IR goes video (Really. We mean it this time)

Jan 14, 2010

Canadian company launches an all-video IR website

Talk about TV reality shows. A Canadian company has committed to using video as a primary method of communicating with investors. On Tuesday, Toronto-listed Mosaid Technologies, a patent licensing company, launched a video-based 'investor channel' (InvestorChannel.mosaid.com), which aims to replicate its IR page in all aspects but one: every major press release is simultaneously accompanied by a video so investors can see and hear about the news directly from the mouths of management.

Michael Salter, director of IR and corporate communications at Ottawa-based Mosaid, believes the new strategy will help level the playing field among investors by leveraging social and other web-based media. 'Our goal is to build the investor channel as a multimedia platform where we can develop new ways of communicating,' he says.

Indeed, he promises Mosaid won't be a mere film dilettante. 'Given the cost and resource commitment, you can't just launch something major like this on a stop/start basis,' says Salter, who has budgeted the program for a minimum of two years. 'There is, after all, corporate reputation on the line.'

With about 15 significant news releases a year including quarterlies and perhaps five background videos on topics like Mosaid's approach to guidance, Salter and senior management have their work cut out for them. But Salter is confident the market will applaud their efforts. Mosaid has a complex business model story but a charismatic management team and investor feedback on roadshows had always been positive about face-to-face contact.

'Management has limited time to devote to IR and outreach to retail shareholders and brokers is especially problematic,' says Salter. 'Traditional coverage via brokerage firms and the media is getting harder for a small cap like Mosaid to attract so we thought we'd try a new way to communicate to the market and stakeholders.'
 
Salter is looking to introduce Mosaid's investor channel, developed in conjunction with design firm Salience Dynamics, into the brokerage and media communities in coming months. 'We'll ask brokers to push out these videos to their clients and at the same time approach online financial publications about integrating our videos instead of stock photos when they run a story about us.'

Salter points out that the technology features analytics to track downloaded videos. 'Naturally management wants to know the efficacy of the tool,' he says.

'There's definitely a learning curve,' adds Salter, who first presented the concept to management almost a year ago. The curve became most acute when it came to disclosure issues. 'Elements of the video may be different from the press release so we had to make sure people knew that in our safe harbor statement,' Salter explains. 'Otherwise, from a legal point of view, the videos are handled just like any other piece of public corporate information.'

By Jeff Cossette