Online digital music provider, Destra, has continued its acquisition trail, scooping up independent record label, Central Station Records (CSR) and MRA Entertainment in a deal worth $14 million.
Once the acquisition is approved at a shareholder meeting by CSR and MRA's parent company, Home Leisure Ltd, Destra will absorb over 20,000 music tracks and DVD titles into its catalogue of digital content.
Both Central Station Records and MRA will mark a substantial addition to our catalogue of existing content and help us on our push through the digital content space, said Destra CEO, Domenic Carosa. We are shifting our focus back to our core, and targeting not only music, but a host of other digital content.
He said Destra's strategy for digital content involved three core elements; amassing content through the acquisition of record labels, building online communities based on certain genres/demographics, and finally, monetising these communities through online advertising and the sale of physical and digital products.
Both labels would provide new audiences for the Destra to target, Carosa said. CSR specialises in contemporary dance and youth culture music, while MRA publishes CDs and DVDs with a focus on children's entertainment and extreme sports.
In particular, he noted the strength of the CSR brand and its subsidiary Wild, and plans to build online communities around its targeted content and demographic.
The acquisition marks a 12-month shopping spree for Destra, adding the buys to the previous purchases of a number of record labels and digital content providers including Rajon, Visual Entertainment Group and Payless Entertainment. Carosa said Destra would develop brand extensions for both MRA and CSR through specialised radio and TV content.
Destra will make its boosted music catalogue available through iTunes, Bigpond, NineMSN and Destra's digital music sites, mp3.com.au and www.channelgo.com.au.
Carosa said both management teams and company branding will be kept in tact. Central Station Record's storefronts, in Melbourne and Brisbane, operate under licence so will not be affected by the acquisition.