Versaly Entertainment

Continuing on my main theme that mobile is not a product that differs from any other media device…is there a consumer preference for a mobile video format?

As a quick background, video-on-demand basically means a video plays when I want it to play.  Instant gratification…oh yea!  Linear means a video is playing and whenever I “join” the broadcast, I watch whatever is being played at that time.  Watch what I want, when I want…or watch what someone else tells me to watch…hummm.

On TV there is both linear and VOD.  Linear includes half-hour episodes, 2-hour movies and everything in between.  TV also offers VOD that includes free shows and pay-per-view movies.  Add a DVR (e.g. TiVo) to the system, and now linear programming is converted to VOD.  However, all formats are watched and are welcome in our living rooms.

Movie theaters show pricey movies at designated times…not exactly VOD or linear.

The Web…almost entirely free, almost entirely short-form and almost entirely VOD.

All these entertainment outlets have their own model…and are accepted for what they offer.  Plus, the medium has sort of helped define the content format.

Now comes mobile, a new medium that complements all of them and offers a combination of all of them.  But since mobile phones have small screens and are so portable…”what” and “how” do people want to consume video on their phones?

Answer…all of the above.  Anything that is entertaining that can hold a viewer’s attention…whether in their home, office, lunch hour, or weekend excursion…will work on mobile.  I understand there will be a single dominant format…which our 3+ years of experience shows is short-form VOD…but all formats have a place and I feel they all can have a certain level of success.  Mobile is flexible enough to handle multiple formats…and there is an audience to digest the different formats.

Just like television now offers a variety of options, including a large number of channels for every interest…so should mobile.  There will never be a single solution to satisfy any majority in the US…and the wireless carriers should see this and offer the variety that consumers currently enjoy on their TV and Web-connected computer.  When that happens…at a price point that is acceptable…mobile video will skyrocket!

I originally scheduled a different subject for this week, but I am so annoyed at the various reports that claim the mobile video market is “slower adoption than expected.”

The latest was just in MocoNews.net (April 14, 2008 ) “Nokia Concedes Mobile TV Is Slow-Going, ‘In Turmoil’”

As I have mentioned before…mobile is not some new-fangled product that defies basic economics and retail principles from the past 100+ years.  “If you build it, they will come” just doesn’t work.  Companies need to offer products that consumers want.

So…who gets blamed for a poor mobile video market?  Reports tend to blame the consumers…saying they aren’t interested in mobile video.  Of course they are!  The fact is…consumers aren’t interested in the programming that is available in mobile video!  Reports seem to focus on “the next killer app.”  Mobile video is a “killer app”…it is just being offered in such a poor manner.

Reports should highlight key factors in successful and unsuccessful mobile video offerings.

• On-deck vs. Off-deck?
• VOD vs. Linear?
• Long-form vs. Short-form?
• Branded vs. UGC vs. Original content?
• Featured placement vs. general browsing?
• Overall cost of entry vs. Perceived value in return?
• Free ad-funded vs. Paid subscriptions?
• WAP ads vs. Video ads?
• Pre-rolls vs. Mid-rolls vs. Overlays?
• Refresh frequency?
• Quantity of video?
• Social networking features (notifications and viral forwarding)?
• Content provider revenue models?
• Marketing campaigns to drive viewer acquisition?

These are all important factors in the success of mobile video…and topics I have opinions on and will be covering in the near future.

Versaly has over 3 years of experience in operating mobile video channels and analyzing results to support our position on these factors.

So, last week I discussed how carrier video decks may be easier to initially find, but since they don’t offer great programming line-ups, viewers are searching and finding off-deck video sites.

Zannel. MOSH, MyCorner, MyWaves, JuiceCaster, HandiTV to name a few.

There are 2 main principles in operating a mobile video-on-demand (MVOD) network or any mass media distribution – user acquisition and user retention.  (The term “user” can be replaced with “subscriber.”)

Once a Consumer finds a channel they like, it is imperative to keep them coming back…which is user retention…and that requires active programming.  When a consumer returns to a channel, they want to see something interesting and new.  They want the content to reinforce the reason they liked it initially and caused them to return.  I guess you can call it “addictive.”

Consumers are demanding.  They want “new and interesting” each and every time they visit a site.  Some may be understanding and give a channel a 2^nd or 3^rd chance…but once you loose a consumer…they are lost for good…so you better have a good programming schedule to keep them.  The entire value of a off-deck site is the quantity of users visiting and returning.  Once you loose your consumer-base, your product is finished.

Programming includes content subject matter (branded and unbranded), content production value, variety, quantity (depth), and refresh rate.

What we have found as a good refresh rate in mobile is twice weekly…a week day and weekend version of a program.  About 30% new content for each refresh and a resort of older content based on popularity…meaning…remove the low performers, keep the top performers.

Most importantly, set proper expectations.  Respect your consumer and they will return the favor ten-fold.

Since March 2005, Versaly’s mobile video business unit, Vmbc.tv, has been programming mobile video-on-demand channels…both on carrier decks and “off-deck” portals.

What is a carrier deck and what is an “off-deck” portal deck. All it means is where the top level link (menu item) to the channel resides. Or better yet…how easy it is to find the channel on your mobile phone. Verizon’s Vcast and Sprint’s Media Player (or whatever they are calling it now) have somewhere around 2-3 million paying subscribers. MyWaves and other “off-deck” portals claim upwards of 10 million free subscribers (without providing frequent visitors). With this comparison, how easy it is to find and how many people are browsing the categories and/or channels are pretty equal in audience. Is there a significant value difference? I don’t think so.

