lets help investors make informed decisions and not ones based...

lets help investors make informed decisions and not ones based on "media hype"

assume RMA generates say $200,000/mth new income from subscribers, deduct 60% to movie studios and another 10% to Yahoo - leaves 30% gross margin of $60,000 prior to other overheads.
They have staff costs alone of $250,000/mth without anything else - to break even, they need monthly revenues of $1.5-$2.0, for a start up with fierce competition and no other cashflow -this is a poor business to invest in!

Theres no doubt the retail market will move to IP downloads via set top boxes or pc's, however it will inch that way over the next 2 years, in the meantime you need cashflow.

The winner in this space will be the coy that has an existing business with positive cashflows and can enter this market an extension of their busines - not as their only business.

RMA will struggle to make it as they dont have positive cashflows or deep enough pockets - look what capital and time Foxtel required to break even!

RMA's prospects to be acquired are also slim, the dont own the technical IP, they dont have exclsuive licenses with the studios so what can they sell????

I am stunned the market still sees this stock worth 5 cents, fully diluted it has over 300m shares on issue, if it made $1m in ebit it would be capped at around 10 times earnings or $10m market cap, what's 300m shares into $10m??? - this assumes they make $1m ebit!