NEW YORK--()--New Motion, Inc., doing business as Atrinsic (NASDAQ: NWMO), a premier Internet media and mobile entertainment company, today announced that it has formed a joint venture, called Mango Network, with India-based Visionaire Technologies PVT Ltd., to extend the mobile and Internet product portfolio of Atrinsic to the fast-growing, emerging Indian market.
According to the Telecom Regulatory Authority of India:
- The total wireless subscriber base in India stood at 269.3 million at the end of April 2008.
- During March and April, a total of 18.4 million new wireless subscribers were added.
- The Indian market continues to show a trend of over 7 million net subscriber additions per month.
With aggressive rollout targets by operators such as Airtel who plan to expand coverage to rural areas, industry analysts expect the trend of new subscriber additions to continue. Despite the continued record growth during the last 12 months, only 23.7% of India’s 1.1 billion population owns a telephone, suggesting the growth rate for new wireless subscribers will continue indefinitely and likely accelerate. The mobile device as a platform for youth socializing and online social networking is gaining popularity in India, which is underscored by a key trend in the 2008-2009 timeframe of device improvement and more ‘on-the-go’ content.
The Company formed the joint venture with Visionaire Technologies and launched Bid4Prizes, its innovative and popular reverse auction product, to the Indian marketplace. Bid4Prizes allows users to bid via their cell phone to win prizes such as cell phones, LCD TVs and to have their utility bills paid for a year. This has been successfully marketed across online and offline channels.
Atrinsic’s product portfolio combines the power of Internet media with the latest in mobile entertainment, creating an unequalled competitive advantage and the Company believes there is a unique opportunity to capitalize on the explosion in cell phone usage and the sizeable and growing number of Internet users in India by offering them localized products based on Atrinsic's portfolio of products.
Burton Katz, the Company’s CEO, commented, “Atrinsic has built a powerful platform for growth in the United States, and we are excited to leverage mobile and Internet products combined with Visionaire's local presence and strong technical team, to target the rapidly growing market in India. The explosion of IT-related industry in India has brought state-of-the-art technology to millions of Indian residents, leading to rapid acceleration of cell phone usage and a surge in Internet utilization. We are confident that Mango Network is well-positioned to deliver new and exciting products to this growth market, beginning with Bid4Prizes. In the near future, we plan to roll out a localized version of our casual gaming product as well as our mobile marketing platform to enable top-tier global and local brands access to marketing through the handset. Mango Network, in which Atrinsic has contributed eight e-based staff in New Delhi, is forging partnerships with media companies to provide them with white-label and turn-key mobile marketing solutions.”
Mr. Katz continued, “Our strategy of converging PC-based Internet and mobile Internet provides us with an exceptional entry into markets like India where the majority of people access the Internet through their mobile phone. An underlying dynamic of the joint venture has been driven by the 100,000+ organic or 'free' unique visitors per month from India accessing, and interacting with, our content, which we have been able to monetize without additional costs and, therefore, contributes to our highly competitive acquisition model. We expect to leverage our mobile business to drive entry of our network, performance-based ad business to these markets as well. Not only can Mango Network deliver more ‘on the go’ content, it will also be able to leverage Atrinsic’s SEO capabilities combined with media buying in both search and display to deliver additional products and marketing solutions.”
Mr. Katz concluded, “We look forward to working closely with our joint venture partner, Visionaire, to strengthen and expand this relationship with our unique product portfolio. We view this as an important first step towards achieving global acceptance and market penetration and will continue to evaluate joint ventures where we can develop strong local partnerships in emerging, international growth markets.”
About Atrinsic
Atrinsic (NASDAQ: NWMO) (New Motion, Inc. DBA Atrinsic) is one of the fastest-growing digital advertising and entertainment networks in the United States. Atrinsic brings together the power of the Internet, the latest in mobile technology, and traditional marketing/advertising methodologies, creating a fully integrated vehicle for both entertainment content and brand-based and performance advertising. Entertainment content is organized into four strategic services -- digital music, casual games, sweepstakes, and community/lifestyle. Brands include Altnet, a mobile legal music download service featuring original artists, GatorArcade, a premium online and mobile gaming site, Bid4Prizes, a low-bid mobile auction game, and iMatchUp, one of the first integrated web-mobile dating services. Feature-rich advertising services include a mobile ad network, extensive search capabilities, email marketing, one of the biggest publisher networks around at over 8,000 and growing, and proprietary entertainment content. Headed by a team of Internet, new media, entertainment and technology professionals, Atrinsic was founded in 2005 and is headquartered in New York with offices in Irvine, CA, Seattle, WA, and Moncton, Canada. For more information, please visit www.atrinsic.com.
Forward-Looking Statements
This news release includes forward-looking statements, including those regarding the Company’s plan to roll out in the Indian market a localized version of its casual gaming product as well as its mobile marketing platform to enable top-tier global and local brands access to marketing through the handset. These statements are based on certain assumptions and reflect our current expectations. Statements including words such as “anticipate,” “propose,” “estimate,” “believe” or “expect,” as well as similar statements, and statements in the future tense are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance, or achievements discussed or implied by such forward-looking statements. Some of the factors that could cause results to differ materially from the expectations expressed in these forward-looking statements include the following: disruption from the recently completed merger with Traffix, Inc., making it more difficult to maintain relationships with customers, joint venture partners, employees or suppliers; risks related to the successful offering of the combined company’s products and services; the risk that the anticipated benefits of the merger may not be realized; and other risks that may impact New Motion’s and Traffix’s businesses, some of which are discussed in the companies’ reports filed with the Securities and Exchange Commission (the “SEC”) under the caption “Risks That Could Affect Future Results” or “Risk Factors” and elsewhere, including, without limitation, each of New Motion’s and Traffix’s Quarterly and Annual Reports, as filed on Forms 10-Q or 10-QSB, or 10-K or 10-KSB, respectively, and as applicable. Copies of New Motion’s and Traffix’s filings with the SEC can be obtained at the SEC’s website at www.sec.gov. Any forward-looking statement is qualified by reference to these risks, uncertainties and factors. If any of these risks or uncertainties materializes, the operating results of New Motion could suffer, and actual results could differ materially from the expectations described in these forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. These risks, uncertainties and factors are not exclusive, and New Motion undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
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