TVTV WhereverTV Broadcasting Corporation (PK)

WhereverTV Broadcasting Corp. (OTC Pinksheets: TVTV) today released an update to shareholders on the recent progress of the Company, in addition to future plans and prospects moving forward.

WhereverTV reached several
important milestones in 2012.

During
2012, the Company continued to benefit from the rising public demand for “over
the top” television services and a heightened awareness of WhereverTV’s Greek
& Arabic cable television subscription services.

 

Mark
Cavicchia, CEO of TVTV stated, “We experienced the best year of subscription revenues
in our brief history as a public company and signed a number of carriage
agreements with US cable networks that will enable us to launch a US cable
offering in 2013.  Our overall performance
in 2012 validates our ‘go to’ market strategy for launching a stand-alone ‘over
the top’ cable service in the United States that will compete with major cable
and satellite companies.”

“It
will take time to establish significant market share in this extremely
competitive market of cash-rich incumbents; however, our industry-leading content
and infrastructure partners will provide us with the ability to exploit
WhereverTV’s competitive advantages.  Among
those advantages are WhereverTV’s lower cost infrastructure and customer
acquisition/service costs that will be passed onto consumers in the form of
lower monthly charges, a robust content offering, and superior customer service.
On the back of these benefits, we anticipate robust revenue growth and nearing
positive cash flow by the end of 2013.”

 

Evolving and growing WhereverTV’s
core technology platform.

Mr.
Cavicchia continued, “We increased reach onto new Connected TV platforms beyond
our Roku and Boxee applications in 2012, and also consolidated our in-language
subscriptions into a single application that was published as WhereverTV (for
Droid phones and Tablet PCs), in addition to WhereverTV for GoogleTV (for media
streaming devices and connected televisions running the GoogleTV operating
system).  These two new applications were
published in November.  We also completed
development of our beta application for the iOS operating system, which will
give millions of iPhone and iPad users the ability to watch their WhereverTV
subscriptions on Apple devices starting in 1Q2013.”

                                             

“We
also have begun development of the WhereverTV digital video recording (DVR)
application that will eliminate the need to have a stand-alone recording device
in the home and expect to launch this service also in early 2013. We are also
in the process of moving to a more robust customer billing and support system
that will include many self-service features expected by our growing customer
base.”

 

Content aggregation and
distribution pipeline remains active.

“In
2012, we continued to assemble the necessary content required to launch our basic
US cable service. By the end of calendar 2012, WhereverTV had obtained carriage
agreements from more than 50 US television networks as it nears its goal of 80
channels needed to launch a US service offering.  We expect to secure the remaining channels and
launch this service during the first quarter of 2013.”

 

“We
continue to partner with leading service organizations that will be able to
help us rapidly penetrate the US market with our new content offerings.   In February 2012, we signed an exclusive
marketing and distribution agreement with the Greek Orthodox Archdiocese of
America and became the sole broadcaster of the first ever US-based Greek
Orthodox television channel, GOTelecomTV. This relationship gives us access to
more than 1.5 million members in the USA and Canada. In May 2012, we formed a
marketing partnership focused on the development a new Arabic Entertainment
Services division.  We expect to launch a
20+ Arabic package in February 2013 aimed at the sizable and rapidly growing
Arabic speaking population in the Americas.”

 

Capital market support and positive
cash flow on the horizon.

“2012
was a year of transition for TVTV, as we continued to aggregate enough content
to launch a US cable service.  Without
the cornerstone US offering yet available, subscription revenues in 2012 were
nearly $100,000, an approximate 500% increase over 2011. Greek and Arabic
in-language content subscriptions, coupled with other in-language sales
commissions, accounted for 100% of this revenue.”

 

“While
margins will continue to fluctuate over the near term, we will begin to see
improvement in the year ahead as a result of rising subscription sales,
especially in our new US service offering, as well as the monetization of
commercial air-time inventory. Our ongoing revenue mix shift, the introduction
of higher-margin service offerings and products, including the WhereverTV DVR
service and multi-device subscriptions, will also improve our chances of
reaching profitability.”

 

“Until
we achieve greater revenues from content subscriptions, we must obtain
additional funding and access capital when prudent and available. In May 2012,
we assumed majority control of a public entity via a reverse merger, which
included $500,000 in equity financing. The public offering was led by US investors
and, for the first time, allowed WhereverTV to raise funds from public markets.
Despite this financial support, we believe that our market capitalization has
yet to fairly reflect the underlying value of our business and that we will be
required to pursue additional funding during 2013. In October 2012, we
officially changed the name of the company to WhereverTV Broadcasting
Corporation to reflect our corporate focus and our ticker symbol is now TVTV.”

 

“We
continue to expect robust revenue growth in 2013 as we launch our featured
service aimed at the 110 million US households consuming cable or satellite
television services.”

 

The Year Ahead.

Mr.
Cavicchia concluded, “In 2013, we will diligently pursue our business plan,
which contemplates nearing a cash flow positive on a month over month by the
end of 2013.  In the short term, however,
we expect that our quarterly revenue will remain variable as our revenue mix
evolves to include a higher proportion of US subscriptions during the second
half of the year.”

 

“We
are on track to achieve our long-term objective of becoming the first ‘over the
top’ cable company in the United States. We have tested our platform by
launching in-language content offerings over the past eighteen months necessary
to attract interest from major US television networks, and are now
well-positioned to move into the mainstream US cable subscription market. Our
goal is to have at least 30,000 subscribers within the first full year of
service.”

 

“I
welcome new shareholders and also thank our current shareholders for their
confidence and trust. I also thank our employees, partners and distributors for
their contributions in our continued growth and success.”

 

Mark
A. Cavicchia

Chief
Executive Officer

 

WhereverTV is the next generation
subscription television service, providing consumers with programming identical
to existing cable & satellite providers. WhereverTV delivers the same
channels and events via an over the top (OTT) service platform to
single-family, multi-family, high-rises and businesses throughout North
America. The Company's platform downlinks, encodes and broadcasts linear
television programming cross the Public Internet to Connected Televisions,
blu-ray players, set top boxes, tablet PCs, laptops, and smartphones. The
WhereverTV platform manages broadcast rights across geographies and provides
individual customer viewing experiences based on customer locations
(geo-targeting) and content-rights management (subscriptions).

This news release contains forward-looking statements, which may
not be based on historical facts. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results events or developments to be materially different from any future
results, events or developments expressed or implied by such forward-looking
statements. These factors should be considered carefully and readers are
cautioned not to place undue reliance on such forward-looking statements.
Except as required by applicable securities laws, the Company disclaims any
obligation to update any such factors or to publicly announce the results of
any revisions to any of the forward-looking statements contained herein to
reflect future results, events or developments.