Reviewing strategic options for profitable and growing unit
TORONTO, Sept. 28 /CNW/ - iseemedia Inc. (TSX-V: IEE), a leading provider of rich content adaptation and delivery solutions for mobile applications today provided a business update on its RealBiz360 subsidiary as it reviews strategic alternatives for the profitable and growing unit. RealBiz360 is a leading provider of immersive imaging technology and solutions that enable fast and efficient high-resolution imaging, panoramic viewing, and image interaction to make real estate properties 'come alive' on the web. The subsidiary has focused its efforts on the US real estate industry where on any typical day, more than two million Americans take a virtual tour, and global digital camera OEM licensing where it has established a leadership position with several world renowned brands.
Market for Virtual Tours in Real Estate Industry is Growing Rapidly
According to a 2007 National Association of Realtors (NAR) survey of US home buyers and sellers, more than eight out of 10 buyers used the Internet to look for a home, and 90 percent of those people reported that virtual tours were useful in their search. A 2008 NAR survey reported that twice as many consumers found the Internet more useful than an open house.
The recent US real estate collapse has created an increased demand for online real estate marketing solutions that help sellers unload financially distressed properties by allowing buyers to take virtual tours prior to visiting a site in person. The sheer volume of properties available for sale and the length of time on market have made it an imperative to use online strategies for effective selling. RealBiz360 provides the industry's only high definition virtual tour solution that provides hands-on viewing experience for consumers and is the first company to automatically create video from virtual tours and slideshows for distribution via YouTube. More than 38,000 YouTube real estate tours have been taken since the service went live three months ago.
RealBiz360 Business Model Focused on Recurring Revenue Strategy
RealBiz360 is executing a three-pronged strategy to grow profitable and
1. The RealBiz360 business model is focused on achieving broad
distribution of its immersive imaging solution through licensing
arrangements with key leading real estate organizations and their
franchisors which allow their agents and brokers to access more
advanced immersive virtual tour services for a nominal fee. All
imaging and other online marketing tools are available as a 'pay as
you go' or monthly subscription service.
2. The company also 'co-labels' its virtual tour solution suite with
other online service providers to real estate and other markets and
shares licensing revenues as generated by the third-parties.
3. The company also licenses its virtual tour technology to camera
manufacturers to embed its basic 360 degree photo stitching
functionality to create instant real estate panoramic tours. Digital
cameras from leading manufactures ship this capability onboard which
allows agents to get into virtual tours easily without any training.
The company is paid a royalty per camera shipped from manufacturing.
RealBiz360 Monthly Subscriber Base Grows 100% in the Past Six Months
The subsidiary's online service has over 21,000 active subscribers reflecting a 100% growth rate in the past six month. The firm's not yet announced agreements will add more MLS customers this quarter as well as corporate enterprise agreements that will provide access to a potential 400,000 real estate agents over the course of the next few months. The subscriber base is expected to grow dramatically as the agreements involve deploying the first ever fully automated virtual tour system with direct content feeds from companies such as Century 21, ERA, Coldwell Banker, and Keller Williams, so that agents will have little work to create and distribute virtual tours on the web. The company expects to release news about these agreements in the coming weeks. The firm's current subscriber base is already generating seven figures in revenues which are expected to grow at minimum 50% next fiscal year.
RealBiz360 OEM Licensing Generates Profitable Recurring Revenue
The company's OEM licensing agreements with Kodak and Pentax have resulted in seven-figure annual profitable revenues. The multi-year agreements provide a sound financial base with a recurring revenue stream for RealBiz360 to continue its expansion in real estate applications.
"The worse the real estate sector gets the more attractive our solutions become to all participants in the real estate industry, from sellers and buyers, to bankers and lawyers," said Anthony DeCristofaro, President and CEO, iseemedia Inc. "RealBiz360 has reached a critical inflection point with an annual revenue run rate of $2.6 million with profits and the time is ripe for us to seek a strategic partner to fuel its growth more rapidly at a time when the real estate industry, the world over, is seeking innovative solutions to expedite sales."
iseemedia Inc. is a software development company focused on the commercialization of advanced, rich content adaptation and distribution solutions for Web and wireless applications. The Company maintains a portfolio of issued and pending wireless and imaging patents that support authoring, streaming and interactive viewing of content. iseemedia is publicly traded on the TSX Venture Exchange (Symbol: IEE).
(C)2009 iseemedia Inc. All rights reserved. iseemedia and iseedocs are either Registered Trademarks or Trademarks of iseemedia Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners.
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with iseemedia's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect iseemedia's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Filing Statement filed on March 31, 2009 with the regulatory authorities. iseemedia assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE ISEEMEDIA INC.
For further information: For further information: David Berman, CFO, iseemedia Inc., Tel: (905) 761-5293, firstname.lastname@example.org