Share prices for Tubearoo Inc. (OTCBB: TUBR) arced gently today, rising a total of 10 percent over the course of the day to settle at $2.81 a share by market close.The source of this boost was this morning’s announcement that the company has begun the official beta test launch of its mobile video service, allowing Tubearoo subscribers to receive video clips from Tubearoo.com on their cell phones and other cellular devices via a text messaging service. According to the release, this service has been functioning on an internal basis for some time, but that this is the first time it’s been opened to the public.
Paul Medvedev, Tubearoo’s president and CEO, was excited at this next step in his company’s evolution.
“This is a great day for Tubearoo as we begin the official beta launch of our mobile video service,” Medvedev said. “The mobile video market is a tremendous market that is expected to grow rapidly over the next several years, with eMarketer predicting that mobile video revenues could reach $5 billion around the world in 2011.
“Tubearoo endeavors to continually improve our product offering and bring unique and innovative services to our users,” Medvedev continued. “With our mobile video service we will be pursuing a market of immense proportions.”
According to the press release, the company is launching this service through a third-party provider, letting Tubearoo to provide this service without having to sign any agreements with underlying cellular carriers.
The company did admit that there is no assurance that it will be able to obtain approval for use of its video service by the last two cellular companies it is waiting for approval from.
“Because we are working through third parties and waiting further approvals from very large cellular companies, we are uncertain as to how long we will run the beta test and when we will be clear for a finalized launch date to the general public,” Medvedev said. “We anticipate that the service will be available to the public sometime over the next several weeks.”
In response to the news, share prices rose from $2.57 a share to $2.81 a share.
