I had a very pleasant conversation with Mr. Roth today and continue to be tremendously excited by the possibilities that lie before ISDN.
My primary concern has been ISDN's cash/credit situation: i.e., its ability to continue operations as it ramps up its new technologies and ventures. Mr. Roth was frank in saying that the money situation has been tight and that they have been looking for ways to raise capital. He has put a half-million of his own money into the company, but said he is confident in the company's ability to raise outside capital. I asked him about a reverse split, and he said that such a step is not under consideration.
The audio technology and music/entertainment site are ready to go. I didn't press him for details on timing, but we should see news and the launch of the OEN site within the next few days. He said both "the next day or two" and "Monday or Tuesday" when talking about the immediate future, and I didn't ask for clarification as the exact timing isn't that important to me. Suffice it to say that the gist was that we'll see tangible developments very shortly.
I asked him about marketing for the OEN site, and he indicated that he's working hard to secure some significant strategic partnerships. I asked specifically about partnering with a search engine, and he said he couldn't go into any details for at least a couple of weeks. As a disclaimer, I should say: the answer he gave did not offer any suggestion about whether he is or isn't talking to the search engines about a partnership, and I didn't ask for any confirmation on timing, so take "couple of weeks" with a grain of salt.
The video delivery system still needs some work and capital; it is a few months off, assuming they are able to raise the money needed to complete development.
We talked briefly about different business segments the company is (or will be, assuming the video technology is completed) positioned to pursue. The potential really is astounding. The music site is the immediate focus, and the video technology will allow for pay-per-view video delivery. It sounds like he's negotiating right now to build a video library for online delivery. IP-based conferencing is also a promising niche, and Mr. Roth clearly has ambitions in this direction.
I asked about merchandising as part of their strategy for the entertainment sites, and he confirmed that they are going to pursue this aggressively. It sounds like this will go well beyond the sale of CDs. I'd imagine band/concert paraphernalia will be available (concert T-shirts, etc.). He specifically mentioned sports merchandise.
Sports merchandise! This makes my mind race! Could ISDN deliver pay-per-view "classic sports" packages via its video technology? I imagine it would be difficult/expensive to secure rights to the big American sports classics: Super Bowl, World Series, NBA championship, Final Four, etc. But think about the potential for delivering classic footage for "niche" sports, such as track and field (huge potential audience domestically and internationally, despite its second-class status on the contemporary US sports scene). I'd pay to watch Steve Prefontaine's American record in the 5,000 meters at the '72 Olympic Trials, and thousands/millions of track nuts around the world would do the same. Track, gymnastics, figure skating, golf: sports with wildly loyal followings -- fans who are intensely nostalgic -- and tons of great footage that's rotting away in archives.
I did not raise the possibility of "classic sports" offerings with Mr. Roth, because I wanted to focus on the story he was telling me. But I see this as an obvious direction for expansion, given the promise of the pay-per-view video delivery system ISDN has on the way. It gives me chills just thinking about it.
My own chills aside, I should emphasize something that Dave noted in earlier postings: Mr. Roth was emphatic about his desire not to hype the stock. He is clearly very excited about the company and is optimistic about its prospects, but he is trying to maintain realistic expectations about the company. Which is to say, any "hype" you read in this message is strictly my own. |
