Crazy Frog Kills Verisign Revenues

Verisign's ill-judged adventure into ringtones took a stumble today, as the company said it would miss its Q3 earnings targets. Verisign blamed the shortfall on having to abide with regulations on mobile content in Europe: regulations it has largely provoked through its own business practices. Verisign now expects its Q3 revenue to come in at $410m, rather than the $435 to $440m range issued in previous guidance.

And the notorious Frog's to blame.

Last year Verisign snapped up ringtone provider the Jamba! Group, which this year embarked on a cynical saturation advertising campaign - at one stage buying up more than 50 per cent of prime time TV advertising in some markets - for its Crazy Frog ringtone. Jamba's Jamster didn't make clear that the youth market being targeted was unwittingly being sold a subscription service, rather than a one-off download.

The result was a predictable explosion in revenues, and an equally predictable backlash. Last week the British advertisers' self-regulator, the ASA, banished the loathsome amphibian from appearing on the nation's TV sets before 9pm.

Crazy Frog emasculates Verisign earnings source

Technorati Tags : crazy, frog, malaysia, verisign, jamba, jamster

Powered By Qumana