WhereverTV Broadcasting Corp. (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 sizeable 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.
Mark Cavicchia Email Contact
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