Welcome!

Wearables Authors: Carmen Gonzalez, Liz McMillan, Jnan Dash, Elizabeth White, Pat Romanski

News Feed Item

Psychic Friends Network (PFNI) Readies 'Freemium' Mobile Apps in Bid to Re-Dominate the Nearly $2.5B Psychic Entertainment Market

NEWARK, Delaware, December 12, 2012 /PRNewswire/ --

Psychic Friends Network, the company that single-handedly created the psychic entertainment market in the 1990s and generated over $1 billion in revenue, is developing a mobile smartphone/tablet application (mobile app), a first for the psychic service industry.

"This is a major breakthrough not just for the Psychic Friends Network, but for the entire psychic service industry," said Marc Lasky, CEO of Psychic Friends Network. "Our research indicates that among the under-40 customer base, the new mobile app could quickly become the primary means for seeking psychic services. And among our more traditional customer base, the new app could broadly increase usage with its ease of accessibility."

Make Money by Giving Something Away

According to information and analysis provider IHS, "…the best way to make money in the smartphone apps market is to give away apps for free-and to generate revenue on subsequent sales of in-app purchases." This model of offering apps for free, then charging for content, is known as "freemium." This strategy represents the fastest-growing segment of the global smartphone apps business, and will soon dominate the market.

IHS notes that a whopping 96 percent of all smartphone apps downloaded in 2011 were free and, predicts that in-app purchases will account for 64 percent of total market revenue by 2015, compared to 39 percent in 2011. They further reveal that well over 50 percent of the top-grossing apps on Android and half the top games for iOS are free. It is notable that this trend is largely limited to games, but then again, games are by far the most popular category of all apps.

The company with the greatest success to date with freemium games and who helped to popularize them is Zynga, which rode the popular FarmVille and its other Facebook games to an initial public offering of almost $1 billion. FarmVille is free to play, but players can purchase "farm cash," which can be used to make crops immediately available for harvest. Other top public companies using this strategy with mobile games include Electronic Arts (NASDAQ:EA) with a market cap of $4.5B, Glu Mobile with a cap of $181M, Vringo at $272M, and Renren at $1.2B.

Mobile Growth

The growth of mobile games, paid or freemium, is linked directly to the explosive growth of smartphone use worldwide. A Gartner study states that in the third quarter 2012, smartphones represented almost 40 percent of all mobile units sold worldwide, a 47 percent increase from one year earlier.

The smartphone market is dominated by Apple and Samsung, with both companies together controlling 46.5 percent of the smartphone market. Samsung's mobile phones sales in particular continued to accelerate, totaling almost 98 million units in the third quarter of 2012, up 18.6 percent year-on-year. Nokia continues to sell enough units worldwide to garner attention, but its overall market share has slipped to 19 percent compared to 24 percent for the same period last year.

Adapting the Freemium Strategy to the Psychic Industry

Psychic Friends Network may not produce games, but they are in the entertainment content business. In the past, the company's sizable content offering could only be consumed by customers calling 1-900 numbers and speaking live to psychic readers. In today's mobile-connected world, customers want to enjoy their horoscopes and personalized psychic consultations from anywhere, on the device of their choice and in many forms (text, audio chat, video chat and more).

To address this new reality, the company plans to offer its new branded mobile apps free for download with a special free text psychic reading introductory offer.  

"I expect that the new PFN mobile app will rival, and perhaps even surpass, PFNI TV and more conventional online revenues within a very short order," Lasky said. "And our free-message offers will jumpstart that success."

In addition to branded mobile apps offering daily horoscopes and live connections to psychic readers, PFNI will also offer other mobile services that do not require an app:

  • Premium SMS text services. Through this type of paid service, the company will offer a daily horoscope sent to a customer's mobile phone.
  • Live psychic advice. Customers can send a SMS text to a live psychic, such as, "What do you think about my new job?" They will instantly receive a text reply (at $.99 per text).

These premium SMS services can be directly added to the customer's mobile phone bill (also known as carrier billing). This lowers the barrier to purchase, as the customer does not have to key in a credit card on their phone.

Freemium Is Not for Every Company

Dropbox, LinkedIn, Pandora and Skype are notable companies that gained success by giving away their products and services free to build a customer base. Skype was acquired by Microsoft for $8.5B, LinkedIn was worth over $9B after its first day of trading, Pandora debuted with a $3B IPO, and pre-IPO Dropbox raised a whopping $250 million on a $4 billion valuation.

According to Simon Hill at Digital Trends, the big freemium successes have managed to combine good conversion rates with high retention, so that people continue to play and purchase content for weeks, months or even longer.

The freemium approach, however, doesn't make sense for any business that can't eventually reach millions of users. Typically only 1% or 2% of users will upgrade to a paid product, according to David Cohen, founder and CEO of TechStars, a start-up accelerator since 2007.

Psychic Friends Network is no stranger to large customer volumes with high conversion and customer retention rates. At the peak in the 1990s, PFNI had more than 10 million unique customers, with an impressive 25% conversion rate over 1-900 phone numbers and an even more impressive 75% retention. The average PFNI customer spent $350 per year, with 80% spent in the first six months.

PFNI is about to re-launch with a newly developed "version 2.0" technology platform. The centerpiece of this re-launch are the company's new mobile apps, which combine the best of PFNI's past proven conversion methods with the latest freemium revenue strategy. Given their past track record, the company is fully expecting to re-dominate the nearly $2.5B psychic market.

About the Psychic Friends Network, Inc.

The Psychic Friends Network, Inc. (PFNI) is a marketing and entertainment company providing on-demand psychic advice as well as daily and weekly horoscopes. PFNI connects professional live psychic readers with customers via telephone (mobile and landline) and through their newly developed state-of-the-art online platform enabling interaction with video chat, voice or text chat. During the 1990s, PFNI pioneered the psychic industry with memorable television/radio marketing and infomercials. PFNI is re-launching the original brand on a new technology platform that will capitalize on the latest social media and video technologies to connect psychics with consumers.

To learn more about PFNI, visit PsychicFriendsNetwork.com

About Stocks Digest

Stocks Digest monitors the best stock ideas and stock recommendations from Wall Street's top advisors - with expert analysts identifying today's bull-market leaders and tomorrow's top stock ideas. The review process includes hundreds of the finest financial newsletters and research publications, before screening to deliver the ideas with superior profit potential.

To sign up for a free Stocks Digest subscription, visit http://www.StocksDigest.com.

Disclosure: StocksDigest.com is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell any securities. This is a compensated press release. Please visit our website for complete risks and disclosures: http://www.StocksDigest.com.

Forward Looking Statements

This press release may be deemed to contain forward-looking statements, which may be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the re-launch of the Psychic Friends Network brand, PFNI's business plan, website and mobile applications. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, PFNI's ability to successfully re-launch its brand and operations and other risk factors set forth in PFNI's current report on Form 8-K dated March 30, 2012. Any forward-looking statements in this release are based on limited information currently available to PFNI, which is subject to change, and PFNI will not necessarily update the information.

http://www.stocksdigest.com

SOURCE Stocks Digest

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.