Last checked at 2 Mar 2009 07:00
Bright Things plc
Trading Update and Distribution Agreement
Bright Things plc is pleased to provide a trading update following the completion of the beta test phase of its product SocialGO and the launch its first subscription based services since the start of this month.
As at 27th February 2009, over 29000 networks had been registered. The Directors are extremely pleased by these numbers, even though a number of networks are single user networks set up by users experimenting with the service. In this regard, of the networks registered to date, over 7,400 are networks with more than a single user. Putting the multiple user networks into context, the Company is pleased to report that as at 27th February 2009 there have been over 750,000 members signed up across those networks. Between them these members to date have uploaded over 1.75 million media items and sent or posted over 2.4 million messages.
From the formal launch of the subscription based service at the start of February, all the established networks have had a further month to upgrade to a subscription service. Whilst the Directors are cautious as to the conversion rates from the free service to subscription so soon after launch, to date, over 250 networks have applied for premium services representing three and a half percent of the registered networks with multiple users. However, irrespective of conversion rates the free networks all represent potential revenue streams for the Company through potential advertising on these networks.
In addition, the Company is seeing a positive number of networks subscribing for optional extras such as increased bandwidth, white labels and member billing all of which provide extra revenue streams. Despite this, the Directors consider it is too early to estimate the proportion of existing and future networks that will take up the subscription service but they are encouraged by the results over such a short period of time. It will be several months before there is sufficient data to establish trends and meaningful conversion rates as it will take some time to migrate existing networks to premium accounts and establish uptake from new networks.
Following launch the Company has also established a sister brand to SocialGO called Zocku which is a premium rate only brand with all the same features as SocialGO but purely for mature content which has subsequently been removed from SocialGO. The effect of this is that following the conclusion of the month long period to upgrade to subscription services through Zocku any mature networks not subscribing will have their networks discontinued and removed which, in the short term, will reduce the total number of networks for the sake of comparing the growth rate of network registrations between current figures and those in the future.
In addition the Company is pleased to announce the signing of a distribution agreement with the Mastertronic Group for a boxed version of SocialGO. The boxed version will be packaged with a CD and printed manual giving tips and advice on how to create an online community. The price of the box version is yet to be finalised, but will be based on a discounted upfront payment in return for a period of Premium service. Continued use of the service after the period will require online subscription. Whilst the Directors consider the vast majority of network sign ups to come via online they believe many potential customers may prefer the traditional manner of buying a box with an easy to read manual as a way of getting going on the creation of a social network. As Mastertronic seek to distribute the boxed product into retailers the Directors believe that the visibility of a pack and ease of access could add useful extra sales for the Company whilst creating some product awareness on the high street.
Dominic Wheatley, CEO commented: 'Whilst it is still very early days we are very encouraged by the early data we are receiving following formal launch. The number of networks being signed up daily remains strong and the percentage of established networks with multiple users upgrading to the subscription service makes us cautiously optimistic for the future of the product. Equally the launch of the boxed product should reap rewards and represent the start of a targeted and controlled marketing plan to take SocialGO to as wide an audience as possible.'
Mastertronic Group is a well established software publisher and distributor with operations across Europe. See www.mastertronic.com. Andy Payne, CEO of Mastertronic said: 'Mastertronic is very excited by the potential of SocialGO. The software is truly impressive and we are looking forward to working with Bright Things to bring the box version to the market. We will explore the possibilities also of OEM deals and other territories outside the UK.'
For further information:
Bright Things plc
Dominic Wheatley, CEO 07976 295 071
Charles Delamain, COO 07884 233 269
HB Corporate 020 7510 8600
Luke Cairns
Rory Creedon
Threadneedle Communications 020 7653 9850
Graham Herring
Alex White