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Amp'd mobile ramping up cell phone sales with videos.


Feisty Amp'd Mobile Amp'd Mobile was a mobile phone service launched in the United States in late 2005. The company was a Mobile Virtual Network Operator and operated on the Verizon Wireless CDMA EV-DO network. Its primary non-Venture Capital investors were MTV Networks and Universal Music Group.  Inc. is pedaling as fast as it can to capture the 18- to 24-year-old market it believes will drive the burgeoning mobile phone video network sector.

With a subscriber surge, an advertising blitz, several notable content deals and the first phone character to cross over into TV, Amp'd Mobile has built up a head of steam in the past few months.

But in an emerging and fluid market jammed with goliath and aggressive rivals, Amp'd Mobile of Westwood will have to avoid crashing like the bicycling boy on the daredevil ramp in its TV commercials.

"Look at the revenue," trumpeted Amp'd Mobile's Chief Executive Peter Adderton. "If we stayed static today, we would do over $100 million in revenue this year, but if we grow to 300,000 or 400,000 subscribers, we'll do well over several hundred million in revenue."

Part of the concern among industry watchers is that they can't look at the revenue, or much else, for that matter. As a private company, Amp'd keeps most of its figures--with the exception of glossy subscriber numbers--under wraps.

"It's still too early to tell," said Rafat Ali, who edits the Moconews.net blog that follows mobile phone content companies. "The biggest MVNO (Mobile Virtual Network Operator) A reseller of wireless services. MVNOs do not own licensed spectrum and typically do not have any of their own wireless network infrastructure.  (Mobile Virtual Network Operator A Mobile Virtual Network Operator (MVNO) is a company that provides mobile (sometimes called wireless or cellular) telephone service but does not have its own allocation of the radio frequency spectrum nor all of the infrastructure required to provide mobile telephone service. ) is Virgin Mobile, which just announced 4 million subscribers and that took them a long time. One hundred thousand is just a drop in the bucket."

The keys for the company are landing subscribers, maximizing the return on them and hanging onto them over the long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. . So far, the company appears successful on the first two.

When they launched late in 2005, Amp'd Mobile executives set a goal of 100,000 subscribers by the end of last year, which they met easily. They also point to the company's average monthly revenue per subscriber, which is more than $100. That's more than double the average from any other mobile phone content company. The price for Amp'd phone service and content access is based on minutes used monthly. A thousand minutes costs $50 per month, for example, unlimited usage is $150 per month.

Original content from Amp'd was popular, accounting for 39 percent of all mobile video downloads in the fourth quarter, in part because of popular shows like "Lil Bush: Resident of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ," "Sucks Less With Kevin Smith Sucks Less with Kevin Smith is a show done in partnership with MTVu, an MTV channel aimed at college students. The show airs weekly on MTVu, on Amp'd Mobile phones, and on MTVu.com. It is "the show for people who have way better things to do with their weekend than get laid. " and live coverage of supercross racing and Ultimate Fighting Championship This article covers the organization itself. For the inaugural event which went by the same name, see UFC 1.

Ultimate Fighting Championship (UFC) is a U.S.-based mixed martial arts (MMA) organization, currently recognized as the largest MMA promotion in the world.
 mixed martial arts For the fighting styles that combine different arts, see .
Mixed martial arts (MMA) is a combat sport in which a wide variety of fighting techniques are used, including striking and grappling.
 bouts.

The company's "Lil Bush," from writer and producer Donick Cary Donick Cary is an American television writer for The Simpsons. He has also written for Just Shoot Me! and Complete Savages.

He is the creator, writer, and director of Lil' Bush
, will become the first original show to make the transition from mobile broadcast to TV later this year on Comedy Central.

Amp'd has content deals with all of the broadcast networks, cable's ESPN ESPN Entertainment and Sports Programming Network , Fox Sports and E!, as well as Universal Music Group and a handful of production companies including Bunim/Murray and Mark Burnett. They recently cut a deal to create an original series specifically for mobile phones with MTV MTV
 in full Music Television

U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business.
 and another content deal with the National Basketball Association National Basketball Association (NBA)

U.S. professional basketball league. It was formed in 1949 by the merger of two rival organizations, the National Basketball League (founded 1937) and the Basketball Association of America (1946).
, too.

While the subscription numbers at Amp'd are dwarfed by the major mobile services offered by Virgin Mobile USA Virgin Mobile USA (NYSE: VM) is a cellular telephone company that is a joint-venture between Sir Richard Branson's Virgin Group and Sprint Nextel. Virgin Mobile USA uses Sprint's CDMA-based Personal Communications Service (PCS) network.  Inc., Sprint Nextel, Cingular Wireless and Verizon Wireless, Adderton believes that at this point, that can be an advantage for Amp'd with its youth niche strategy.

"The big carriers can't be specific," he said. "We've got a pretty good understanding of what it's going to take to get the 18- to 24-year-olds."

In terms of content delivery, Amp'd is facing competition from smaller content providers such as Sky Dayton's Westwood-based Helio LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
, Sherman Oaks-based GoTV Inc. and Emeryville-based MobiTV.

Adderton doesn't sound worried.

"GoTV and MobiTV are aggregators of other people's content," he said. "You have to be an Amp'd customer to get the Amp'd Live service."

Helio offers targeted content specifically to the same youth market that Amp'd targets, but is a little pricier.

"Amp'd is cheaper," said Ali. "The difference is coming down though, because Helio lowered all of its prices. One is saying 'we're high end' and the other is saying 'we're mass distributed, but we're edgy.'"

Adderton, 39, has developed something of a reputation for edginess--and success--himself. He's an exuberant Australian and helicopters in regularly from his Irvine home to the firm's Westwood offices, where 320 workers are employed.

Prior to landing at Amp'd, he founded Australia's Boost Mobile phone company in 2000 and built it up into a brand with 1.5 million users and annual revenues of more than $500 million.

"He had success with Boost," said Ali, "but he's now really trying to replicate that at Amp'd, which is more, mainstream than Boost, which focused on an urban audience."

International markets will be on the front burner at Amp'd this year.

The company is planning to open an office and a major launch in Japan in March, in partnership with Tokyo-based KDDI Corp., which claims more than 20 million Japanese cell phone-users.

"Amp'd Live will be available to all of KDDI customers," Adderton said. "It's a media portal. You'll be able to go onto the KDDI file and onto the Amp'd Mobile file."

The company also plans to launch in Canada later this year.
COPYRIGHT 2007 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:NEWS & ANALYSIS
Author:Cox, Dan
Publication:Los Angeles Business Journal
Date:Jan 22, 2007
Words:854
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