I emailed Gary and Rahul with the following email and got a reply today.
Hi Gary/Rahul
My name is xxxxx and I hold 12,000,000 shares in Syntonic.
Firstly I want to start out by saying that I am very happy with my investment so far despite the shareprice having fallen since I invested.
I have a couple of questions that I would like to ask you. I, in now way expect any material disclosure. Being an s708, I'm well aware of the rules around these things.
You mentioned in the webinar that you are meeting fund managers and instos in Aus, next week. My own broker is part of one of the biggest broking houses in Australia and regularly gives me information on companies that do roadshows that appear interesting or worthy of investment.
I'm curious as to what your strategy is around revenue projections as this will no doubt be a topic of discussion or required information for any insto to recommend this to their clients. I just can't imagine a scenario where this does not get asked of you and if the information is not made available, I simply don't see these fund managers investing. Will you be giving revenue indications to these fund managers and if so, do normal shareholders also get this information? I personally would love some idea of projected revenue but understand this is not in syntonic's immediate strategy to disclose this.
Regarding your upcoming OTT, there isn't much in the way of details but I've tried to think about the various ways this product could work.
My hypothesis is that Netflix and other content providers will do a direct billing arrangement with telcos such Verizon and AT&T. This will open up a large and lucrative market for Netflix and other content providers (postpaid, US customers). Netflix would then give the telcos a payment for each user they bring to them as well as a trailing but smaller percentage for each subsequent month. This will be the normal subscription plans. Data will be charged as normal
On the sponsored side, I see this as brands either providing the data free to consumers by sponsoring their use (yay CSP) OR for those that don't want subscriptions, individual content (shows) could be sponsored by an advertiser for a one off view.
Is this close to what you guys have planned for the OTT?
Looking forward to your response
Kind regards
Xxxx
Reply:
Hello xxxx,
Apologies for coming back to you only now.
We had a very busy couple of weeks with the investor meetings in Australia. The aim of the Investor Roadshow was to raise awareness of the Syntonic business and investment opportunity outside of the retail sector.
We don't view private investor meetings as an appropriate vehicle for publicly disclosing revenue projections. We have been hesitant to provide revenue projections externally. We strive for accuracy in our communications with the investment community. It would be challenging for us at this time in the company's maturity to stand behind these forecasts given their large uncertainty due to lack of historical information and the significant impact 1 or 2 deals have on the overall projection.
In regards to OTT, our infrastructure business, .i.e. licensing our CSP, does accommodate the scenario you mentioned below. Our OTT service will be cross carrier where Syntonic is the distributor, either reselling or curating free content, as data-free or ad-sponsored. We highlight cross carrier because that is something that no specific carrier can offer a content provider who targets demographics, not operators networks.
On the sponsored side / brands, you are correct; and this is close to what we are developing.
Thank you for your support,
***Email ends****
@upstreamgold - exciting times ahead!
