RE:RE:RE:RE:RE:RE:RE:RE:RE:Inside Out in 3D Coming November 3rd to 3DGO!Polebrook-Hedge, I also dig and scrap steady and never heard or seen anything about 20% from the Company, the only thing I can recall is a post from Atomicboy of Sept 30th mentioning 20-20, it was too far fetched for me.
While there were a few good things in the CC, the main ones were bland and mixed.
Graphs and charts are great when revenues and projections show great advances or noticeable improvements.
We keep talking of the millions of TVs available in one hand and show pathetic results on the other.
The more you read the CC and the Q&A the more you realize it.
Hedge I still disagree with you and Routhier as to the LG launch and when to start counting percentages.
As far as your discussion about LG launching I see it differently.
Technically it was announced via tweet and then PR at the end of December 2014.
Even with a:
6% the first week.
34% in mid January.
63% February 9th.
100% March 25th.
Those are considerable numbers when you talk 2.000.000 TVs plus.
So I don`t buy the formula saying that we were not fully launched till March 25th and start counting from there. Again IMHO.
Today another down day closing at 0.11 when we are so close to another PP.
Can`t blame in on the Markets.
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From the CC:
The good news is that this trend has carried over in the first quarter of 2015. And although we will not be able to reach our goal of 50,000 users yet, the growth has continued and has exceeded what had been achieved in Q1 of both 2014 and 2013.
So, at the end of fiscal 2015, there were 28,112 registered users to 3DGO!, and the most interesting thing is the acceleration that can be observed in the last quarter, in line with what we had communicated during our last conference call. We know that this is still short of our goal to have 50,000 registered users to 3DGO!. However, our focus has changed from recruiting as many users as we can to recruiting higher-quality users. Yes, we want to grow 3DGO!, but not at the expense of profitability or of the sustainable business model.
We have mainly decided to reduce significantly the on-boarding promotion and readjust our pricing to improve profitability. These decisions have had an impact on the number of new users we can attract, but the ones that we do recruit are more profitable, and will ultimately be better for SENSIO. That being said, we are still targeting 50,000 users in the coming quarters, but more importantly, we are targeting strong growth in the number of rentals, which I will now discuss in more details.
In fiscal 2015, 3DGO! rental revenues were slightly down, generating CAD91,000 compared to CAD94,300 in 2014 -- to 2014. When looking at the evolution of rental revenues, you can notice that it has been similarly impacted by Vizio's decision to stop making 3DTVs, which explains the slight decrease in revenues observed in 2015. However, we have been able to minimize this impact by developing our customer service program as well as communication tools with our registered users in order to create loyalty and stimulate rentals from our existing base. They include email alerts for new releases, better positioning of new movies in the user interface, and much more.
So while we have seen our Q2 and Q3 rental revenues gradually decline compared to the same quarter of 2014, they have not come down as drastically as new registered users because of these efforts. More importantly, we have been able to reverse the trend and for the first time in three quarters, rental revenues are once again up compared to the previous year. This is a new trend and we expect it to continue in the coming quarters, fueled by our summer relationship efforts and the impressive slate of new movies that are coming out on 3DGO!, which I will now discuss.
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Our second priority will be to add streaming devices to give access to 3DGO! on more popular platforms. I can share with you that we are currently in discussions with several device manufacturers and that we are exploring various options which will ensure the best coverage with a business model that works for us.
It means that we may be ahead of when we PR ot but a while yet. IMHO.
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Finally, we are continuing to work on the international expansion of 3DGO! to more territories worldwide with a priority on Europe and Latin America. We have been delaying this launch for some time now, and on the last call, I mentioned a potential launch in the fall of 2015.
Let me reiterate that one of the key conditions for us to launch is to be certain that we will have the marketing support and business model to justify the required investment, namely in terms of content. I'm happy to say that we have made great progress in the last few weeks, and although I cannot announce anything today, we are confident that we will be able to update you very shortly with an official date for the international expansion of the service.
Six days later we announced via PR that we are launching internationally in December, even when you read the answers given to Ralph in the Answers and Questions.
We still have to negotiate with the Studios.
There will be some development costs for the platform for the CMS to put it in Europe and make sure that we have redundancy in servers in Europe so we make sure we don't have any buffering issues. We will not be streaming straight from the US to Europe for sure. So there will be some investments there. But the good news is it's a very, very scalable architecture. So we don't need -- the application was developed internationally, so we don't need to scale that up. We don't need to scale up the CMS. It's another CMS, but it's still the same infrastructure it's running on. So we expect costs to pretty much remain -- there's going to be a slight increase, but it's not going to be anywhere near a doubling or 1.5X. It's going to be a slight increase in operational costs.
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