Business Sectors

MAGIX is divides itself into Consumer, Professional, Portal and OEM business sectors according to distribution channels.

Consumer

Consumer, the business sector of MAGIX with the highest sales, incorporates all retail sales. Domestically and internationally, MAGIX has a widely reaching distribution network with high-revenue retail partners such as Saturn/Media Markt, Amazon, Dixons, Fnac and BestBuy, as well as its own subsidiaries in North America and Europe. MAGIX sells software for creation, design, presentation and archiving of digital photos, graphics, videos and music that it develops to private users via this classic distribution model and is counted among the leading providers of multimedia applications.

Professional

Although MAGIX is often perceived first through the Consumer sector due to its strong presence in retail, the company's historic roots lie in professional product sales. Since the founding of the company in 1993, the Professional sector has addressed commercial users. From the very start, this has taken place either directly or through intermediary specialized retailers. For years, MAGIX has been the leader with its professional audio software in Germany. Samplitude and Sequoia are used by TV and broadcasting companies like the Westdeutsche Rundfunk, Mitteldeutsche Rundfunk, Bayrische Rundfunk, Radio Bremen and the BBC. With Xara Xtreme Pro and Video Pro X, MAGIX now offers solutions tailored for professional use in the areas of photo & graphic and video for commercial users. Although the Professional sector delivers a relatively small portion of revenue, it was a fundamental meaning for MAGIX by incorporating the power of innovation, necessary for continuously meeting the highest demands.

Portal

MAGIX offers a comprehensive range of software, online services and digital contents for easy direct shipping or as an immediate download to home PCs on the group's own Internet portals www.magix.com, www.mufin.com, www.catooh.com, www.xara.com, and www.magix-online.de. The revenues received through this channel, what have steadily grown in the last several years, are assigned to the Portal business sector. In addition, this sector includes services, performed by MAGIX for commercial customers. PC products with company Internet services are combined with the wishes of business partners, creating comprehensive multimedia solutions which can be built into their Internet portals in a short space of time. MAGIX products may also be altered in their functionality to the wishes of the client. Clients such as Freenet and Orange telecommunications companies have come to appreciate services from MAGIX.

OEM

MAGIX licenses its software to OEM (Original Equipment Manufacturer) partners, or manufacturers of digital end devices like PCs, laptops, mobile phones, MP3 players, photos and video cameras. These OEMs sell their products in a package with software that has often been reduced in its functionality (OEM version). Thanks to the included MAGIX software and related online services, OEM partners can offer an added value to their hardware to their customers and to differentiate themselves from the competition. MAGIX mostly receives fixed license fees from business partners for OEM versions which are then assigned to the OEM sector. In spite of its comparatively low contribution to MAGIX AG's total revenue, OEM distribution is an extremely important part of the group's product strategy. By combining with business partners' hardware, the group can directly reach users that are not informed about multimedia products directly via the Internet or specialized retailers. The OEM distribution thus contributes to the expansion of the customer base.

Registered customers

As of June 30, 2009, MAGIX counted more that 10.2 million customers. In order to retain these for the long term, we offers special support for users of MAGIX products and services as well as an expanded access to our online services. In addition, registered customers can use additional (some fee-based, some free)services.