Sources inform ''Globes'' that, in a few days, Targetize Innovative Solutions Ltd. will jointly launch a wireless music content search service, to be called AnySong, with Sony BMG Music Entertainment, Universal Music Group, Warner Music Group Corp. (NYSE:WMG), and Dutch wireless operator Royal KPN NV (NYSE; AEX; XETRA:KPN).
The companies will launch the service in the Netherlands in a few days. The service will search the three companies’ music databases using an interface developed by Targetize. This is one of the company’s first major agreements since it was founded eight years ago, although it began focusing on wireless only recently. A month ago, the company signed a contract with Argentinian newspaper “Lanacion” to provide its search-and-discovery application for sports content.
“Globes” reported in May that Targetize was negotiating with a large music content company. The company confirmed that that these negotiations led to the launch of the new AnySong service. The venture began as collaboration in the Netherlands between Targetize and Universal Music Group, which brought in SonyBMG, Warner Music Group, and KPN. Universal Music Group is seeking to expand the venture to more wireless operators.
Targetize has developed a user-friendly and convenient Internet search and discovery application for cellular phones. The company has already launched two products, one for music and one for sport, and is now developing a news product. In principle, it is possible to use the application to search via a cellular phone for any Internet content in the defined field, not just content on the websites adapted for wireless surfing. However, under Targetize’s business model, surfing will be restricted to defined databases so that payment can be collected.
The AnySong service now being launched will enable KPN subscribers to use their cellular phones to search a joint database of the three music companies, Sony BMG, Universal Music Group, and Warner Music Group that contains 250,000 songs, ringtones, clips, live shows, and so on.
Targetize did not disclose how much revenue it expects from the contract. KPN has 17.2 million subscribers. Assuming that the price of a premium wireless service in Europe is €1 per download, and that the average subscriber downloads three clips or songs a year, and assuming that Targetize obtains 15-20% of the revenue from users, its revenue from this contract is $1.5 million a year. Revenue is expected to grow if the service makes it easier for cellular phone subscribers (including adults and technophobes) to surf the web and download songs and ringtones, and if more wireless operators join the service. Targetize can also expect revenue from advertising that accompanies the service.
Targetize was founded in 1998 by CTO Guy Ernest, and recently raised $1.5 million at a company value of $10 million. It is now raising an additional $5 million at a higher company value. The company’s CEO is Avichai Levy, a founder of TTI Team Telecom International (Nasdaq: TTIL).
Universal Music Mobile country manager Netherlands Ritchie Kremer said, “Universal Music selected Targetize for two main reasons: rich user experience, on the basis of its user-friendly interface and personalized download of relevant content; and the ability to quickly and efficiently make the huge music database available for cellular subscribers, without the need for conversion, or the building of complex and costly databases.”
Published by Globes [online], Israel business news - www.globes.co.il - on July 26, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006