The 15 cities would cost us $100,000 a month for the first 12 months to launch. We where prepared to do this. When I began talking to Alki about also running VU on FilmOn we talked about our target demo. I realized that the demo we are going after watches almost everything online. If we can save 1.2 million the first year in broadcast overhead and reach our target demo in the process it is a win.
This deal saves us the broadcasting cost and lets us reach the most profitable target demo. Instead of 15 cities. We are available in every city. They are supplying us the actual broadcast system which can be used for broadcast over traditional mediums as well. After 10 months we will be positioned to begin broadcasting on cable with out any affiliate costs.