Analyst: Verisign's Mobile Content Forays A Disaster; Needs To Sell Out
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Yeah, that’s a shocker: VeriSign’s mobile content business is “looking like a disaster,” according to a report released this week by American Technology Research analyst Albert Lin, and says that VRSN should sell its content...
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Yeah, that’s a shocker: VeriSign’s mobile content business is “looking like a disaster,” according to a report released this week by American Technology Research analyst Albert Lin, and says that VRSN should sell its content division (that has been the speculation in the industry over the last quarter or so). Kinda harsh in assumptions, but Lin says that VRSN will have flattening in revenues from ringtones, which account for as much as 90 percent of the company’s sales through the Jamba and Jamster sites. The market will continue to explode in usage, Lin said, while revenues decline and eventually disappear as users learn to create their own ringtones on computers, digital music players and mobile phones (that’s what I meant by assumption…this is not happening anytime soon). But he goes on to say: “(The) mobile ringtone industry has peaked and will likely see rates of growth decline (and then go negative) as activity will be concentrated in convenience-based sales that are generated from the phone (spontaneous purchase) as consumers quickly figure out almost any tone that is commercially available can be ripped and taken without charge,” wrote Lin. “We believe getting out of the ringtone business would be a positive move (for VeriSign) and we would reconsider our stock opinion.”
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Highlights:
* Mobile Pokemon Games In The Works, For Japan * Motricity Announces $40 Million Funding; Tots Up $120 Million Thus Far
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