Quote:

---

BIG's perspective on UltraFlix's market potential:
I wanted to provide some perspective on what I feel we can expect to see Year 1 in terms of revenue for UltraFlix. Fellow BIG member JR Kunkle assisted with some of the market data.
There were approximately 17 million 4K TV's sold in 2013 & 2014. The projections for 2015 is 36 million 4K TV's, which will bring the combined number of 4K TV's up to 53 million in total.
Assuming that 50% (This is a SWAG by me) can stream UltraFlix & 5% of consumers buy content from UltraFlix, it would mean that there would be potentially 1.3 million UltraFlix users.
Our understanding on Ultraflix's transaction costs are listed below:
» Rentals will make up approximately 90% of revenues.
» Live events will make up approximately 10% of revenues.
» Live events will be priced at $19.99.
» The average cost is currently averaged at $4.00.
Keep in mind that as more and more blockbuster content is made available on UltraFlix, the average cost will become approximately $8.99.
With the figures given above on UltraFlix's transaction costs, let me give you an example of the revenue potential. Assume that a costumer will stream 4 pieces of content a year (movies, music, IMAX, IDTV) at approximately $7.50 per title. That alone would bring in a total of $39 million dollars in one year. We believe this example is quite conservative.
These numbers are purely speculation and are guestimations, but NTEK will soon be releasing their 2015 projections and should give us more concrete figures in terms of revenues.
Regardless you have to be dense to not see the incredible potential if in fact these figures are close. I mean this is only Year 1 of launch folks!! Can you imagine the 5 year glide path? Crazy potential for just UF alone to mention nothing of the other operating divisions and affiliates.
Thanks for being a part of our BIG family!

---