Metatron Inc (MRNJ)

[Bull2Bear99]

I-mobilize has already planned the possiblity of creating its own tablet device

Shareholder Questions Answered-Major Strategies Revealed
Posted on December 31, 2010 by Investor Relations

The Company would like to preface these answers by stating we look to maintain a balance between having transparency and responding to vital shareholder questions in a timely manner, and limiting the amount of information available about our strategies and trade secrets to competitors.

1. What about other platforms?

We have already begun test marketing on other platforms and have sold apps on Android with mixed results. There are problems with fragmentation and maturity within these markets, for a more detailed explanation see this article:

http://www.appleinsider.com/articles/10/12/28/angry_birds_developer_says_apple_will_be_no_1_for_a_long_time.html

The goal is to port our top selling apps to most platforms in 2011, perhaps our entire catalog via a platform trancendent app store similar to “iTunes” but without the hardware limitation. The back-end cloud server system is already developed, and we expect to fully complete the front-end clients next year. We may also adapt different business models to accomadate these other platforms, ie ad supported free apps ect…

2. Marketing of Apps Status?

Marketing of apps through conventional means is not cost-effective for the Company at this level of funding availability. In order to be profitable large ad buys need to be made, and even then there are complications due to the closed nature of the app eco-systems. This is why you don’t see a lot of ads for apps in conventional media yet from any developer. We are however using social media, grassroot and organic methods of getting the word out. For example many of our content partners have customer lists in the millions and we are in the process of leverageing those assets. Further explanation of our unorthodox marketing methods will give away too much to competitors and is not in the best interest of the Company to discuss in our blog. We are still in the early phases of marketing and have a long-term strategy in place that will include conventional media as well.

3. Can you explain the competitive advantage MRNJ has over other developers in this space?

We consider our biggest competitors Apple, Amazon, Google, Hulu, Flo-Tv and Netflix. Currently we differentiate ourselves by servicing content owners that the our competitors miss, for example smaller publishers and production companies. Most of our competitors are fighting for a small segment of A+ content leaving a large amount of less popular content wide-open. Not to mention the fact they don’t fully realize the potential of the app distribution model for content. For example a content owner can have the same content available on web and traditional mobile downloads, yet double his sales by converting to apps without canabalizing their other sales channels. I-mobilize will also be doing regular digital downloads in the near future.

Usually we have Agents that seek out content that fit our strategy, but recently some content owners have been approaching us, as more recognize the huge opportunity in front of them. We actually turn down many requests from content owners that don’t meet certain criteria.

Downloading music and movies is passe to many, but the app expereince is still exciting and interesting to most and this is being proven by the explosion of sales in the app stores. Apps provide the potential for more interaction and customization with content, something the consumers seem to embrace and content owners want to utilize.

Overall its an eductation process of content owners, investors and the market itself. We believe i-mobilize is slightly ahead of its time, but the landscape is changing rapidly and if we execute correctly and obtain enough financing we have an opportunity to leap past many of our competitors.

Primarily because of the size and efficiency of our Company, superior business model and top-notch software, we can potentially offer better royalty rates, faster execution to market and wider penetration in multiple platforms than other companies. Our software was developed by the same team that created the pay-per view software for many digital tv boxes, we have the best and the brightest on tap.

Our competition is fierce, but we believe each have an achilles heal that will allow us to penetrate and capture a significant portion of the digital distribution marketplace, with the end game being major content owners ourselves and the #1 digital content distributor.

For example, as fantastic as Apple is, and we love Apple btw, content is locked into their hardware, for now this is great because it works the best…but in the near future many others will catch up and hardware will become less relavent. Since they are innovators, all the hard work is done, and now copy-cats will follow and there is a chance Apple may lose its current edge. The best thing Apple has is its ablitly to innovate, and as long as they do that, they will always be relavent. We hope to continue working with them for years to come, and we are major fans of Steve Jobs, but have a different vision for the future.

I-mobilize has already planned the possiblity of creating its own tablet device, but we will save that for another post. We are sure very soon Google, Samsung, Microsoft, Nokia and others will work out all their bugs and limitations and become real competitors for Apple in the hardware game.

Google’s limitation is the philosophy of making content free, and its losing the battle on many fronts. Content owners all over the world are fighting their “freeware” strategy. We don’t think its viable long-term, and its ironic since they charge so much for advertising on their search engine, but want movie and book producers to give away their content. If Apple ever decided to get into the search game or if Microsoft can make Bing actually work..Google may fade out rapidly. Anyone remember Excite? Google is expanding into areas like biotech, but we believe they should increase their efforts on creating a world-wide free wireless net, like that started doing a few years back, that way they can control all voice and internet data traffic. We still like Google but since the ownership shake-up things are not the same, its becoming less like Apple and more like Microsoft.

