Research, page-2224

Metrics are what drew me to this company and the potential for rapidly growing subscriber bases across multiple regions. TV2U have always attempted this and had the underlying knowledge of which markets to target and to some extent how to achieve this, unfortunately with little success up to now as far as execution and deployment, the devil is in the details.

There are a number of significant points which will hopefully be apparent as the launch of istream takes affect if successful.

The launch timing will coincide with both the WC, obviously a massive factor for uptake, and the third quarter which is usually a good one for subscription uptake services statistically moving towards end of year globally.

When looking at the average incomes across Indonesian regions it will be very interesting to see where TV2U and Indosat have contracted to set the price points for respective sevices. I am not sure what to make of the values prescribed on the staging platform as shown yet. Average wages for Indonesians can range from approx $180aus p/mth lower end to $600 and much higher as higher level employment is reached, obviously with diminishing grouping size.

The target must be for a price point accepted by the greater masses, therefore between low and middle income range and most importantly the marketing must be reachable and pervasive to these masses.

This is certainly why the mobile aspect is so promising, it allows a cost effective method to distribute SMS or linked advertising to possibly notify existing users of the services and apps for use giving great marketing reach, which has already been hinted at. Couple this with the fact Indosat have this capability and much more through their existing resources and the prospective numbers can become quite interesting. It is easy to focus on the content as this is the heart of the system, but the size of the companies that TV2U has targeted and is dealing with adds the arms and legs to get things running. This is one aspect that TV2U have certainly excelled at.

If rapid uptake is seen around launch and is backed by a solid pricing then the revenue models can certainly become substantial quickly. If TV2U can secure even $1.5aus a month per user, and retain 2 million users moving towards end of year that equates to $36 million aus over 12 months. Add the PE ascribed by the market if growth is rapid and continuous and already the company has grown substantially. Larger numbers assigned to ARPU or subscriber base show the true potential for movement if things progress exceeding well after launch and into the future.

There are still many risks after launch including, retention/churn, service disruptions, poor contract management and fiscal planning on the companies behalf to name a few.

I am quite interested to see what numbers we may see as the dates get closer. Likewise if PGASCOM or Latam launch as well further forecasting can be carried out as the efficiency of marketing and deployment can be seen by all.

Hopefully if successfully launched with Indosat at WC time the marketing will allow huge uptake and get TV2U's name out there, this may then allow any association with PGAS to be recognised at their respective launch and help grow the TV2U brand across the region. It will remain to be seen how this aspect plays out.

It will be interesting to see if this week's expected announcement has any hints to prospective numbers or if they take a more conservative approach to phrasing and forecasting than previously. Either way 6-8 weeks is not long to wait now.