QBID
From the Inside,
I would like to take a minute to explain our motivation related to the proposed sale of the United States English and Spanish television rights of BingoTelevision for between 7-8 million dollars.
Triangle Multi-Media, less than 1 year ago, set a course to create and produce interactive television programming at affordable costs. In most television markets, up to 5 tiers of television stations exists.
You have the network stations, public broadcast stations, wealthy independent stations, the Spanish station and the secondary independent stations. The secondary independent station faces financial obstacles in its effort to provide programming the likes of Jeopardy, Wheel of Fortune, Oprah or Inside Edition. Also, the secondary independent station needs an abundance of programming and content to fill their prime access time slot, the time slot which leads into prime time programming.
Both BingoTelevision and AuctionsTelevision were created to fill the programming requirements for the secondary independent stations. In order for the secondary markets to receive our programming, Triangle Multi-Media would need to either 1) contract with a national syndicator to distribute our show; 2) distribute the show ourselves; 3) enter into partnership with a national syndicator; or 4) sell the show to a syndicator.
So lets look at each of the choices mentioned above: 1) if we contracted with a national syndicator, we would have no control over how the show would be distributed; and, we would have to guarantee their revenues; 2) unless we are distributing at least 12 hours per day of syndicated programming, the cost of both satellite and uplink time is exorbitant; 3) entering into a partnership with a national syndicator can be a very profitable relationship, but only if Triangle Multi-Media was syndicating 4 or 5 hours of
programming per day; because, if you have 4 or 5 hours of programming and the syndicator drops 1 or 2 hours from their schedule Triangle Multi-Media would still have a strong, positive cash flow from the remaining programming.
Distribution contracts with a national syndicator are only for 13-27 week periods, which can make it difficult to attract quality production talent if you only have 1 or 2 hours per day under syndication.
Triangle Multi-Media chose to accept the proposed sale of domestic BingoTelevision because it gives us the funding required to develop more programming in order to meet the 4-5 hours of syndicated programming necessary to secure long-term revenue. Also, it enables us to remodel the television studios so that we may attract a major network affiliation and offer a broader spectrum of studio capability. The cash and asset value from the proposed sale of BingoTelevision allows Triangle Multi-Media to retire short-term debt and it enables us to make a long-term financial plan. As I discussed in my recent radio broadcast, Triangle Multi-Media is in negotiations to acquire a satellite uplink company. The proposed sale of BingoTelevision would put us in a strong financial position to complete this potential acquisition.
The television, radio and Internet programs created by Triangle Multi-Media are made to either sell or for distribution as discussed above. Management will make the decision on a case-by-case basis, always ensuring the long-term benefit of both Triangle Multi-Media Limited, Inc and its shareholders.
Some items which were not mentioned in the press release of 6/8/00:
1. Triangle Multi-Media has two more game shows ready for production in the near future.
More to follow on this.
2. We have made an alliance with Medical Educational Television, a privately held entity, to produce and distribute continuing education for the medical field on CDs with both an audio/visual and an interactive capability. Dr. Steven Frank M.D., a well-known and world renowned critical care specialist, is leading the team of instructors for this project. The CD?s will be 30 minutes in length and will be distributed twice monthly through The Medical Journal Club. This project will begin no later than September 1, 2000. It is anticipated that the revenues generated from this project will far exceed the projected revenues from BingoTelevision. Additionally, the medical television production will require approximately 7 hours per month of studio and production time while BingoTelevision ties up about 50 hours per month. Clearly, this will enable Triangle Multi-Media to better utilize production and studio resources.
Per our transfer agent, OTR, Inc., the following UPDATE for the number of common shares issued and outstanding, as of June 6, 2000, is provided for your info:
Free Trading 67,323,891
Restricted 7,093,096
TOTAL 74,416,987 outstanding and issued
Per our certified financial statement (thru March 2000), the figures for Preferred Stock reserved for
conversion, Preferred stock .001 par convertible at holder?s option at rate of 1 Preferred for 10 common,
and Preferred Class B stock no par non-voting, non-convertible, 5 year callable at 8.25% cumulative
interest remains the same as of today.
Private placement investors have primarily funded Triangle Multi-Media?s projects. These investors started this investment with a long-term commitment to Triangle Multi-Media?s objectives and continue to do so today. Each week we are faced with upgrading existing equipment in order for us to meet our continued growth and development. These investors have continued to meet such demands.
I would like to say this one more time, in writing, for the record. As was stated on our certified financial statement (thru March 2000) Triangle Multi-Media has only sold $125,000 in stock over the last year. That figure remains the same today.
My next posting on ?From the Inside ? will address the merger of Triangle Multi-Media and Triangle Broadcasting and the role of a potential third entity. I expect to post this by the end of next week, 6/17/00.
As always, THANK YOU for your support.
Frank Olsen
CEO/President |
