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Technology Stocks : Aahh...iNEXTV (AXC) The NEXT Thing! -- Ignore unavailable to you. Want to Upgrade?

To: Michael Olds who wrote (3324)	3/31/2001 8:25:01 PM
From: DrD	Read Replies (1) \| Respond to of 4169

Michael, quite a few opinions. While I won't take time to respond to all of your comments tonight (I have some other business on tap). Also, I'm not too concerned about having my reasoning demolished (especially by you - just a joke.) But anyway, to correct you: 1-3 does not give us 2,500,000 viewers. Rather it gives us 2,666,667 viewers. On item four, each viewer watches three video segments/day. Of course, that's an ideal situation. Most models are idealized, and then are modified as official or better information becomes available. In this instance, as the car buffs watch iNEXTv's auto content, I'm certain they will watch much more than three segments/day. Imagine, if iNEXTV had many segments of Sports Illustrated SwimSuit models, I don't think many men would limit themselves to viewing only three segments/day. While it cannot possibly be uniformly true across all viewing segments, its similar to having pulses of high interest and viewership on some content and fewer viewers on others. If one takes an average of the overall viewers, then you will begin to understand this approach, i.e.average viewed segments = 3segments/day. (I stand by that estimate until convinced otherwise by some reasoned arguments to the contrary.) One other thing, you should not think that your preferences are held by everyone else. What you might consider as poor content, might well be applauded by many others as very good and very interesting,(swimsuit models vs automobiles). Try to be more objective with your "analysis", and perhaps this will become a more useful exercise. Will address more later. DrD Comments Welcome

To: Michael Olds who wrote (3324)	3/31/2001 11:46:41 PM
From: Trenton A. Scott	Read Replies (1) \| Respond to of 4169

Using your numbers (5% population usage, 50/50 split on broad/narrowband segmentation, etc.) my cost model produces the following: Stream Cost (per GB): $15.00 Daily Stream Load (seconds): 144,000,000 (800,000 views * 3 minutes * 60) Daily Broadband Cost: $168,750 Daily Narrowband Cost: $59,063 Daily Distribution Cost: $227,813 Even though the number of streams drops in this scenario, the increase in broadband usage to 50% really hurts, bringing the revenue-per-stream requirement up to 28 cents just to break even! Nasty. This lower usage scenario still requires almost $5 million each quarter to cover distribution costs; these numbers are so bad, I'm thinking iNEXTV must be getting some kind of volume discount/break from Akamai; otherwise, Bramson would have folded tents already! A 50% drop in streaming costs to $7.50/GB would help things a lot, dropping the revenue-per-stream requirement to 14 cents. Ouch.