Value, if one item is featured by Shazam and an additional $10,000,000 in sales is generated for a company, you think DMRC will only get a one time fee of $50?
Think of Wegman's and Shazam signing a deal tomorrow for an ad campaign for all of Wegman's private label products. Since Wegman's has already paid for barcoding, do you think DMRC would be entitled to $0 from Shazam for the new campaign, even though Shazam is using DMRC technology? No way.
There is an ad revenue model other than the retail barcoding revenue model, even if the item is already barcoded. There is an undisclosed revenue model with Shazam that involves more than a $50 annual fee for the item featured. Disney didn't pay DMRC $50. Likewise, Costco and DMRC have done flyers - and Costco hadn't signed up for barcoding. And DMRC was paid by Costco even though the items weren't barcoded.
The agreement with Shazam might change depending on the campaign - and it could be lucrative for DMRC. What I'm saying is we don't know how it's structured.
I'm glad to see the PR. I am still mulling over the revenue model. How is Shazam getting paid - per views or downloads? If so, I would think that DMRC would get a % of that since the DMRC technology is part of the application.
So I doubt that the revenue paid to DMRC is structured like the barcoding. Anyway I hope not. If Shazam is already generating significant revenue and Digimarc is getting a % of that as it occurs, then the impact on DMRC's bottom line could be significant very quickly.
Twochief, the grammatical error in my post that you responded to was so annoying that I deleted it - I will repost it below. But first I wanted to say that yes, this is a very positive development with Target. I think Shazam is a great partner, and I am surprised on how fast it's paying off. I'm bullish on the developments.
This was my post, corrected:
"I'm not as certain that this takes us there. I don't see it requiring universal adoption for all products that Target sells. If there's a print ad for a hair product or lawn chairs, those products are the only ones that are affected. And the products in the ad don't need to be watermarked or barcoded - just the ad."
"I understand that the goal is to engage the customer in the store as well, but unless Target (or any other store) adopts the invisible barcode for all its products, the ad/flyer business isn't the game changer. That's why I was asking about the revenue model earlier."
Meaningful revenue for Shazam might mean VERY meaningful revenue for Digimarc. Whatever it is, it should grow over time.
Apparently not - since they are already over 10% ownership, if they bought so much as 1 share they'd have to report it. But their purchases were probably for a 3rd party - so unless that party wants more, Nokomis won't add. But 10% is a lot. And as I recall, the purchases were mostly done at a lower price. So it's not a red flag that they haven't added for a few months. It's bullish that they own so much.
I agree. Today was a drag, but the investment thesis is intact. We should be significantly higher (over $2) by year's end. When it turns we can play Willie Nelson's or Ella Fitzgerald's (or anyone else's) version of "Blue Skies".
628,675 shares - that is a lot! I agree, shorting a stock with breakout news potential is not something I would recommend.
Yes, on a stock message board, it's about the investment strategy! The stock isn't going to be in the 30's as we approach October.
RLYP filed their NDA 7 months ago. RLYP has a SPA and a pdufa date. Good luck to investors in both companies. I like seeing any critical condition have a treatment. Too much suffering in the world. I own shares in both, but from a timing/price perspective, I like RLYP much better. A bargain under $35. My last post was when it was under $30 - I do very little with options, but I bought a few calls when they were very cheap. I don't bet big with biotechs any more, so I don't want to misrepresent myself as being a big investor.
OK, my apologies. I have been asleep as the rest of you were discussing Shazam. I finally listened to the interview - "We'll announce several other big brands next week" - and it has all just sunk in. Very exciting!
DMRC issued the PR about partnering with Shazam in December. It only took 5 months to hit the deck running. I don't know how long it will take Shazam to have enough partnerships in order to be able to start funneling significant revenue to DMRC. But if they're starting with Disney, and more big brands are about to be announced, it appears that the rollout is going very well. And Shazam has "100 million mobile monthly active users"!
re: "Also, Shazam CEO said this coming week they would be announcing two large brands leveraging Shazam (Digimarc) solution." Lottaluck, are these the CPG companies that you referred to?
Lottaluck, wow, that would be very big news if 2 major CPG companies are already working with DMRC - what's your confidence level that your sources are accurate?
I agree, value. I didn't see the last 2 hours of trading, so I was happy when I checked my account after the close. I am looking forward to next week. Hopefully before long we'll get word of the next retailer to use the invisible barcoding.
I am pleased with today's action - a strong up day, closing near the high, on above average volume - on a Friday. Very bullish. But a short squeeze would be even better! :) I've never been in a stock when one occurred. I'll settle for a lot of days like today.
No problem, Red. Posts can read more abrupt than they are intended. I was just throwing out an idea. I have a small stake compared to a lot of the rest of you, but any $ I can make with WDDD will be welcome. I am prepared to ride it out through a trial. Good luck to you and all longs!
1. Negotiations take as long as they need.
2. Just because investors have been waiting 7 months that doesn't mean the negotiations would have had to have started 7 months ago. They could have started 2 months ago.
3. I said "unlikely." As is every other scenario that anyone else has suggested might be the reason for the delay. An unlikely scenario is going to end up being the reason.