Singing Machine generated record subscription sales for 2023 holiday season

The Singing Machine Company announced a significant new milestone in its partnership with leading music, media and technology company, Stingray Group, for their shared karaoke subscription service. For 2023, the Stingray-Singing Machine subscription service generated a record $3.28 million in gross sales, representing a 34.8% increase over the prior calendar year subscription sales. As part of its agreement with Stingray, the Company’s profit share is calculated after deducting all costs of goods sold and expenses associated with maintaining this service. Consequently, the Company records net sales on music subscription sales at approximately 100% gross margin. “We are excited to report that subscription sales generated very strong results for the Company in 2023,” commented Gary Atkinson, CEO of the Singing Machine. “We launched the first subscription- based music service in a pilot product offered only at Costco for the Christmas of 2021, and we have been very encouraged by the rapid acceptance of this service by consumers as we expanded the product placement in more retail locations globally.”