American Southwest Music Distribution is a publicly held company (currently BB: GEEX) that has partnered with Universal Music Group (UMG) to begin marketing and selling music and motion pictures to consumers worldwide.  It will be distributed in the form of company discs, DVD’s, digital downloads, subscription, webcasting, interactive radio and pay-per-play through all digital channels of purchase such as computers, TV set top boxes, and portable devices.  I-tunes and ringtones are the most noticeable trend for the youth of today.  ASMD gives new artists of all genres the opportunity for upstream into a major record label (UMG).

ASMD is now an extension of Universal Music Group which leads the music industry in global sales with an estimated worldwide market share in 2005 of 25.6%.  Its global operations encompass the development, marketing, sales, and distribution of recorded music through a network of subsidiaries, joint ventures and licensees in 75 countries, representing approximately 98% of the music market.  UMG is the #1 company in countries which together represent more than 50% of the global music market sales, including the U.S. and the U.K.

Although American Southwest will focus on selling music and motion picture previously not released to consumers, American owns a music catalog consisting of rights to master recordings acquired from two other record labels: Celestial Breakaway and Out of Control Records.  These labels previously released master recordings to consumers, and American plans to re-release these masters to consumers through retail and digital distribution.  Based on previous commercial success, American’s management expects that these masters will generate steady revenues for American.  American also plans to acquire or license additional rights to music catalogs to augment its existing catalog, and commercially exploit its entire catalog worldwide.

A substantial part of American’ activity will be devoted to the acquisition of worldwide rights to new master recordings from recording artists and record production companies, and the acquisition of new motion pictures produced by production companies seeking worldwide distribution for their works.  American’s rights to new master recordings will be embodied in record contracts with recording artists and production companies.  In each record contract, American acquires the exclusive worldwide copyright and right to manufacture, distribute and license products derived from the new masters recordings created by those recording artists.