The Mobile Star Corp. intends to engage in the development, manufacture, and sale of a self-operated, computerized Karaoke recording booth for individual operations and voice recordings. The company was founded in 2007 and is based in Even Yehuda, Israel.
Mobile Star Corp. (OTC: BB-MBST) intends to market and distribute the coin-operated vending machines to popular recreation areas including restaurants, shopping malls, bars and theme parks. Mobile Star plans to begin marketing the technology to consumers in 2010. Mobile Star's entertainment vending machine is being developed to provide a personal karaoke experience. The free-standing booth utilizes patent-pending technology enabling an individual to digitally record his or her voice singing to hundreds of songs. The unit then publishes a computerized disc featuring the singer's voice and the selected background music.
The technology utilizes a proprietary digital-media software platform, and professional-grade hardware to dramatically improve sound quality and imitate the acoustics of a hall.
The Mobile Star Corp. is a development-stage company. The Mobile Star Corp. invention includes a closed booth, divided into two parts: an acoustically isolated space wherein the singer sings, and the recording and processing hardware, including a computer and a computerized disc dispenser. Four different instruments process the user's voice, including amplifier, compressor, reverb, and equalizer. The amplifier amplifies the voice to the appropriate volume compared to the background music. The compressor restricts singing volume to a preset maximum. The reverb imitates the acoustics of a hall. The equalizer allows frequency changes to loud and super loud frequencies for sound improvement.
The Self Operated Computerized Karaoke Recording Booth include: a DVD, a flash memory device, a device connectable to automated means for recording audio via a physical cable; a device connectable to automated means for recording audio via a communication link with the user multimedia file; a door, ventilation means, a computer, screen, video camera and microphone; optional lighting and an automatic money box; a database of multimedia files, earphones, a recording means for recording audio and multimedia on a computer usable media, and a processing unit, and may consist of labeling and packing means for labeling and packing said computer usable media; and a graphical user interface (GUI), an audio processing application, a multimedia processing application, a control application.
Vision
The vision is having their unique karaoke machine as popular as possible, available to the public anywhere that has high traffic like theme parks, movie theaters, shopping malls, bars, entertainment areas. This will allow all of these types of areas to have the ability of studio-like quality recording for the public.
In the interview, Mr. Elbaz, CEO of Mobile Star, underscored the company's vision of having the company's unique karaoke machine, available to the public in high traffic entertainment areas such as theme parks, shopping malls, movie theaters, and bars. He emphasized the uniqueness of the machine by explaining that it utilizes a patent-pending algorithm and system that enables professional high quality recordings that can also be used for auditions or demos to radio stations.
Mr. Zwebner talked about the solid track record of the company, emphasizing its financial health. He pointed out that Mobile Star is seeking to raise additional equity. When asked why potential investors should pick Mobile Star out of the crowd, Mr. Elbaz answered: "It is a company with a very unique product, different from the usual high-tech Internet platforms, technology or communication. It is a daily revenue product in the eye-catching entertainment market."
Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published - October 9, 2009
CEOCFO: Mr. Elbaz, what is the vision of the company? Mr. Elbaz: The vision is having our unique karaoke machine as popular as possible, available to the public anywhere that has high traffic like theme parks, movie theaters, shopping malls, bars, entertainment areas. This will allow all of these types of areas to have the ability of studio-like quality recording for the public. CEOCFO: What is the difference from how karaoke is typically done now? Mr. Elbaz: The big difference with our karaoke machine is the automation and the possibility to produce a CD in high-quality. Today you can have karaoke at parties or karaoke at a bar. This just the karaoke where everybody hears you and you could if you wanted to, record it on your PC. However, it would be a poor quality recording and in public, you just wouldn’t record it. Live karaoke is great entertainment. What we make is a machine where anyone can sing and do the live karaoke and at the same time have a recording of high quality. Part of our invention and the property of the company is having a high-quality algorithm and system within the machine that enhances the quality of the recording. Together with that you have the possibility and part of the fun is to have a CD printed at the end of the recording, which you an take home or send to a radio station. It is quite high quality and not just a low quality computer recording. Professional quality is part of the product. CEOCFO: Are you in the process of patenting this? Mr. Zwebner: Yes absolutely! It is currently patent pending in the US, Israel, Europe and Canada. CEOCFO: Has your concept been tried in the past? Mr. Elbaz: After we started the patenting, we started the pilot here in Israel, which gave us fantastic results. This is part of what made us build the company around it. We had the pilot for over one year in very high populated areas with shopping malls and the responses were very enthusiastic. CEOCFO: What is your plan for marketing? Mr. Elbaz: The plan is to do a pilot in the United States in several different locations, in order to decide where would be the best locations of the priority of the deployment. Taking the experience from one country does not imply that the next country will have the same characteristics of users. Our plan now is to finish the machine from production and start several pilots at locations where we can see and test the response of the public and then move forward. CEOCFO: What is your revenue model; is it licensing or selling the machines? Mr. Elbaz: At the moment, we are not revealing this as our revenue model will be affected by the size of the locations in which it will be distributed. If we have to distribute in a movie theater chains, it would be different than if we were distributing it in a theme park. These are different channels of distribution and their type of usage. CEOCFO: What about the manufacturing, should this take off and you need to ramp-up? Mr. Elbaz: We have a manufacturer for our karaoke