news alert ( cinm ) launches new product with t - mobile cinm highlights
about cinm
a relatively small percentage penetration rate could possibly translate into millions of dollars of revenue to cinm .
cinemaelectric , inc . launches pocketcinema video on mobile phones with t - mobile europe 40 + million subscribers
hollywood , california ? march 15 , 2004 . cinemaelectric , inc . ( otcbb : cinm ) announces the launch of its pocketcinema mobile video content offerings via leading operator t - mobile in the uk , germany , netherlands , austria and czech republic , a total market of over 40 million subscribers .
cinemaelectric is a hollywood - based producer of mobile entertainment and services . pocketcinema is a downloadable motion picture that can be played on many nokia , sony ericsson , siemens and other mobile phone terminals . the deal includes all current cinemaelectric video content lines , such as action sports , electric catwalk , movie messages and hollywood girls . the video is downloaded via t - mobile ' s " t - zones " service and can be collected and re - played on select gprs handsets , and shared with friends via mms or email . each pocketcinema file is under 90 kb in size . the extremely small motion picture files size is produced using cinemaelectric ' s proprietary dense media format technology . the motion pictures are from 10 to 25 seconds in length , depending on subject matter and frame rate . video prices are currently gbp 2 . 45 in the uk per download and euro 1 . 99 in germany . mobile video phones are in early stages of adoption but sales are growing rapidly and will further accelerate as consumers continue to upgrade old mobile phones for new multimedia color terminals .
cinemaelectric owns what is believed to be the world ' s largest library of formatted multimedia and video content for mobile devices . the company has a special focus on video content for mobile phone playback , both in the current 2 . 5 g environments and into advanced , high - speed 3 g networks .
about cinema electric : cinemaelectric is a wireless services company and a leading provider of multimedia entertainment for mobile devices . the hollywood - based studio ' s product is currently distributed in more than 35 countries in five continents .
website : http : / / www . cinemaelectric . com
about t - mobile : t - mobile international is one of the world ' s leading companies in mobile communications . as one of deutsche telekom ' s four strategic divisions , t - mobile concentrates on the most dynamic markets in europe and the united states . by the end of the second quarter 2003 , more than 87 million people were using the mobile communications services provided by companies in which t - mobile or deutsche telekom have a majority or minority stake .
safe harbor statement
this press release may contain forward - looking statements , including the company ' s beliefs about its business prospects and future results of operations . these statements involve risks and uncertainties . in addition , the factors underlying company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given .
contact : yui yamane
cinemaelectric , inc .
email : investors @ cinemaelectric . com
cinm & # 39 s global distribution network
cinm has built what is believed to be the mobile industry & # 39 s largest multimedia distribution network . in ql , 2004 , the company & # 39 s content and services are expected to be actively distributed in 5 continents and 36 countries ( usa , canada , mexico , brazil , uk , ireland , holland , belgium , france , germany , denmark , sweden , norway , finland , latvia , estonia , lithuania , czech republic , slovenia , croatia , italy , france , spain , portugal , israel , kuwait , india , singapore , philippines , thailand , malaysia , china , hong kong , taiwan , australia and new zealand ) .
operators expected to be offering cinm content in ql , 2004 include at & t wireless , mmo 2 , sprint pcs , t - mobile , nextel , kpn , china mobile , orange , vodafone , csl hong kong , telefonica moviles , tim and many others . many of these distributors first became active for the company in q 4 , 2003 .
cinm & # 39 s distribution network include the top operators , resellers and manufacturers in the mobile industry , including nokia ( global ) , sony ericsson ( europe ) , mforma ( global ) , jamba ( europe ) , musiwave ( europe & australia ) , wireless entertainment services ( europe ) , orange gum ( asia ) , sonera zed ( europe and asia ) , end 2 end ( europe ) , buongiorno ( global ) and others .
revenue & financial plans ( excerpts from 3 / 13 / 04 news release )
cinm & # 39 s potential
based on the continued growth of color multimedia mobile phone sales , and the continuing advancement of billing and delivery technology within the mobile industry , the company makes the following estimates :
the company anticipates total mobile multimedia ( graphics , video and audio files ) revenues ( including content and data fees ) to reach $ 300 million at the end of 2004 . out of that , 15 % of the revenues ( $ 45 m ) are expected to be content fees for services such as 3 rd party audio , videos and graphics , of which approximately 20 % of that amount will be paid to content owners ( $ 9 m ) . the company expects to capture up to 6 % of this market with its video , graphics and application services , despite the expectation that the majority of revenue will be dedicated to audio downloads ( audio ringers ) .
mobile multimedia revenues for 2005 are anticipated to pass the one billion dollar mark catering to an audience of 175 m global users . the company anticipates capturing up to 7 % of this market based on the leverage of its distribution network to attract new popular brands , and the acquisition of companies with complementary technology and business models , provided the company can raise the required expansion capital .
the company anticipates the market will grow by the end of 2006 to more than 250 million " mobile multimedia subscribers " and that graphics , motion mms and video will dominate the industry . the company anticipates total mobile multimedia ( graphics , video and audio files ) revenues in 2006 to reach $ 2 . 8 billion as usage becomes commonplace and sponsored mobile multimedia dominates over the pay - per - download model . out of a total global market of $ 2 . 1 b , it is anticipated that 35 % ( $ 735 m ) will be content services revenue , of which approximately 20 % will be paid to content owners ( $ 147 m ) . the company anticipates capturing up to 8 % of this market in 2006 .
these projections are dependent on the company raising significant operating capital in 2004 for marketing and sales expenses , expanded production , brand licensing , and acquisitions .
summary
cinm was down 50 % on friday on no negative news whatsoever . after the stock market closed cinm issued a news release estimating growth targets for 2004 - 2006 .
watch for dead cat bounce in the days ahead for no other reason than new news and a rebound from a precipitous drop in stock price .
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