230 Park Avenue, Suite 1000
New York , NY 10169
|James Alexander, CEO
Dennis Kremer, Controller & Acting CFO
Steven Singer, SVP Human
Product Line or Service
Mibrary.com centralizes and manages consumers’ digital libraries of photos, electronic books, music, games, software, movies and other digital media on an easy to use web site. Mibrary.com makes digital libraries truly portable for the first time by enabling consumers to access their libraries from any Internet-enabled device. As such, Mibrary.com will also become the Equifax of digital rights management by verifying rights ownership for 3rd party original equipment manufacturers (OEMs) and software developers who provide access to digital libraries through their products for their customers. Future digital content management could include medical records, financial records, Internet bookmarks, web site cookies and other personal content, all of which becomes more useful when truly portable.
The basic service of digital library management is free for consumers. The Company’s four primary lines of revenue include:
- Registration/Enforcement Fees: On behalf of consumers, content providers and retailers will outsource proof-of-purchase tracking and post-sale customer service for digitally distributed content to Mibrary.com, which includes recording the transaction in the consumer’s digital library and providing unlimited, secure access to that content for a period of two years after purchase.
- Licensing Fees: Paid by Internet appliance manufacturers (OEMs) and software developers to include the Company’s technology thereby enabling owners of these products to securely access their digital libraries on
- Direct Marketing Fees: Access fees paid by marketers wishing to reach Mibrary.com users based on our users’ detailed demographic and psychographic data inferred through their media purchases.
- Fulfillment Fees: Consumer service fees including micro payments for photo fulfillment (receiving photos and photo products), rights transfer (selling, auctioning, transferring or exchanging digital product licenses), and physical fulfillment (ordering hard copies of items in their digital libraries).
The Company’s counsel believes aspects of Mibrary’s business and technology may by protectable. In addition, the breadth of the Company’s plan generates six critical barriers to entry that will provide further protection and give it traction in the marketplace.
- Independence is required for maximum consumer utility. Consumers shop at different online retailers for a variety of reasons. Consumers will expect that regardless of where a digital product was purchased, it will be recorded in their universal digital library. As such online retailers will not willingly share this consumer data with each other. This situation forces online retailers and, by association content owners, to support an independent, third-party repository for this information.
- Inserting the Mibrary.com database access technology into Internet-enabled devices and digital media software players makes Mibrary.com ubiquitous and gives the company a powerful barrier to competitors merely offering web only solutions. It’s also a necessary component for implementation of digital content protection standards like SDMI. OEMs and software developers will be reluctant to include multiple, redundant technologies in their products.
- Incumbency will be a powerful barrier when others seeking to replicate our business model of including consumer DRM fees at the wholesale level, approach content owners.
- Strategic investments are equally potent and will serve to strengthen the company’s relationships with its key customer segents. These investment opportunities will be pursued as part of the company’s Series A round. The Company will also make investments in its partners through its coop-advertising program. Coop advertising is an important barrier to entry as partners become dependent on the dollars.
- Integrating many different digital content types gives consumers more utility and convenience as their digital libraries of photos, books, music, games, software, videos and other digital content are stored in one central place.
- Initiating the marketplace – being first to market – gives the company an important lead over others attempting to solve the same or similar consumer problems.
Through one integrated solution, Mibrary.com solves critical problems for four interwoven market segments: consumers, content providers, retailers and OEMs. As consumers grow their digital libraries, they need a one-stop location for managing this content, protecting their purchases of intangible products and easy access to this content through Internet enabled, non-PC devices. Content providers need to know who their customers are and reduce the cost of promoting their products. Retailers need a low-cost mechanism to handle the inevitable downloading and storage problems that customers buying digitally distributed content will encounter. OEMs need to find ways to greatly expand their market share by selling products to consumers who don’t own PCs.
Marketing/Sales and Distribution
Mibrary.com will be included in the checkout process for digitally distributed content making the process seamless for consumers. Through a channel program for both online and traditional retailers, the Company and its services will be promoted as part of the retail experience. The consumer will be notified at the conclusion of the sale that their purchase will be automatically included in their Mibrary. A confirmation email will also be sent from Mibrary.com verifying that the content has been added. By building Mibrary.com into the checkout process, the company ensures that it will generate revenue and grow its database without consumer intervention while turning customer acquisition from a cost into a revenue stream.
The digital rights and content management space is young and in its formative stage. Many companies are jockeying for the leadership position in five primary industry segments: application development, integration, clearing services, digital distribution, online/offline content management. The primary focus of the DRM industry has been on protecting the rights of content providers. This narrow focus has created the opportunity for Mibrary.com to bring products to market that focus on serving the needs of consumers while implementing the technology developed by the industry to protect content providers. It is possible that after the company gains traction, other DRM providers may either seek to offer competing services or acquire the company. There are several barriers to entry, however, that will protect the company as it gains momentum.