that the full outstanding amount under the revolving credit facility could be immediately due in full, which would have severe adverse consequences for the Company; known or future litigation and regulatory enforcement risks, including the diversion of time and attention and the additional costs and demands on Alliance’s resources; Alliance’s business being adversely affected by increased inflation, higher interest rates and other adverse economic, business, and/or competitive factors; geopolitical risk and changes in applicable laws or regulations; risk that the COVID-19 pandemic, and local, state, and federal responses to addressing the pandemic may have an adverse effect on our business operations, as well as our financial condition and results of operations; substantial regulations, which are evolving, and unfavorable changes or failure by Alliance to comply with these regulations; product liability claims, which could harm Alliance’s financial condition and liquidity if Alliance is not able to successfully defend or insure against such claims; availability of additional capital to support business growth; and the inability of Alliance to develop and maintain effective internal controls.
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MZ Group
Chris Tyson/Larry Holub
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