Singing Machine Provides Update on Accelerating Karaoke Content Subscription Model

Steering the technologyare Expand recurring revenue base

Fort Lauderdale, Florida, February 01, 2022 (GLOBE NEWSWIRE) — The Singing Machine CompanyNY, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the global leader in consumer karaoke products provided an update on the operating results of its rapidly expanding subscription-based recurring digital karaoke music services. The summary results were as follows:

  • Subscriptions to the Company’s digital music library service increased 25% over the same period in December 2020.
  • Subscriptions integrated through the company’s WiFi Premium Karaoke System achieved a 371% increase in subscription revenue over the same period to December 2020. This represents a significantly higher subscription adoption rate, faster than unit sales growth. The company recorded 20% unit sales growth for its WiFi Premium Karaoke System during an extensive pilot marketing program primarily offered by Costco and Sam’s Club during the 2021 holiday shopping season.

In the third quarter of 2021, the Company announced the transformation of its majority shareholders by a $10 million capital market transaction. As part of this transaction, Stingray Group, Inc. (“Stingray”), a leading B2B and B2C digital content provider, became one of the Company’s major shareholders and a key strategic technology partner. Stingray is a critical delivery partner for the company’s digital music library, which is at the heart of the new subscription-based recurring revenue model. It is a scalable, high EBITDA margin offering and is expected to contribute significantly to the company’s overall EBITDA and profitability growth rates for the foreseeable future.

“We are encouraged by the good first results of our vacation subscriptions”, commented Gary AtkinsonCEO of singing machine. “We not only experienced strong unit sales growth for one of our highest average priced products, but we also saw significantly higher subscriber adoption for our proprietary digital music library by these customers.”

“The coming months will help clarify our churn rates, or subscriber attrition rates. Provided our forecasts are correct, we are optimistic that this rapidly expanding subscriber base could have an outsized positive impact on our subscriber mix. overall profitability in the current fiscal year. As we approach 2022, we have exciting opportunities to expand the assortment and reduce the retail prices of our karaoke devices that can effortlessly connect to our new subscription-based content service,” Atkinson concluded.

On The singing machine

singing machine® is the leading supplier of karaoke products to consumers around the world. The company offers the widest range of home and car karaoke entertainment products in the industry, allowing consumers to find a machine that suits their needs and skill level. The Company’s products are sold in more than 25,000 locations worldwide, including well-known retailers such as Amazon, Costco, Sam’s Club, Target and Walmart. As the most recognized brand in the karaoke field, singing machine The products incorporate the latest technology and provide access to over 100,000 songs to stream through its mobile app and select WiFi-enabled products. To learn more, visit www.singingmachine.com.

Contact with Investor Relations:Brendan Hopkins(407) 645-5295
[email protected]
www.singingmachine.com
www.singingmachine.com/investors

Forward-looking statements
This press release containsforward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such a frontforward-looking statements are based on current expectations, estimates and projections about the company’s business, in part on assumptions made by management and include, but are not limited to, statements about our financial statements for the year ended March, 31st, 2021. You should review our risk factors in our SECOND deposits which are incorporated herein by reference. Such a frontforward-looking statements speak only as of the date they are made and the company undertakes no obligation to updateforward-looking statement to reflect events or circumstances after the date of this release.

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Source: Singing Machine, Inc.

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