|By PR Newswire||
|December 12, 2012 08:03 AM EST||
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.
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.
SOURCE Stocks Digest
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 28, 2016 07:00 PM EDT Reads: 1,620
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 28, 2016 06:45 PM EDT Reads: 4,145
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
Sep. 28, 2016 06:30 PM EDT Reads: 3,094
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Sep. 28, 2016 06:15 PM EDT Reads: 265
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 28, 2016 06:00 PM EDT Reads: 1,767
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Sep. 28, 2016 05:15 PM EDT Reads: 229
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 28, 2016 05:15 PM EDT Reads: 231
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, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 28, 2016 05:00 PM EDT Reads: 1,719
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Sep. 28, 2016 04:45 PM EDT Reads: 366
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 28, 2016 04:30 PM EDT Reads: 2,806
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Sep. 28, 2016 03:15 PM EDT Reads: 365
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 28, 2016 03:15 PM EDT Reads: 1,310
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 28, 2016 03:00 PM EDT Reads: 3,870
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 28, 2016 02:45 PM EDT Reads: 1,744
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 28, 2016 02:30 PM EDT Reads: 2,926
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "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 Interne...
Sep. 28, 2016 02:30 PM EDT Reads: 3,329
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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. Meanwhile, 94% of enterpri...
Sep. 28, 2016 02:00 PM EDT Reads: 4,423
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Sep. 28, 2016 01:57 PM EDT Reads: 299
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.
Sep. 28, 2016 01:23 PM EDT Reads: 306
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 28, 2016 01:00 PM EDT Reads: 1,114