In the recent announcement (it was about 80 pages) as well as the information memorandum you would have received as a sharehoder before nov 29 meeting, there is information re: the size of the market MWC is entering. The technology , if it works would revolutionise information transfer and would be used globally and therefore MWC enters the global market which includes cable and pay TV consumers and people that pay to rent videos and dvd's and as well as internet users. The owners of media would have to pay MWC licence fees and ongoing royalties to use the AP technology on their distribution networks. So MWC would get a cut from the big co's (licence fees and royalties) as well as a fee from the end user (consumers.) each time they watch a movie, or use the technology for video conferencing or whatever other application it eventually gets used for. At present this Australian market is valued at around $7 billion. However the interesting number to consider is the rest of the world markets revenue figure for 2002 in the same market MWC will be targeting. This is presently at US$ 177 Billion and rising. Subscription tv makes up approx 60 % of this revenue closely followed by video/dvd rental. This is exactly the segment in which mwc will be competing over the next few years.The revenue forecasts for 2006 are around $300 Billion US per year in this market.
The reason why informed and astute sources are predicting such big things for MWC is bc if it works and is revolutionary it will probably get a large chunk of these revenues. The pay tv networks and video/dvd outlets will become will be unable to compete as the cost of providing a pay per view to a consumer will be reduced by mwc technology as no broadband /satellite is required-only copper phone lines. That doesn't even take in to account the convenience and ease of use that vod will provide.
Anyway, read over the document for more detail on rev projections size of markets etc, but one thing is for sure, if it works it will be another microsoft. My reservations are that it won't work or the technology is half baked. Make no mistake if it is legit it will make history a la bill gates and microsoft
