In the Integrity 2ndQ earnings announcement on July 27th, it was stated: "A leading product in the retail segment is WOW, a double CD, that accounted for $1.0 million in sales in the second quarter." Since the CD was released June 15, the $1M in revenue came in the first 2 weeks of release. Since sales have been approximately as strong in the six weeks of this quarter, perhaps $3M in revenue has been generated, or $4M total.
In their announcement released July 29, ITGR stated, "In its first year in the market, WoW Worship is expected to generate sales of more than $2.5 million for Integrity. The three partners will split the album's net profits equally." It looks like we've surpassed that already.
What the preceeding paragraph leaves out is that gross margins become net margins when the orders start to stream in. Splitting the profits three ways is easy when you're earning $.51 for every dollar (read 17% of $4M for ITGR in 8 weeks, no less).
Now investors are bound to be skeptical, but how often has a 'Praise and Worship' album made it to the Billboard 100 for a week? Plans are in the works for another already.
Btw, I've got two more brand new Integrity items (1 tape and 1 CD) on eBay for ridiculously low prices. I'm hoping each ad/auction may lead 20 Christian music purchasers to the Integrity website to sample the soundbites. Search seller=woolyhammock
They're being auctioned on eBay. (seller=woolyhammock) If one has a library of Integrity products and is not listening to them, it's not selling the company; it just isn't worth anything (at the time). We have to keep our inventory moving, too. (If you don't own any ITGR products, why own a company you don't understand? A song is worth 10,000 words.) I work in a music library: It isn't hard to pass CDs out at work but people are already familiar with Integrity there.
I realize selling new products is a little different from just moving inventory but first realize this: A purchaser of an item in shrinkwrap pays a premium and that premium makes him/her feel like a shareholder. In most cases a company that sells gospel music also sells gangsta rap too. Consumers have lost their rights with some of these big recording companies: They want to buy the company but they DON'T want to buy the company. Auctions are perfect for reassuring the potential bidder that ITGR IS the 'Praise & Worship' industry and directing them to more information on owning the products OR the company.
Many of you may feel that Integrity has lost its shrinkwrap. I don't know for sure but I don't think so. I think it's trying hard to please its shareholders. I think the crux is that there are huge problems with advertising. The legal community had similar problems allowing any law firm to promote itself on TV or radio. It was illegal. Along came 'LA Law' and all that seemed to change. Maybe what we need is a nice church sitcom. :-) Seriously, if you use ITGR's online store, you'll notice there's more feedback all the time on CDs and tapes offered. It's getting to be more useful. As the exposure online becomes more effective, real advertising is not too far away.