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In the current search to make websites 'sticky' and extend the amount of time that users stay at a particular website, Webmasters face an ongoing challenge to create or obtain 'content'. News and entertainment are the two major types of content for most large portals.
The Company has an opportunity to develop and syndicate 'programming content' for use on a wide variety of websites. Using its proprietary technology, DC is well positioned to become an important source of syndicated material for major websites.
As an example, the Company is currently in negotiations to develop an exclusive arrangement with Yuk Yuks, Canada's largest chain of comedy clubs. Comedy has proven to be one of the most popular mainstays of Internet communication, and there is a large amount of e-mail traffic devoted to informally distributing jokes to friends and acquaintances.
Working together, Yuk Yuks will provide DC with videotaped material of its most popular entertainers, and be responsible for all creative content. This material will be edited into a series of short streaming clips.
These clips will be offered as a syndicated property to webmasters for inclusion on a wide variety of websites, for a monthly fee. The format will initially center on a 'Joke of the Day' feature. There will be two streams of material developed; one for adult sites and another for consumption by a broader audience.
In addition to monthly syndication fees, the Company will reserve the right to imbed a short commercial (10 or 15 seconds) message within each clip. Advertisers will be able to select the types of websites on which they want to advertise, and fees will be charged based on actual viewing of advertising by the intended audience. Using the Company's specialized tracking software, we will be able to identify when a commercial has been viewed in its entirety, and only then will clients be charged for the advertising exposure.
It is anticipated that advertising revenue will be shared with the hosting websites, creating an additional incentive for them to aggressively promote the feature.
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