Handango Enables Smartphone Content Providers to Increase Revenue through Subscription Billing Services
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ORLANDO, Fla., March 27 - (CTIA WIRELESS 2007, Booth #4748) - Handango, the world's leading provider of smartphone content, today announced successful results of its ongoing subscription billing services. Handango is helping more mobile content providers than ever adopt subscription-based billing models, a strategy that is quickly gaining popularity as evidenced by an almost 600 percent lift in subscription revenue through Handango sales channels from 2005 to 2006. By the end of the first quarter of 2007, Handango projects a quarter-on-quarter earnings increase of 37 percent.
Through the use of Handango's proprietary Mobile Billing Application Programming Interface (API), top content providers have seamlessly integrated subscription billing methods into their business models, resulting in a continuous increase in sales and revenue since launching their products through Handango.
Handango's Mobile Billing API enables content providers to build on-device subscription management into their products. Capabilities include:
o Establishing a billing frequency (monthly, quarterly or annually)
o Creating or cancelling a secure subscription plan through the Web or
directly from the device
o Creating and tracking unique subscriber IDs
o Storing and managing subscriber account information
o Checking status of a specific subscriber in real-time
Ideal applications for Handango's subscription billing functionality include those with on-demand content that periodically integrate information from other sources, such as news feeds, weather, financial data and multiplayer games. For example, The Weather Channel uses Handango to manage recurring subscriptions for Handango customers who receive local weather updates directly on their smartphones.
"Subscription services are an integral part of our mobile strategy," said Traci Van Deventer, director of mobile products at The Weather Channel. "With Handango handling some of our subscription billing, our smartphone subscribers are automatically billed monthly or annually for The Weather Channel application, allowing us to maintain a long-term customer relationship instead of offering a one-time download. It's a smart business model for us because customers rely on The Weather Channel for information that is constantly updated and easily accessible."
Companies including Concrete Software, Inc.; RealDice, Inc.; Cerience Corporation; and Webmessenger, Inc. have integrated Handango's Mobile Billing API directly into their applications. Unique identifiers coupled with secure DRM encryption allow the companies to verify the status of a customer's subscription against Handango's server each time the application is accessed.
MobiTV, the industry-leading mobile and broadband television and music service provider, created an application that allows consumers to access live television just like at home, and it quickly became one of Handango's best selling titles. This type of application with dynamic content lends itself well to a subscription-based model.
"Handango's no-hassle billing solution allows our subscribers to watch their favorite television shows without worrying about payment options," said Jason Taylor, worldwide director of corporate communications for MobiTV. "I think we'd all rather be watching our favorite primetime TV shows than worrying about paying another bill."
Handango's subscription-based content sales in Q4 2006 and Q1 2007 exceeded the previous seven quarters combined. Handango reports that content providers can rely on an average of 8-12 months of revenue per subscription application download, which typically generates more lifetime revenue per customer when compared to one-time application purchases.
"Subscription billing is an important part of our commitment to continuously improve the consumer experience," said Randy Eisenman, chief executive officer of Handango. "With the significant rise in mobile commerce and service-fed applications, we see a clear indication of increased consumer confidence in mobile applications and billing. Offering a subscription plan that content providers can individually manage is great for the consumer but even better for content developers who can now benefit from a recurring revenue stream."
For more information on Handango's subscription billing services visit http://handango.com/mobilebilling.
About Handango
Handango is the leading provider of smartphone content globally. Leveraging its network of more than 16,000 content partners and its vast distribution network, Handango seamlessly delivers the smartphone marketplace to millions of consumers on the Web and from the device. Handango's market-leading content delivery platform, Handango AMPP, is the platform of choice for numerous mobile industry leaders including Microsoft, Nokia, Samsung, RIM, HP, Verizon Wireless, T-Mobile, Cingular Wireless, Telefonica Moviles and AOL. By delivering intuitive and compelling consumer experiences, Handango has become the trusted source for millions of smartphone users around the world. For more information, visit corp.handango.com/.
Source: Handango
CONTACT: Karen Blondell of Abelson Group, +1-310-325-6405, karen@abelsongroup.com, for Handango
Web site: http://www.handango.com/
