Game strategy: Snap TV produces video games that run on DVD players instead of expensive consoles.JUST about every kid, it seems, loves playing video games See video game console. . But not every parent can afford the $300 price tags that the best videogame systems like Sony s PlayStation 3 and Microsoft's Xbox carry, not to mention the games themselves. Enter Snap TV Inc. The small Santa Monica-based company is trying to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the popularity of the game consoles See video game console. by producing video games that play on regular set-top DVD players A stand-alone device that plays DVDs. It contains a DVD drive and the electronics to decode the digital video. The device may play only manufactured DVDs, or it may be able to play DVD-R, DVD-RW and DVD+RW discs. DVD players are cabled to a TV or home theater system for display. . The games are played using the DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. remote, without added converters, adapters or additional hardware. The first four Snap TV games launched last year and sell for a comparatively inexpensive $24.95 in outlets including K-Mart, JC Penney and Barnes & Noble. This year the company has 15 games selling in retailers' toy aisles, and by year's end will have more than 30. "For us, the format is the way in," said Snap TV founder Nicholas Wodtke, a former Sony executive. "DVD is so prolific--it's in the living room, the kids' room and the backseats of cars. Other people see just a DVD player; I see a game console." The concept isn't foolproof, however, and the challenge is profound: many industry observers believe that the popularity of the DVD as a format has peaked, and that it will soon by replaced one of the myriad emerging delivery platforms. "We don't want to sell any new technology; it's very hard to get people to adopt," said Jason Tenenbrown, Snap TV's director of marketing. "There are three (new) consoles coming out, they are very expensive and we don't want to compete with that." Video on demand, wireless and broadband are all seen as potential successors to the position of the DVD's current position as the primary delivery system. "The DVD format See VOB and DVD. is still selling, it's well-penetrated and there's still plenty of time," Tenenbrown said. Wodtke is aware that the clock may be ticking ticking a coat color pigmentation pattern in which hairs of one color are distributed in small groups throughout the background color, e.g. Australian cattle dog. Called also speckling. on the demise of DVD, and is counting on revenue from his firm's current offerings to help it access other formats, in time. To ensure longevity, Wodtke is developing more in-house content and presently looking to distribute Snap TV content through video-on-demand platforms. He said the company will announce a major partnership in the next month. Content is key Snap TV's technology is nowhere near as advanced as that of the more expensive consoles, but the company's goal is simple: produce targeted content that is more attainable for the average consumer. "We are a content company more than a technology company," Tenenbrown said. Its games are primarily multiple choice questions or children's puzzles. They can be solved with a limited number of possible answers using the up, down, right or left options on a standard DVD remote control. The offerings are divided into three categories: kids, sports, and general entertainment/trivia. In the kids' category, Snap TV targets 6- to 9-year-olds, younger than the typical PlayStation or Xbox crowd. The games have been developed with some high-profile partners. Major League Baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation). Major League Baseball (MLB) is the highest level of play in North American professional baseball. , soccer's FIFA FIFA International Association Football Federation [French Fédération Internationale de Football Association] FIFA n abbr (= Fédération Internationale de Football Association) → FIFA f and the National Collegiate Athletic Association National Collegiate Athletic Association (NCAA) Organization that administers U.S. intercollegiate athletics. It was formed in 1906 but did not acquire significant powers to enforce its rules until 1942. Headquartered at Indianapolis, Ind. are all licensees. Snap TV has also partnered with educational outfits such as global children's publishing, education and media powerhouse Scholastic Corp. and its entertainment and media division, Scholastic Media. The DVD games, designed to develop children's learning skills, are based on some of the popular Scholastic properties, including "Clifford the Big Red Dog" and "I Spy I spy is a guessing game usually played in families with young children, partly to assist in both observation and in alphabet familiarity. I spy is often played as a car game. ." Maggie McGuire, director of Scholastic's Interactive Media division, said Snap was a good match for her company because the company is both creative and aggressive in its market space. "Snap TV dedicated all of its resources to this," she said. "They are staking a claim and putting a lot behind it in the space." Because the DVD video game space is still emerging, McGuire said it was a gamble for the company. She admits the jury is still out, but appreciates Snap TV's singular mission. "All the other business that are trying to get into this arena, like Mattel Inc. and Hasbro Inc. have other business areas," McGuire said. "So this wouldn't be their only thing, but rather one of many, many product lines." Snap's opening Wodtke was an early convert to interactive television and that was part of his motivation for leaving Sony and seeking Snap TV's niche. "I saw that cable was moving so slowly in that area, and that there were very few digital cable households," he said. "That's when the penny dropped." Wodtke founded the company in 2002. He got the operation up and running with private equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. and venture capital from New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of investment bank Arnold & S. Bleichroeder Holding Inc. and European firms MediaWin & Partners and Berlin Ltd. The company's revenues are under $10 million, but the game maker has jumped from four full-time employees in 2003 to 20 last year. Wodtke said Snap TV is "well funded" and won't need to raise more capital in the near term. He also said the company will have a positive cash flow by next year and that there are no plans to take the company public anytime soon. It took about three years for the company to develop and perfect the technology. The company's major competitor is Scene It, a larger Seattle-based outfit owned by Screenlife Inc. that Wodtke describes as the "gorilla gorilla, an ape, Gorilla gorilla, native to the lowland and mountain forests of western and central equatorial Africa. It is the largest of the apes, the males reaching a height of 5 to 6 ft (150–190 cm) with a 9-ft (144–cm) arm spread. in this space." Scene It launched in 2001 and has partnerships with major studios including Fox, Disney and Warner Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . and has released DVD games including "American Idol-All Star Challenge," based on the TV show. Wodtke said Snap TV's advantages over competitors like Scene It include lower prices (most Scene It games retail for about $33) and the company's Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, location, which affords it the ability to draw from the large pool of potential employees with experience in the entertainment field. "From a company culture perspective, we're young and motivated," Wodtke said. "There's so much talent here in L.A. that it's a great resource for us." Snap TV Inc. Year Founded: 2002 Core Business: Creating and distributing video games that can be played on DVD consoles Employees in 2005: 20 Employees in 2006: 25 Goal: To dominate the inexpensive DVD video game market and move gradually to other delivery formats Driving Force: Providing low-priced educational video games By ANNE RILEY-KATZ Staff Reporter |
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