In late May, Singlepoint, Inc. (OTC: SING) acquired an
interest in DraftFury, a daily fantasy sports (DFS) company that’s widely recognized
as the first cash flow positive enterprise in the DFS space. With this
transaction, Singlepoint immediately grabbed a foothold in an industry that’s
been on fire in recent years. According to data from the Fantasy Sports Trade
Association (http://nnw.fm/TpI8p), roughly 57.4 million players will
participate in fantasy sports in 2016, with DFS activities accounting for the
lion’s share of spending. As recently as 2012, DFS accounted for just over six
percent of fantasy sports spending. Its rapid emergence and subsequent
overtaking of traditional fantasy sports contests have created opportunities
for fast-moving companies operating in the space. Singlepoint’s decision to
acquire an interest in the DFS sector demonstrated its flexibility to
capitalize on market opportunities by leaning on the experience of its
management team.
With this in mind, it came as little surprise when, earlier
this week, Singlepoint turned its sights toward the latest trend to take the
country by storm – Pokémon Go. On Tuesday, the company announced that its board
of directors has approved an initiative to build a mobile app that caters to
bringing like-minded Pokémon Go players together and offering reward-backed
communication opportunities. Singlepoint has already initiated discussions with
programmers under contract to develop this app, which will reportedly reward
users for performing a variety of geo-targeted actions while playing Niantic’s
immensely popular mobile game.
Since its release on July 6, Pokémon Go has effectively
rewritten the mobile record books. Apple (NASDAQ: AAPL) recently reported that
the game was downloaded more times during its first week than any other app in
the history of the App Store. User data supports these statistics. As of July
18, Pokémon Go had an active user base of 21 million people spanning 35
countries. Despite adhering to a free-to-play model, the app has also been
extremely successful in generating revenue. According to analysts from Needham
and Company, Pokémon Go’s ratio of paid users to total users is roughly 10
times that of Candy Crush, the smash hit from Activision Blizzard’s (NASDAQ:
ATVI) King Digital Entertainment that raked in more than $1 billion in revenue
for two consecutive years from 2013 to 2014. Even Nintendo (OTC: NTDOY), which
released a statement confirming that the income it will receive from Pokémon Go
is expected to be “limited,” saw its share price nearly double in the days
following the game’s release.
Alongside the popularity of Pokémon Go, a number of
developers have demonstrated the viability of companion apps that improve its
play experience. GoChat, for example, is currently available for both iOS and
Google’s (NASDAQ: GOOG) Android mobile operating system. Because Pokémon Go
lacks an in-game chat feature, GoChat has proven extremely successful in riding
in the game’s wake. Jonathan Zarra, a first-time developer and creator of
GoChat, told The Verge that, within five days of launch, his free app was
approaching one million users and hitting servers with 600 requests per second.
Still, GoChat is just one of many available companion apps for Pokémon Go
players. The Verge estimates that about 10 percent of the individuals who have
downloaded the game have also downloaded at least one third-party chat app to
go along with it (http://nnw.fm/mM82M).
The early successes of companion apps reiterate the
viability of Singlepoint’s plan to capitalize on the growing Pokémon Go craze.
By integrating message boards with additional features that enhance the play
experience, the company’s upcoming app could help it establish a sustainable
foothold in the next big wave in digital entertainment. Greg Lambrecht, chief
executive officer of Singlepoint, confirmed this vision in a recent news
release.
“We are perfectly aligned in the mobile app space to take
advantage of the current phenomenon that is Pokémon Go, along with similar
scenarios in the gaming world across the board moving forward,” he stated. “We
are to the point where technology has demonstrated the ability for gaming to bring
players to the outdoors: engaging, exploring and with a camaraderie among
players like never before. We intend to capitalize on this in a big way.”
For more information, visit the company’s website at
www.Singlepoint.com
About QualityStocks
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.
Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net
Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net
No comments:
Post a Comment