Another great paragraph from MD&A This says a lot as to how the company plans to increase revenues going forward. Great potential!
In October 2013, TransGaming launched the world’s first video-advertising based business model for video games with Philips. GameTree TV is being rolled out on Philips TVs globally but on a country-by-country basis. The early adoption and growth in users is very encouraging, particularly when considering that more countries will be supported in the months to come. Furthermore, management expects that the growth curve will be further accelerated by the addition of users from the launches of Samsung and Toshiba in January 2014. The games played on GameTree TV on televisions sold by the OEMs are free to the user but a video pre-roll with an advertisement is run prior to the launch of a game. The system has been intelligently designed to deliver ads intermittently, and with relevance, so as to balance the need to generate revenue but also preserve the consumer experience. For these ads, TransGaming receives $20 to $40 per thousand ad impressions.
It is too early to comment on the magnitude of an ad-based revenue model, however, management believes that its GameTree TV footprint can be a significant ad delivery platform. In addition, the Company plans to introduce subscription and in-game micro-transaction based revenue models as the e-commerce and billing systems on TVs evolve.