Welcome!

Agile Computing Authors: Elizabeth White, Sematext Blog, Janakiram MSV, Jim Malone, Mike Raia

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
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today Telecom Reseller has been named “Media 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. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
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...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
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....
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.