Right. In addition to operational expenses, NTEK needs a big pile of cash. But why all of a sudden? And why so much? Here are some thoughts:
1) Pay down $2 million in debt. I'm not sure what the urgency is for this. Perhaps it's required if NTEK and shareholders agree to pursue other/better financial options.
2) Increase its content budget from $2 mil to $10 mil. This could include deals with other movie production studios over the course of the year. However, this financial need seems too large and sudden to simply be an oversight in their budgeting forecast from the shareholders meeting. Something must have happened since then and now. I'm wondering if the significant increase in content budget is for live streaming of sporting events. It's hard not to think about this, considering the major milestones that happened over the past week alone--the first NFL game streamed live over the Internet to an international audience and NTEK's successful live streaming of 4K content from coast to coast. Most professional sports teams already have 4K cameras. Some are already recording pre- and post-game events (like the 49ers). And some are even recording big games in 4K. You can bet the World Series is being recorded in 4K. Why? Because 1, 3, 5, and 10 years from now the MLB World Series champs will want to sell videos with highlights of the World Series and bonus materials to anyone who wants to purchase them. And do you think people will want to watch it in HD when they have 4K TVs?
3) Protection against a hostile takeover/unwanted buyout. As it stands now, NTEK's valuation is ridiculously low and it needs to protect itself, in case another company decides to swallow us up for a song. This type of protection costs a considerable amount of money.
1) Pay down $2 million in debt. I'm not sure what the urgency is for this. Perhaps it's required if NTEK and shareholders agree to pursue other/better financial options.
2) Increase its content budget from $2 mil to $10 mil. This could include deals with other movie production studios over the course of the year. However, this financial need seems too large and sudden to simply be an oversight in their budgeting forecast from the shareholders meeting. Something must have happened since then and now. I'm wondering if the significant increase in content budget is for live streaming of sporting events. It's hard not to think about this, considering the major milestones that happened over the past week alone--the first NFL game streamed live over the Internet to an international audience and NTEK's successful live streaming of 4K content from coast to coast. Most professional sports teams already have 4K cameras. Some are already recording pre- and post-game events (like the 49ers). And some are even recording big games in 4K. You can bet the World Series is being recorded in 4K. Why? Because 1, 3, 5, and 10 years from now the MLB World Series champs will want to sell videos with highlights of the World Series and bonus materials to anyone who wants to purchase them. And do you think people will want to watch it in HD when they have 4K TVs?
3) Protection against a hostile takeover/unwanted buyout. As it stands now, NTEK's valuation is ridiculously low and it needs to protect itself, in case another company decides to swallow us up for a song. This type of protection costs a considerable amount of money.
