On Friday’s Shark Tank, two women impress Robert Herjavec by shutting down a scathing critique from Kevin O’Leary. The entrepreneurs behind ZinePak, a company that creates exclusive music packages for artists, defended their exclusive deal with Walmart. The women claimed the chain’s music sales are more than those of Target and BestBuy combined.
— Shark Tank (@ABCSharkTank) April 23, 2015
The confrontation forms part of the preview clip provided to Zimbio.
So, does ZinePak get a deal? An Arkansas Online article revealed that the New York-based company was founded in 2011 and employees 10 people. Brittany Hodak conceived of ZinePak – short for “magazine” and “package” – while a student at the University of Central Arkansas. Hodak majored in communications and worked for Warner Music group.
Hodak and her business partner Kim Kaupe are seeking a hefty investment on Friday night: $725,000 for a 10 percent stake, for a valuation of $7.25 million. Their sales seem to support that ask, however: during the pitch the entrepreneurs disclosed sales of over $3 million for the current year, and $30 million since inception.
The company has partnered with big names such as Katy Perry, Selena Gomez and Luke Bryan. Corporate brands have also gotten in on the action, specifically Dove and American Express.
Hodak’s idea for Zinepak came about after the decline in CD sales and the rise of digital downloads. That shift is one reason why the television watchers at CarterMatt doubt the product will have an impact.
“If this was 1995, this idea would have killed! Our only concern is that so many people now just buy everything online and stick it on their iPhone.”
ZinePak’s official website promotes its partnerships with both brands and music artists. For brands, the appeal is to create “elevated customer experiences,” while for artists, the pitch is “collectible products.”
The outcome of the pitch will be revealed when the program is broadcast Friday night at 8 p.m. eastern and pacific time. Shark Tank is moved ahead one hour this week and the next several weeks, in part to make way for the new spinoff Beyond the Tank.
Shark Robert Herjavec was among those promoting Beyond the Tank on his Twitter feed, as one of his companies, Tipsy Elves, will be featured in the first episode.
— Robert Herjavec (@robertherjavec) April 22, 2015
Beyond the Tank is currently scheduled for a three-episode run on ABC.
[Kevin O’Leary image courtesy of Getty]