WIRELESS AND MOBILE NEWS

Versaly Entertainment, showed results of its first half of 2009 sales for video downloads in the United States. Versaly's video-on-demand clips are distributed through its Vmbc.tv mobile video syndication network. The results clearly show subscription downloads outperforming pay-per-downloads.

Of all the mobile video storefronts in the Vmbc.tv syndication network, those offering unlimited downloads for a fixed monthly subscription fee are downloading about 25 times more video clips compared to those offering individual pay-per-download models. In addition, overall revenue from unlimited video download subscriptions are outperforming individually purchased downloads by almost a factor of 20x. The price of a monthly subscription is somewhere between 3-5 times that of a single download. The results show subscription plans clearly add tremendous value to next-generation mobile video consumption and are strong growth drivers.

It appears that many mobile video consumers who sign up for fixed monthly fee subscriptions did not download 3-5 videos in a month and would have paid less for their monthly consumption if they had simply purchased their video on an a-la-carte basis. This may be a single monthly anomaly, or another explanation is the "financial security" factor - the consumer not thinking about the cost of each video view and knowing their wireless bill will be the same every month, regardless of their consumption. Vmbc.tv has seen overall viewership increase and we believe as the market matures, consumers will continue to increase their video consumption and the cost-effectiveness of the subscription model will be realized.

Overall, the Vmbc.tv mobile video syndication network, that includes video downloads and streaming video-on-demand programming, has seen an increase of about 60% in views in Q2-09 over Q1-09. The data was aggregated from Vmbc.tv's 20+ video distribution partners.

Matthew Feldman, president and CEO of Versaly remarked, "I am pleased at Vmbc.tv's growth over the past 2 years and continue to be optimistic in the growth of both streaming video and downloadable video products for the US market. They both have a long-term place in the market. Vmbc.tv's mobile video syndication network is as strong as ever."