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07 15 2002

Jaggo Records has successfully completed the market test of the Outerstar album.  The first-of-its-kind, the company's market test concept marks an innovative approach to artist development uncommon in the music industry.

"Major labels commonly throw music 'at the wall' of the major markets," explains Jaggo's Co-CEO Nathaniel Schellin.  "If it doesn't immediately 'stick', the campaign for that artist is usually over.  There is no real 'artist development'.  The large up-front investment in an act by a Major label necessitates not only a major-market release, but a major-market success.  The recording costs alone require it!"

Regarding how Jaggo Records differs, Schellin continues: "Jaggo has organized itself as a more efficient, self-contained entity.  Almost all of our production happens in-house, so those costs alone are significantly reduced.  Our staff is mostly outsourced, so not only do we have very little overhead, but elements can be turned 'on' or 'off' as required in a campaign."

Jaggo Records has taken a different approach to releasing music, instead focusing initially on the small and medium sized markets to better identify an act's target audience.  With major-label distribution and a solid press and radio promotion campaign, the company can successfully gauge an act's commercial viability on a national scale without the enormous expenses that accompany a "major-market only" release -- and thus reducing the risk to the label when the time comes for that major-market release.

Co-CEO Chris Martin further explains: "Our plan for Outerstar was to establish not only the band but also Jaggo Records with radio, press and retail exposure.  We accomplished that.  And with the various tracking systems out there -- Soundscan, radio tracking, Arbitron, etc. -- along with innovative Internet marketing and information gathering, we can also better identify the audience before we get to the major-markets.  We accomplished that also."

Schellin continues, "Our test of Outerstar shows that we can be confident in releasing it to the major markets.  Outerstar's debut album will be re-released with new packaging and additional bonus tracks.  We can also spend the necessary marketing dollars for a major-market campaign, knowing that it is based on a solid foundation, rather than throwing the music 'at the wall'! "

This approach not only allows Jaggo Records to more effectively target the major markets, but also allows the company to open-up alternative channels where success with a release is not dependent on traditional methods of breaking an act in major markets.

The company plans to use this market-test model for its future releases and for artists it produces under a joint-venture relationship with other labels.  Additionally, Jaggo will offer similar artist-development services to other labels exclusively for their artists.
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