FlowPlay Platform To Provide Virtual World For FanHub, More On The Way

"I was planning to build a virtual world for the site, but after seeing the amazing work done by the Flowplay team, the obvious choice was not to re-invent the wheel, so we decided to incorporate this amazing technology, giving completely frictionless access to our members," Paul Lipscombe, FanHub’s site director, said in a statement.

FlowPlay also developed and operates its own teen-focused virtual world, OurWorld. The company has always talked about its platform as separate from the virtual world, though, and with the FanHub announcement it's finally making moves in that direction. 

FlowPlay CEO Derrick Morton told me that while FanHub is the first partner to pick up a license, he is talking to two other potential partners as well. Morton expects to be making further announcements in 4-6 weeks. 

That said, he's clear that OurWorld is still the primary revenue source for the company and likely will be for some time. While Morton thinks that licensing opportunities may eventually equal or come close to in-house projects, they won't eclipse them.

As for OurWorld, it's driving FlowPlay to profitability, says Morton. The company recently took $1 million in funding, but Morton says FlowPlay and its 23 employees are about 60 days from reaching the breakeven point. In terms of revenue, he says about 60% of OurWorld's comes from virtual currency sales. The rest comes from subscribers, many of whom say they opt for a membership because of the regular virtual currency stipend.

FlowPlay will work with FanHub to develop the virtual world, which will use its own virtual items and look and feel. Without going into specific business terms, Morton described the relationship as a partnership where FlowPlay will share in the proceeds.  Virtual goods will be the primary revenue source.

FanHub will officially launch at Comicon 2010, giving it a slightly more adult audience than OurWorld.

"We've never thought  kids had a monopoly on being entertained by virtual worlds. We want to reach that older audience," said Morton.

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