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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV

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To: mike.com who wrote (13065)4/17/2002 11:27:35 PM
From: richard badauskas  Read Replies (2) of 13157
 
Looks like ACTV will get 10% of the revenues for producing the NASCAR races. If we assume that the service attracts about 100,000 viewers at $99 for this years racing series then total revenues are $9.9M or $990,000 to ACTV. If you triple this number then you are at about $3M for ACTV. So the low figure comes to about $250,000 per quarter and the high comes to $750,000 per quarter. There will probably be an increase in the price of the service next year.

This deal really illustrates why the whole interactive sector is so screwed up. These deals do not really bring in a lot of money (assuming my figures are reasonable guesstimates). Would be interesting to know how much resources ACTV will need to employ and at what cost to produce these races?
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