NEW YORK, Jan. 29, 2015 /PRNewswire/ -- MOKO Social Media Limited (NASDAQ: MOKO, ASX: MKB; MOKOsocialmedia.com) and US-based IM Leagues LLC (IML) have agreed to extend MOKO's exclusive license to the IML college intramural data feeds. The amended agreement automatically renews for an unlimited number of additional one year terms until MOKO elects to terminate, with the effect of providing MOKO with exclusive rights in perpetuity, subject to MOKO meeting the conditions of advance payments and meeting standard operational responsibilities.
IML operates the imleagues.com sports website used by recreational and intramural sports departments in over 860 US universities and colleges. IML's service to students and colleges ranges from online signup to event scheduling to management of college intramural sports leagues.
In 2013 MOKO secured a 3 year exclusive agreement for the mobile rights to IML's data including student and team schedules, fixtures, standings, statistics and news feeds. This expanded MOKO's REC*IT platform access from about 5 million to 10 million students across an additional 600 US colleges. That has since grown to over 860 colleges.
MOKO has since worked with IML to promote REC*IT to these colleges and was released in the Fall semester late last year. So far the initial adoption has been excellent with over 150,000 downloads with minimal student promotion. Most encouragingly, the usage of REC*IT with these initial users is significant, with REC*IT proving to be highly engaging and user metrics are up to 12 times above the industry average. REC*IT is provided free of charge to colleges and students and MOKO is using this as a sales platform via mobile advertising to sponsors, businesses and others seeking exposure to US college students.
In the new agreement MOKO will extend the features and functionality of REC*IT to include in-app registration, admin messaging and functionality for the administrators and college REC directors and other important product upgrades that will make REC*IT more usable and boost engagement.
"This is a major win for MOKO," said CEO Ian Rodwell. "The extension of the exclusive license to ensure our security of tenure sets a big barrier for any competition. We will devote more time and resources to working with IML to build an even bigger and better product knowing that we are tied together with fused objectives."
The amended agreement also changes the commercial terms from a flat license fee to a minimum guarantee against a 10% revenue share on the net revenues from REC*IT.
"IML and MOKO have jointly increased commitment in the ongoing success of REC*IT. IML has agreed to be incentivized with a revenue share as it can also see the upside potential of the MOKO REC*IT model over the long term," said MOKO's chairman Greg McCann.
MOKO will undertake a new "direct-to-student" marketing campaign during the current semester and will work jointly with other sponsors and partners to expand REC*IT usage, including a cross-promotion with the launch of MOKO's other college product, Speakiesy. This promotion is scheduled to commence late February.
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About MOKO SOCIAL MEDIA Limited
MOKO identifies large user groups around common interests and provides them with tailored mobile applications with information relevant to their common interest. These are developed by MOKO and provided at no charge to these groups or their members, in return for exclusive access and advertising rights.
MOKO's flagship mobile app is REC*IT: an application launching at more than 800 US colleges and universities that provides information about campus sports and recreational activities. Whether students are spectators or participants of campus sports, clubs and societies, this app provides the specific information they need, together with social functionality such as team chat.
In May 2014 MOKO launched Bluenationreview.com (BNR), which has grown to become one of the most visited active political groups on Facebook in the US. A new non-partisan user-generated political app called VOYCIT will also soon be launched. MOKO's app for US recreational runners is called RunHaven and contains event, training, dietary and other runner-relevant information. A further asset is news and entertainment app Tagroom.com and its Gen Y investment portal Tagroom Success.
MOKO is listed on NASDAQ (MOKO) and the Australian Securities Exchange (MKB).
This announcement is for informational purposes only and is neither an offer to sell nor an offer to buy any securities, or a recommendation as to whether investors should buy or sell.
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SOURCE MOKO Social Media Limited