Somerset Entertainment is the leading producer and distributor of specialty music sold through non-traditional retailers using interactive displays. Established in 1994, Somerset produces and distributes concept-based music targeted at consumers over the age of 30. Its 19 diverse product lines represent a variety of music genres, including world, relaxation, jazz, classical, children’s and hit compilations.

Originally catering to independent gift stores, Somerset has expanded its customer base to include mass merchants and specialty chain customers. Somerset’s extensive network of over 28,000 interactive displays in 18,500 locations, includes 9,500 mass merchants, 2,500 specialty chains and 6,500 independent gift stores in more than 20 countries.

Since 1994, Somerset has grown at a compounded annual rate of 36.4% reaching revenues of $76.1 million in 2005.  Annual sales of Somerset’s albums have grown from 636,000 units in 1994 to over 11.2 million units in 2005. Most recently Somerset has chosen to capitalize on the $16 billion DVD industry, by signing an exclusive licensing agreement with Fisher-Price® to market and distribute the popular Little People® series of DVDs. 

Based in Toronto, Canada, Somerset employs approximately 150 people at offices in Toronto, Ontario (Canada); Buffalo Grove, Illinois, and Minneapolis, Minnesota (U.S.A.); and Essex, England (U.K.).

Somerset completed its initial public offering on March 18, 2005. Units of the Fund are traded on the Toronto Stock Exchange (“TSE”) under the symbol SOM.UN.

Core Strategy
By focusing on a mature consumer and distributing through non-traditional retailers using interactive displays, Somerset capitalizes on new and recurring revenue opportunities.

• Concept-Based Music
  Somerset provides a wide range of concept-based music targeted at a predominantly female, over-30 demographic. Key concepts include relaxation, health and well-being, entertaining and romance.
  
• Interactive Displays
  Somerset’s music offerings are provided through attractive, interactive music displays designed to entice consumers with music sampling capabilities. The proprietary displays feature immediate playback, continuous/non-continuous play modes and volume control.
  
• Alternative Distribution Channel
  Somerset reaches its target demographic by placing its interactive displays within non-traditional retailers. Mass merchants and specialty retailers account for over 55% and 21%, respectively, of Somerset’s North American revenue. Somerset is continually exploring new distribution channels—most recently expanding its distribution to include grocery and drug (U.S.), outdoor and sporting life (U.S. and Canada), and home improvement retailers (Canada).