Lingo Media gets it: software is where growth is
Lingo Media Corp. (TSXV: LM | OTCQB: LMDCF) exemplifies the current outpacing of the software sector over the hardware sector.
Apple (NASDAQ:AAPL) shares have tanked over the past week, and the chart is showing downward trend for the first time in years. The stock finished Monday at $93.64 after falling as low as $92.40 from $130 a year ago. In turn Facebook (NASDAQ:FB) is on an upward trend, going from $80 to $118 in one year. Over the same period Google (NASDAQ:GOOGL) has gone from $550 to $713.
Software companies have greater growth potential than hardware companies.
Those people who will buy desktops, laptops and phones have done so. Increased market share is about wooing customers to switch. It is no longer expansionary trends of the Wild West.
Facebook, Google, Lingo Media — they all get it.
Lingo Media is a market pioneer. It was selling educational products in China in 2001 as one of the early foreign stakeholders to partner up with Chinese government agencies under support by the Canadian government. This led to the sale of 530 million units and the capture of 60% of the market share in China’s primary school.
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Now Lingo has morphed into an educational software company to teach English as a second language. It addresses the significant English literacy needs to those individuals looking to learn the language.
Lingo has gamified the language learning process. Its technology is built on an eLearning platform with more than 2,000 hours of material and thousands of modules for people of all ages and skillsets.
The business model is based on Pay-for-Service arrangements.
Lingo built its learning software to work well with the challengingly slow Internet broadband of developing countries so as to permit reaching out to rural communities or countries where Internet infrastructure is lacking modernization. In telecommunications, broadband is a wide bandwidth data transmission with an ability to simultaneously transport multiple signals and traffic types. The medium can be coaxial cable, optical fibre, radio or twisted pair — it does not matter. But what matters is speed of transmission, a problem in developing countries where the telecommunications infrastructure has not kept up with new technologies.
Traditional games are memory-intensive and transfer huge datasets over the Internet. Lingo’s software designers found ways to reduce transmission time with unique software architecture that bypasses the snailpace of aging broadband networks.
I am also especially intrigued by the way Lingo Media has managed to develop a user interface and sound interpretation engine to permit students to self-monitor their English pronunciation and receive feedback for their progress.
One of the most critical challenges in mastering a new language is to pass from receptive (hearing) to speaking with the right accent. Lingo’s unique approach is based on pronouncing phonemes correctly. (A phoneme is a single “unit” of sound that has meaning in any language). There are 44 phonemes in English —in the standard British model — each one representing a different sound a person can make.
Lingo’s software gives students instant feedback as to whether or not their pronunciation of each of the phonemes is correct as per Standard English. This is an invaluable tool for online learning as students can self-monitor their progress and practice pronunciation at their leisure.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>