machines in North America. This manufacturer has experience with many years of mass production of booths and cabinets. So once we have the first and we are already bringing out the first machine as in our announcement, at this model we are able to increase the quantity very fast at high volumes that will be required. In a nutshell, the production that we have now for the first machine is a prototype in a location and a site and the know how to make it mass production in a short while. CEOCFO: Mobile Star recently became a public company; why was this the right time and what is the financial picture like for the company? Mr. Zwebner: The company completed its initial public offering in May (2008) and the received its OTC symbol and status shortly after and it is starting to trade. Recently in Israel, there was a write-up about us as a company that has filed additional patent applications and coming is additional coverage. Slowly, but surely, the story of the company is starting to get released to the public. For example, you have reached out to us. We are starting to get many letters from all kinds of companies that are starting to look at the company and its unique products and obviously they like what they see. In addition to singing the karaoke, part of the additional feature is that not only can it produce a CD, but at the same time, it would be able to forward the recording to a third party. For example, like American Idol; this could be a good complimentary product for them, which would save them money having to interview many contestants. There are many adoptions and features to the product other than just making a CD out of a machine. There is lots of potential and this is a very unique product and we are patent pending. We are not aware of a competitor that has a similar product and obviously, this is starting to catch the attention of the public. CEOCFO: Development is expensive; what is the financial picture of Mobile Star today? Mr. Zwebner: You can go into the filings on Edgar and you can see the June 30, 2009 financials. You will see the amount that was raised at our IPO and what has been spent on development. Like all R&D companies, we are always seeking financing to enhance development, from version one to version two and an even better version. We currently are in the process of seeking to raise equity. We hope the company will be able to win additional equity by the end of the year, especially now with our coverage of the market. However, we currently do have enough funds, so we are ok financially. Do we have enough funds for tomorrow to manufacture 100 machines? That is a different question, but we are on the right track. CEOCFO: Why should potential investors pick Mobile Star out of the crowd? Mr. Elbaz: It is a company with a very unique product. It is different from the usual high-tech, internet platforms, technology or communication. It is something very unique. The entertainment industry catches the eye of everyone around the world. The revenue potential in the United States, if you have 1,000 machines all over America and 10, 20 or 50 people walking into the booth a day, you can imagine what kind of revenues you will be looking at on a daily basis, I am not even talking about weekly, monthly or annually. This is a daily revenue product, not something where you will wait for revenue for thirty days with outstanding receivables. This is a cash business. Mr. Elbaz: Even during the pilot that we have run here in Israel, without exposing the machine too much since it it was in a local arcade, our machine was the top revenue-bringing machine out of all the other machines in this arcade. The revenue target will be defined in the pilot, but I can say that it will be below $10 for a recording, which if compared with a person managed recording studio, it is maybe ten times cheaper, and you add the possibility of having a recording with this type of quality. It will be below $10 for CD burning as well. Mr. Zwebner: If you have 1,000 machines and 20 people coming in a day that is $200,000 a day. It takes 3 to 5 minutes to record. In addition, this does not include additional revenues from being able to forward the CD to publishers, YouTube possibly American Idol, girl friends, or boy friends or sending it as a gift or singing and sending a song for a family member in some other part of the world. You can just imagine what kind of numbers we will be looking at. CEOCFO: What about maintenance of your karaoke machine? Mr. Elbaz: The ability to manage the machine remotely is most important. This feature is availablefrom the first machine that is coming out of production. We are able to remotely control each and every machine in the network. These are coin operated machines that are to be spread everywhere. Not only can we see online what is happening to the machine, but we can upgrade versions of software, and we can add or remove songs according to the popularity. We are anticipating the different areas will require different types of music like Latino, Rhythm and Blues, for different tastes of different audiences. So all of this can be done and this is part of the concept of our machines, to have a remote management of the whole network of machines. CEOCFO: What should people reading about Mobile Star remember most? Mr. Elbaz: People should remember that Mobile Star has a fantastic entertainment machine that has a big future and a big attraction to a very large audience with different profiles.
Current Projects
MBST Announces its Plan to Launch a Securities Awareness Campaign
Mobile Star Corp. is launching a Securities Awareness Campaign, a series of advertisements and/or sponsored messages that share a single idea and theme to create awareness of the company's current and future objectives and potential with the intent to attract and interest investors and/or stakeholders. This may include the hiring of investor relations personnel, launching a new web based investor relations platform, sending emails to opt-in subscribers of newsletters and/or information website, placing ads on websites, sponsoring research reports, interacting on message boards and mailing press kits and information.
Mobile Star Corp. Files Additional Patent Applications to Expand International Protection
Mobile Star Corp. a developer of coin-operated karaoke vending machines, announced today that the company has filed additional patent applications for its proprietary entertainment vending technology in the United States, Canada, Israel and the European Union. Mobile Star has previously filed for international patent protection under the Patent Cooperation Treaty (PCT), and has received approval to apply for national patent protection. Last year, Mobile Star filed for patent protection in the United States, where the technology is patent pending.
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