Hulu, another dark horse, seems to only have a few major short-term contracts and limited mobile exposure, and Netflix is actually executing well with more content, but both are missing huge areas of the market. We really like Netflix and tried to partner up with them on an app, but it didn’t happen, and we would like to work with them in the future.

Amazon is valiantly fighting a losing battle with Apple on the hardware front, (in our opinion), and has just begun to scratch the surface of video and audio distribution, its main limitation is that its primarily web-based and book focused still. They are however doing many things right, and we applaud them. They have developed a fantastic cloud server system, we feel its the best out there now. Amazon could pull it off, if they focus more on mobile, they have the similar content contracts just like Apple.

Right now its still anyone’s game, and its only the first quarter.

If Facebook can come out of obscurity to basically own half of cyberspace in a few short years, who is to say another small company can’t do the same in world of digital content. We are striving to be that company. Its a long-shot, many things can go wrong, see disclaimer at end of post, but that is what we are trying to do and even if we accomplish only a fraction of our goals, and its looking like we will, Metatron could be a major force in world of digital content distribution.

The big Network players like AT&T, Verizon ect.. themselves will become less relevent as free wireless becomes the norm, and we believe this will happen faster than people realize. Go Google Go.

As Sumner Redstone once said, “content is king”, the companies that own/control the content will be the winners long-term. Its the only thing of true value left in the digital world. Apple in a few short years has become the number one music distributor and its well on its way to control the book and movie industries as well, and they may very well succeed. Also it should be noted when Apple created iTunes it effectively killed the pirate trade of mp3's, this should be warning to Google as to why pursuing a free content strategy will never work in our current economic system, its not fair or good business. Here is a link to an interesting article about the subject:

http://online.wsj.com/article/SB123819841868261921.html

Metatron believes in making sure the content producers as well as the consumers are each given a fair deal. We would like to be the Wal-Mart of the digital content distribution world, small margins, large volume, happy consumers and producers.

We also believe our strategy of being hardware trancendent is superior and we are looking forward to executing this in a big way. In the near future we hope that an i-mobilize customer can buy any content on any device, and have it play on any device that he/she owns for a fair price.

4. Errors on Apps ect..

Their are some spelling errors on a few apps, we will eventually get to fixing them. Its actually a labor intensive process to change some aspects of app (like the title) so bear with us. We have implemented procedures to ensure errors occur less frequently on future titles.

5. AD supported apps?

Still working on these, experimenting in various ways with our free apps, trying to make them compete with paid apps is tricky, but doable, once again working with limited resources, and other factors our out of our control, may have something more solid by end of Q1.

6. Apple TV impact on revenues?

Great product, but limited penetration in the marketplace (currently 1M per quarter unit sales). We believe there is still not a compelling reason for consumers on a mass scale to switch from their cable-tv boxes or playstation to ATV at the moment, that may change as new features are rolled out. Steve Jobs said it best: “”The only way that’s ever going to change, is if you can really go back to square one, tear up the set top box, redesign it from scratch with a consistent UI across all these different functions, and get it to consumers in a way that they’re willing to pay for it. And right now there’s no way to do that.”

Its hard to say right now how having apps on ATV will impact our revenues, we expect it to be minimal for at least a year. We also expect Apple will evenutally allow you to play movies on your tv from your iphone/device-like you can do now with a jail-broken iPhone, the AppleTv may go the way of the dinosaurs relatively soon, but it is a pet project of Jobs and has significant backing from Apple, so its future and impact is unclear at this time.

7. What is your return/refund rate? Low, less than half a percent.

Thanks for reading our rather long blog post today, we hope it provided enough substance for shareholders to understand us better yet didn’t give away the farm.

We appreciate your support and look forward to a profitable 2011.

Happy New Year!

Forward-Looking Statements: Any statements


Great product, but limited penetration in the marketplace (currently 1M per quarter unit sales). We believe there is still not a compelling reason for consumers on a mass scale to switch from their cable-tv boxes or playstation to ATV at the moment, that may change as new features are rolled out. Steve Jobs said it best: “”The only way that’s ever going to change, is if you can really go back to square one, tear up the set top box, redesign it from scratch with a consistent UI across all these different functions, and get it to consumers in a way that they’re willing to pay for it. And right now there’s no way to do that.”

Its hard to say right now how having apps on ATV will impact our revenues, we expect it to be minimal for at least a year. We also expect Apple will evenutally allow you to play movies on your tv from your iphone/device-like you can do now with a jail-broken iPhone, the AppleTv may go the way of the dinosaurs relatively soon, but it is a pet project of Jobs and has significant backing from Apple, so its future and impact is unclear at this time.

7. What is your return/refund rate? Low, less than half a percent.

Thanks for reading our rather long blog post today, we hope it provided enough substance for shareholders to understand us better yet didn’t give away the farm.

We appreciate your support and look forward to a profitable 2011.

Happy New Year!

Forward-Looking Statements: Any statements made in this blog/press release which are not historical facts contain certain forward-looking statements,