Once a channel is “discovered” by a consumer…the consumer can revisit that location over and over again. Is there a different “value” to being on a carrier deck verse off-deck portal? Well, a view is a view is a view. If Versaly can generate 1 million views with an off-deck portal and 1 million views on a carrier deck, then they should be considered equal value.

However, large media companies still feel carrier decks offer more value…and only include carrier deck programming in their mobile video strategy. I agree carriers do spend a lot more in marketing…with loads of TV commercials, but has that provided an ROI to the carriers? With only 2-3 million paying subscribers, it doesn’t seem so.

Consumers want mobile video. When they cannot find any good channels (synonymous to “nothings on TV!”), the consumer will venture out and find off-deck portals. Q: Is one deck better than another? A: That is up to the individual Consumer.

Welcome again to the Versaly Blog. Since this in my first blog, and you may not be familiar with me, before I start giving you my opinions on the mobile entertainment industry, let me first give you a brief summary of myself.

I am Versaly’s co-founder, President and Chief Executive Officer. Back in 2002 and 2003, I helped launch Paramount Pictures into the mobile entertainment world with Star Trek and Endemol USA with Fear Factor. Throughout Versaly’s history, I have worked directly with Versaly’s major brand partners and distribution partners. I am now leading Versaly through its current industry-leading focus with Vmbc.tv (Versaly Mobile Broadcasting Company), a mobile video-on-demand network that produces, programs and distributes six mobile video-on-demand channels, including Fast Lane (M18-24), Fleur (F18-24), Hollywood Insider, Sabor Movil (Latino), V Street (Urban Lifestyle) and Building Blocks (edutainment “pass-back” content for children). Combined, these channels stream over 1 million files per month to mobile handsets.

In addition to my corporate duties, and I am a guest speaker at various industry events within the US…and I am always available to meet. My favorite is Digital Hollywood, which happens every Spring and Fall in LA…either Hollywood ro Santa Monica.  Prior to Versaly Entertainment, I previously founded, managed and successfully sold two companies to publicly-traded companies. During those companies, I was frequently a guest speaker at industry events, including Comdex in Las Vegas and PC Expo in NYC. I earned a B.S. degree in Mechanical Engineering from Carnegie-Mellon University and a M.S. degree in Computer Science from Stevens Institute of Technology.

See more at http://www.linkedin.com/in/mfeldman.

Thank you for taking the time to learn a little bit about me and I look forward to sharing my views on the mobile entertainment industry with you in the future.

Versaly® Entertainment is a mobile media and entertainment company.

Versaly was founded in 2000 in Bellevue, Washington by Matthew Feldman and J. Michael Davis as Versaly Games, Inc. and was initially focused on publishing mobile games. Back in 2001, it was clear that the mobile game industry would be complex and require large funding to become a successful global games publisher. This was around the time when the first mobile phone with a color screen was launched, the SonyEricsson T68. We quickly predicted the future of mobile entertainment was absolutely going to go hand-in-hand with the technical evolution crammed into the mobile phone…and Versaly morphed into a mobile media and entertainment company; and continues that today.

Back in 2002, the state of the industry was polyphonic ringtones and 8-bit color wallpapers. So, that’s the products Versaly produced and distributed. During the past 7 years, we have achieved much success. We launched the first voicetones and Spanish voicetones in the US on Sprint. We introduced Paramount Pictures and Endemol to the mobile industry, with their prized properties, “Star Trek” and “Fear Factor,” respectively. We produced and sold one of the first MS Smartphone ringtones and themes in the US, with Star Trek and Jimi Hendrix. Versaly ignited the TruTone remix market with Sir Mix-A-Lot’s “Baby Got Back Remix” hitting Gold in its first 6 weeks. That “technical evolution-market growth” relationship is still valid today. And today, Versaly is producing and distributing full-color wallpapers, animated screensavers, slideshows, TruTones, VoiceTones, Ringback Tones, Video clips and streaming video-on-demand clips that support over 400 handset models to wireless operators, web portals and global resellers covering 90% of the world’s mobile marketplace.

Our wallpaper and animation content cover genres relevant to today’s mobile consumer, including sexy girls/guys, celebrity paparazzi photos, holidays/seasonal, teens/tweens, religious/spiritual, motivational, urban, Latino, world landmarks, landscapes and cityscapes, and are packaged within one of our strong brands.

Versaly is leading again with free-to-watch advertising-supported mobile video-on-demand. All mass-media today is sponsored in some way by advertising. Why should mobile media be different? Granted, the mobile industry cannot over do it, but if done properly, it can be very effective. Versaly is doing it properly.

Our video content covers genres relevant to today’s mobile consumer, including sexy girls, comedy, movie trailers, reviews and Hollywood gossip, urban, Latino, and much more; and are programmed within one of our six strong mobile channels.

Versaly was derived from the word “Universally” as in “universally available entertainment.” The “V” logo represents a person (upper body) with their hands up and holding a mobile phone in their left hand.

Thank you for taking the time to learn a little bit about Versaly and we look forward to sharing our views on the mobile entertainment industry with you in the future.