Archer;; I disagree with your take on SRCM.
1. SRCM technology is patented!!! If any of the traditional online providers,
(i.e. America online, Prodigy, Mindspring, and on and on) want to go after the
TV market, they will need to license SRCM's technology. These places SRCM's
value well over $300 per share (i.e. 50/50 spilt of profits by the online guys
on the TV). AOL, for example, could have channel 40 designated as AOL TV and
anyone that subscribes to AOL can access the same content over the TV. Pretty
good way for AOL to go after the non-PC owners wouldn't you say?
About the patents: Here are some company's that will need to license SRCM's
technology: Microsoft (if the want WebTV to run over the cable lines, it's
now done over phone lines), WorldGate Communications (analog system only, a
move to digital and they would be infringing-isn't the cable world going
digital anyway?), the license list would probably run 10 pages long if I
continued it-so I won't.
2. You state that SRCM's market potential is small. I would hardly say
the 65 million cable subscribers is a small market. If this market is small,
I guess AOL's PC market (13 million subscribers) is puny.
3. SRCM's technology can bring the $300 billion direct catalog market to the
TV set. There is no other way these companies can sell their goods over the
TV without using SRCM's technology. Remember, SRCM gets a percentage off the
top from all sales using its technology. 10% of $300 billion ($30 billion
annually) is nothing to sneeze at is it Archer?
4. SRCM's technology will become the way cable operators get their analog
subscribers to upgrade to digital. It may be difficult for the cable operator
to get the end user to pay $10 more per month for just 400 additional channels,
but there marketing could be made very easy with e-mail, the Internet, and
interactive TV all made possible by SRCM. By the way, check the fine print in
the FCC ruling on HDTV in 2006. After 2006, cable will not be sending any
analog signals, everyone of us will have a digital set-top box.
This is just a taste of what SRCM has to offer, you do the math and the real
value of SRCM could be something north of $300 per share. |
