TO ALL: Reply of E-mail from F. Carcione, CEO
Hello,
Nice to here from someone interested in TelVue.ÿ In regards to some of your questions, I offer the following responses:
1)ÿ Our intention, currently, for Internet PPV ordering is to partner with various content providers such as WWF, WCW, Cyber Bouts, Prevue Networks, etc. to allow cable subscribers who visit their Web sites to also use those sites as an ordering vehicle.ÿ We intend to charge a monthly license fee and a per transaction or "hit" fee for those entities to facilitate Internet PPV ordering through TelVue.ÿ At this time, we don't anticipate an increase in overall buy rates.ÿ However, we feel as services, such as Web TV and World Gate gain penetration, monthly PPV buy rates could be positively impacted.ÿ Therefore, in the near term, we expect to see incremental revenue from the Web via sign up and monthly fees and long-term revenues from increased buy rates.ÿ Additionally, we are negotiating with HBO and Showtime to utilize our ordering site for instant upgrades via the Web for cable subscribers.ÿÿ Our recent demo at the CTAM National PPV Conference in Los Angeles caused quite a stir among cable system personnel and content providers and appeared to be the talk of the conference.
2)ÿ We have forecast for 1998 the following:
ÿÿÿÿÿÿÿ 1,244,000 new addressable subscribers
ÿÿÿÿÿÿ $6,989,441 in Gross Revenue (does not include Internet orders)
ÿÿÿÿÿÿ $4,245,916 Gross Profit
ÿÿÿÿÿÿÿÿÿ $970,498 Net Income
ÿÿÿÿÿÿ $1,800,000 Loan Repayment to H.F. Lenfest
3)ÿ At this time, Mr. Lenfest has no intention of converting his preferred stock.
I would be happy to speak with you personally, at any time.ÿ You can reach me at (609) 273-8888 or visit our web site at www.telvue.com.
Thank you
Frank J. Carcione
President & CEO
TelVue Corporation
fcarcione@telvue.com |
