Versaly Entertainment, showed results of its first half of
2009 sales for video downloads in the United States. Versaly's
video-on-demand clips are distributed through its Vmbc.tv mobile video
syndication network. The results clearly show subscription downloads
outperforming pay-per-downloads.
Of all the mobile video storefronts in the Vmbc.tv syndication network,
those offering unlimited downloads for a fixed monthly subscription fee
are downloading about 25 times more video clips compared to those
offering individual pay-per-download models. In addition, overall
revenue from unlimited video download subscriptions are outperforming
individually purchased downloads by almost a factor of 20x. The price of
a monthly subscription is somewhere between 3-5 times that of a single
download. The results show subscription plans clearly add tremendous
value to next-generation mobile video consumption and are strong growth
drivers.
It appears that many mobile video consumers who sign up for fixed
monthly fee subscriptions did not download 3-5 videos in a month and
would have paid less for their monthly consumption if they had simply
purchased their video on an a-la-carte basis. This may be a single
monthly anomaly, or another explanation is the "financial security"
factor - the consumer not thinking about the cost of each video view and
knowing their wireless bill will be the same every month, regardless of
their consumption. Vmbc.tv has seen overall viewership increase and we
believe as the market matures, consumers will continue to increase their
video consumption and the cost-effectiveness of the subscription model
will be realized.
Overall, the Vmbc.tv mobile video syndication network, that includes
video downloads and streaming video-on-demand programming, has seen an
increase of about 60% in views in Q2-09 over Q1-09. The data was
aggregated from Vmbc.tv's 20+ video distribution partners.
Matthew Feldman, president and CEO of Versaly remarked, "I am pleased at
Vmbc.tv's growth over the past 2 years and continue to be optimistic in
the growth of both streaming video and downloadable video products for
the US market. They both have a long-term place in the market. Vmbc.tv's
mobile video syndication network is as strong as ever."