Interesting...I missed that post and I usually read Xan's. He must have posted that at 3am since he likes to stay up late watching movies on his computer.
I heard from Wick that gamefly is rumored to have 50K in subs. We should steal most of those since we are such a better deal and offer movies.
Question & Answers Q: Can you give us a brief overview of GameZnFlix, what you do and the markets you serve?
A: GameZnFlix, Inc., headquartered in Franklin, KY, is a growing business in the online DVD and video game rental space through its website at www.gameznflix.com. We have a wide selection of DVDs — everything from classics to new releases. As a member, you'll be able to choose from any of over 40,000 titles. You also get access to Xbox 360, Xbox, Playstation 2, Playstation 1, Playstation Portable (PSP) Games, Playstation Portable (PSP) Movies, and GameCube games. Gameznflix has over 3,000 game titles in stock covering all genres of gaming. The website is available 24 hours a day and makes finding DVDs and games very easy. Members have the option to rent titles in bulk, all depending on a number of factors, including how quickly they watch and/or play and return them. With a 3-out-at-a-time plan, they can rent unlimited titles and exchange titles they've watched for new ones as often as they like. When their membership begins, we send them the titles they place in their queue. Then they can exchange titles as often as they like. Titles should arrive in their mailbox in about one to three business days via U.S. mail. When they finish watching or playing, simply put it in its pre-paid envelope and mail it back to us. After we receive it, we'll send them their next available movie. Shipping is always free both ways — no hidden charges.
Q: What do you think is the value proposition of your Company is for your customers?
A: Our value proposition is simple – it’s all about the "and". Having both DVDs "AND" video games gives us an advantage in the online rental market. We have the opportunity to serve the whole family with a wide range of home entertainment offerings. Roughly 66% of our members rent BOTH games and DVDs. So, we provide that choice and do a better job of serving the whole household.
Q: What do you think separates the Company from its competitors?
A: Typically someone would have to spend close to $40 per month to get the same thing we offer for $16.99 per month. That’s a 3-out plan at Netflix for $17.99 per month and a 2-out plan at GameFly for 21.95 per month. Even if it’s apples-to-apples, a 2-out plan at Netflix is 14.99 per month and a 1-out plan at GameFly is $14.95 per month – which is $29.94 per month total. Our 3-out offering is a $12.95 per month savings in that case.
Q: Tell us about the Company’s relationship with Circuit City.
A: We are currently testing our services with Circuit City. Circuit City's policy is to not comment on ongoing tests so I can not provide you with additional details about the nature of the tests or the results of the tests.
Q: When can investors expect the Company to see an up tick in its subscription revenues?
A: I’m proud to report that we saw a 110% increase in paid members for the fourth quarter of 2005.
Q: Is the Company currently capitalized to achieve its strategic objectives through the next 12 months?
A: As of September 12th, 2005 the SEC allowed the filed SB2 to become effective and our funding to begin under that program. We are already in a position to adequately fund operations for 2006 and continue our growth.
Q: How much growth through acquisition can investors expect to see from the Company through the next 12 months?
A: The Company has and will continue to look at possible acquisitions for many different business reasons. Some of which are growth and others for a fit into our desire to be an internet entertainment group. We are looking to acquire companies and not be
Q: Tell us about your management team.
A: John Fleming, CEO and Chairman of GameZnFlix, has a long history of working with emerging public and private companies. As a career accountant, John is well versed in the financing and fund raising arenas. Myself, Chip Gallent, President, I have been working with internet-based businesses for 10 years. My experience has always straddled the technology and marketing of these companies. In my own practice I specialized in taking companies online and evaluating the inter-workings of a business in order to streamline their operations to work in the Internet space.
Arthur deJoya, Chief Financial Officer, has over 12 years of experience in both public and private accounting, mainly working with publicly traded companies. He is a member of the American Institute of Certified Public Accountants, Nevada Society of Certified Public Accountants and Public Company Accounting Oversight Broad.
Chris McLaurin, Vice President of Web Operations, served as chief technology officer for NETContent, Inc of Nashville, Tennessee from 2002 until assuming this position, and was President of C. McLaurin & Assoicates, Inc. of Murfreesboro, Tennessee a application design, e-commerce planning and software development firm prior to NETContent.
Q: What are some milestones that investors should watch for? (operational and financial/ 12-18 months)
A: We’re going to be very busy this year. So far, here’s what we have slated: A new re-designed website in Q1 2006. An aggressive online advertising campaign targeting the individuals who are most likely to use or try online services. Sponsorship and/or endorsement programs. Opening of further distribution centers. Currently the Company is reviewing Florida, Texas, Northeast, Midwest and Hawaii. Research and development to identify future product delivery platforms. Possible international expansion in 2006. Our goal is and will always be profitability for the company.
Q: Do you have any additional closing comments?
A: As a business we have a solid operating infrastructure in place, we understand what our customers expect and how to serve them, and we know how to grow our customer base. Understanding these key fundamentals, we are now in a position to execute our plan and grow the company.
Q: Is there a website where investors can get more information?
A: All of our information is available at www.gameznflix.com.
Those figures have been thrown around for quite some time. I know they didn't originate with xan, but the correct percentages are a little different. 17% rent games, 17% rent movies and 66% rent both movies and games.
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