A text file is served up that activates the character, and a vocal file is overlain. As for revenues, Raaf said the company is negotiating with several carriers to offer the service to their customers. He believes people will likely pay several dollars per month for subscriptions, comparing it to NTT DoCoMo's per minute fees, and that a revenue-sharing arrangement could be made. Advertising is not being considered now, he said, since the shows are only one to two minutes long and not conducive to commercials, but that may change once consumers become accustomed to the service. Rather than create content, the company has developed its CelFeed technology to transcode and stream live TV broadcasts to wireless devices.
Live feeds are really the key.
The CelFeed technology constantly monitors the connection quality of the user, automatically customizing the stream to fit the connection. A box goes next to the cellular switch, which the carrier buys to offer the service to subscribers. The technology works with both 2.5G and 3G networks, along with other standards including GPRS and I-mode. Marchioni said revenues come from box sales and revenue-sharing agreements with carriers, which are still being worked out. He adds that content type and viewing time can be tracked, which could hint at possible future m-commerce opportunities.