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Zingy going direct to consumer in tightening content market

Zingy is hoping to find some stability in the direct-to-consumer market.

The New York-based mobile content provider launched an Internet storefront targeting 13- to 21-year-olds with both a la carte and subscription pricing models for ringtones, images, games and applications. Zingy said it will back the effort with a marketing campaign in print, online and in retail locations in the next few days.

The company touted a “double opt-in” subscription model that would comply with guidelines from the Mobile Marketing Association.

“We believe it is essential to build a trusted, long-term relationship directly with consumers and the best way to do that is through integrity, honesty and a compelling product offering,” said Debra Bluman, Zingy’s vice president of marketing and sales.

Zingy lost its second chief executive officer in six months several weeks ago, when Andy Volanakis stepped down over differences with Japanese parent company For-Side.com. Volanakis was named CEO in December following the abrupt departure of Fabrice Grinda, who co-founded the company five years ago before selling out to For-Side in 2004.

Volanakis had overseen a beta test of a new direct-to-consumer Internet storefront, but his plans to expand the business were opposed by For-Side, which had been focused on limiting expenses.

For-Side expressed plans last spring to consolidate its U.S. businesses, which also include mobile publisher Vindigo and content provider Proteus, into a single entity in an effort to take them public. The likelihood of such a move has decreased dramatically during the last year, though, as content aggregators increasingly are being excluded from direct deals between carriers and content providers.

Meanwhile, For-Side is reportedly shopping the content provider and its sister companies. The U.K.-based publication Telegraph has reported that Deutsche Bank is advising For-Side on the sale of Zingy, and the parent company is also said to be interested in spinning off For-Side Europe, which owns the U.K. firm Itouch.

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