SAN FRANCISCO, CA / ACCESSWIRE / November 22, 2022 / Sanwire Corporation ("Sanwire" or the "Company") (OTC PINK:SNWR), an entertainment technology innovator, and its wholly owned subsidiary, Intercept Music Inc ("Intercept") - a multi-faceted label and artist-centric platform solution provider, are pleased to announce third quarter 2022 financial performance results.
Third quarter 2022 was another record-breaking quarter for the Company, with revenues up 250% over second quarter 2022, and up 350% over third quarter 2021. Three main factors continue to drive revenues - our "everything" dashboard, our growing list of marketing services, and 100% data transparency.
The business model is solidifying. Labels continue to be our best source of artists. Since they bring their artist management and understanding of the business side, and they are able to oversee the artist involvement and the music marketing. We make the least margin on distribution, but the music drives demand for the marketing services, which are the highest margin and represent much more gross profit for us.
Until recently, marketing services were only available to our customers for music we distributed. In late September 2022, we began offering marketing services to outside artists and labels. Our internal customers receive a 20% discount if they are distributing their music through us. This has led to an increase in marketing service sales, which created another pathway to gain the trust of the artist that can lead to future distribution. As a result, we now have a full-time person identifying and vetting these services, and then prepare them for our reps to take to market. In January 2022 we had five marketing services to sell. Today we have 22 services, with 13 more in the queue. The average spend per new music release continues to rise.
We have many labels which have built their entire service offering around our platform. We see labels adding artists and buying marketing services on autopilot now. We've seen increases in the merchandise sales by artist. Our average artist, in terms of streams, marketing expenditures, and overall quality of music, has risen. Nine months ago, our largest artists had 700,000 monthly Spotify listeners. Today our largest has 25 million. Larger artists tend to spend more on marketing too.
We see positive responses from sophisticated labels, which has been reflected in some key partnerships. One of the recent ones was the Sapphire group of labels. Across Sapphire's four labels, they will bring their 120 artists over to our platform for distribution and marketing services, they intend to add another 100 artists over the next year, and they just added eight new marketing services for us to introduce to our existing artists and labels including mixing and sync licensing for movies, radio and television.
In September 2022, we expanded into the Latin market. Our website and software are now available in Spanish and Portuguese. We have multilingual staff who are trained and able to support every department, from customer sales, support, onboarding, marketing services and distribution. So far, we have 12 Latin marketing services available, including some not available in the U.S. Our new Latin sales team has signed one major Latin Artist (Marcos Menchaca - 1.2 million Spotify listeners), closed a label with 12 artists in Guadalajara and Mexico City, and an artist from Peru.
During fourth quarter 2022, we will continue to expand in the Latin markets. We also expect to announce several major global partnerships that will drive US sales in 2023. We will launch more marketing services, and we hope to add more music catalogs.
With several successive quarters of growth, the Company will be finalizing its funding and capital requirements for the medium term and should be done by the end of the fourth quarter 2022. We believe that with the explosion of music being created, the success of digital promotion, and the merger activities taking place within the music industry, the time is right now.
"I'd like to personally thank our shareholders; we could not have achieved these results without your support," said Tod Turner, Intercept's president. "We've laid out a strong growth foundation and an incredible team to execute."
"Intercept Music is proving to be an international force within the music industry," proudly stated Ron Hughes, CEO of Sanwire Corporation.
About Intercept Music Inc.
Intercept Music champions creative musicians. The entertainment technology company harnesses the power of premium distribution, sizzling social media, meaningful marketing, monumental merchandising, and customizable promotional services to empower independent labels and their artists to build audiences and drive revenue. The Software as a Service (SaaS) company focuses exclusively on the independent music market, the fastest-growing sector of the music industry. Learn more at interceptmusic.com or visit Intercept Music's Instagram, Twitter, and Facebook.
About Sanwire Corporation
Sanwire Corporation (OTC:SNWR), a diversified company with a focus on technologies for the entertainment industry, has been involved in aggregating technologies for several years. We look for opportunities in fragmented markets, where technology can be applied to consolidate services into a single platform of delivery. Our current focus is advanced entertainment technologies. For more information, visit sanwirecorporation.com.
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SOURCE: Sanwire Corporation