Update from Bennie
I want to preface this by saying that there are tons of details I cannot and will not share with anyone. No PM's or texts asking please as I won't answer.
My pissed off and concerned level was at an 11 on a scale of 10 today around noon. Right now I'm at a 2 and only 2 because I'm still very irritated about the poor communication from management. It's not hard nor should be an effort to comprise a comprehensive investor update that exudes excitement while created confidence. This can be done even WITHOUT divulging non public information or details. This was discussed in length that a better job MUST occur starting TODAY to keep investors informed and it starts from the top down.
➡ Dilution
The first round of AS increase from 700MM range to 990MM was to facilitate some existing contracts for content, satisfy contractual obligations to employees and execute additional content deals. It very quickly became apparent that a significant investment would be required within the operations to accelerate the internal workflow relative to 4K conversions. Folks that's why we have only been seeing a few films a week (if that) show up on UF. The sheer volume of already APPROVED films still yet to be converted is significant and has been for quite some time. Think about an assembly line at an automaker. The workflow associated with maximizing speed, efficiency and quality. Same thing applies with NTEK's conversion process for stock film.
So the second round went to revamp the operational workflow improving speed and efficient nearly 6 fold. I believe we will all see the fruits of this effort over the next few months. Content, content, content. Jaws will drop with the content secured and players involved. This did not come cheap.
Are we done with AS increases? As of now they feel VERY confident that the current structure and deals secured will set the stage for overall profitability by this fall. Once this occurs it will have a snowball effect as subscribers increase on a monthly basis.
➡ Content
Massive content deals are either closed or in progress with nearly ALL 6 MAJOR studios. These content deals include some exclusive deals and complete catalog. Also some significant deals happening with smaller studios as well as some professional sports franchises and TV companies. Several live events in the works as well as a significant partnership with a major TV manufacturer. All of these developments will be made public and available THIS summer.
➡ UF Subscribers
UF subscribers has been growing daily but significant revenue requires significant content AVAILABLE. (See my point on dilution above relative to the need to increase speed and execution). We are currently in the 100-200K range with a CONCRETE plan to get to 1MM by the end of this year.
➡ UF Availability
By the end of THIS summer UF will be available on nearly ALL major TV manufacturers AS WELL as the most well known streaming boxes.
➡ Audits
Audits progress has slowed due to the pressing need to address the internal workflow efficiency. Work to complete the audit will be in full swing come September.
I hope this helps. As I said I feel confident yet cautious. Cautious because I never dreamed we would be sitting here in the sub penny range. My confidence now with management is high including Peter with the caveat that communication must improve. Bare with me answering any additional questions as my plan is to get back home and resume my planned vacation with the family for the 4th.
I want to preface this by saying that there are tons of details I cannot and will not share with anyone. No PM's or texts asking please as I won't answer.
My pissed off and concerned level was at an 11 on a scale of 10 today around noon. Right now I'm at a 2 and only 2 because I'm still very irritated about the poor communication from management. It's not hard nor should be an effort to comprise a comprehensive investor update that exudes excitement while created confidence. This can be done even WITHOUT divulging non public information or details. This was discussed in length that a better job MUST occur starting TODAY to keep investors informed and it starts from the top down.
➡ Dilution
The first round of AS increase from 700MM range to 990MM was to facilitate some existing contracts for content, satisfy contractual obligations to employees and execute additional content deals. It very quickly became apparent that a significant investment would be required within the operations to accelerate the internal workflow relative to 4K conversions. Folks that's why we have only been seeing a few films a week (if that) show up on UF. The sheer volume of already APPROVED films still yet to be converted is significant and has been for quite some time. Think about an assembly line at an automaker. The workflow associated with maximizing speed, efficiency and quality. Same thing applies with NTEK's conversion process for stock film.
So the second round went to revamp the operational workflow improving speed and efficient nearly 6 fold. I believe we will all see the fruits of this effort over the next few months. Content, content, content. Jaws will drop with the content secured and players involved. This did not come cheap.
Are we done with AS increases? As of now they feel VERY confident that the current structure and deals secured will set the stage for overall profitability by this fall. Once this occurs it will have a snowball effect as subscribers increase on a monthly basis.
➡ Content
Massive content deals are either closed or in progress with nearly ALL 6 MAJOR studios. These content deals include some exclusive deals and complete catalog. Also some significant deals happening with smaller studios as well as some professional sports franchises and TV companies. Several live events in the works as well as a significant partnership with a major TV manufacturer. All of these developments will be made public and available THIS summer.
➡ UF Subscribers
UF subscribers has been growing daily but significant revenue requires significant content AVAILABLE. (See my point on dilution above relative to the need to increase speed and execution). We are currently in the 100-200K range with a CONCRETE plan to get to 1MM by the end of this year.
➡ UF Availability
By the end of THIS summer UF will be available on nearly ALL major TV manufacturers AS WELL as the most well known streaming boxes.
➡ Audits
Audits progress has slowed due to the pressing need to address the internal workflow efficiency. Work to complete the audit will be in full swing come September.
I hope this helps. As I said I feel confident yet cautious. Cautious because I never dreamed we would be sitting here in the sub penny range. My confidence now with management is high including Peter with the caveat that communication must improve. Bare with me answering any additional questions as my plan is to get back home and resume my planned vacation with the family for the 4th.
