Denver-based siblings Clint and Blake Fayling built a formidable operation out of adult Brickhouse Mobile and mainstream 5280 brands. So why did they re-brand the company as A3 Media? Tim Green asked them…

A re-brand. Always a bit of a nightmare. Why bother?

Clint: As we went more international we became aware of the shortcomings of the name (5280 refers to the height above sea level of the company’s home city Denver – ed). We were in Turkey and a translator was explaining it to a client – and struggling – and we thought ‘let’s change it’. It also helps us move beyond mobile and into IPTV, digital TV and so on.

So what does this mean for the 5280 and Brickhouse brands?

Blake: Well, they carry on under the A3 umbrella. And it helps us, because now there’s just one contract to sign rather than two. Basically, the change brings us closer to the cable company model where you can offer a range of product types under one entity.

But is there a problem going into a deeply conservative operator with an adult brand like Brickhouse in the repertoire?

Blake: Well, again, it’s like the cable companies. Time Warner, Comcast – they all offer mature content. They seem to be OK.

How important to the company is the adult repertoire?

Blake: Depends on the territory. Outside North America, we lead on the mature content and diversify into other areas. In North America it’s the other way round.

Clearly, the US operators are rigidly opposed to mature content. Do you detect any change in their stance?

Clint: I’m sure things will change. I know some operators have been speaking to their counterparts in Europe about age verification and how to make it work. We’ve also seen some trialling content controls here in the US. They are all acutely aware of the reaction of their subscribers and their commercial partners, but they also know that if they want to maintain three per cent annual growth they need to look at all options. But you have to remember that you can segment the portfolio to suit the customer; 70 per cent of our mature content sales are what we categorise as ‘clothed’.

How’s the health of the US content market?

Clint: There’s been drastic re-organisation. AT&T, for example, slashed its partners from around 50 to four. Fortunately, we’ve been retained by virtually all the operators in the US. It’s tough. The D2C market is dealing with legal issues, and that’s hard when margins are tight and you have to spend a lot on marketing to get a return.

Clearly, A3 is flourishing despite the tight market conditions. What’s the secret?

Blake: You have to go beyond product to differentiate yourself, and focus on service. That means looking at analytics to maximise sales, refreshing the portfolio and micro-targeting.

Give me an example.

Blake: We work with local colleges to help us identify new products. They alerted us to the work of fairy artists, who are very popular with younger girls. When you work with ‘babe’ content it’s easy to overlook this stuff. But it’s one of our best selling categories now.

How does a B2O company like A3 deal with the app store phenomenon. What’s to stop your partners creating their own apps, uploading them and bypassing A3 completely?

Clint: Well, it’s another channel. There are still multiple app stores to develop for. And it’s hard to ensure high quality, a consistent brand experience and multiple relationships unless you’re an expert in content. We expect to have our first apps in 60 days.