NanoTech Entertainment Inc (NTEK)

[Nikodemos]

That is an EXCELLENT question that I have been researching, making
calls, trying to verify info & squeeze some hint of direction from;
but sadly without any definitive success.


I can say the following:

1) The cable industry is losing market share.
OTT boxes, cord-cutting, & a la cart streaming, devices &
mobile viewing are taking their toll (slowly but surely!).

2) The industry came through a GLOBAL RECESSION. Notably a time
when folks tend to stay home, nest, & cheaper entertainment
options like cable have historically outperformed: But,
NOT THIS TIME, & not of late....see #1.

3) The internet ad/monetization model is firmly in place.
Evidenced by all the swirling ads here on iHub for example, there
is HUGE MONEY in advertising, data-mining, information in
general & the FIGHT for the LIVING ROOM (as an extension of
all this) is on. The stakes are HIGH.

4) This "FIGHT" & this Internet & TV convergence-trend
(which Alan Stone pointed to in his Inside NanoTech Interview
over a year ago) is further complicated by 4K now; the
emergence of Tech, Smart homes, etc., such that (in MY
analysis, research & DD) it has become INCREASINGLY clear
that this market is EXTREMELY LUCRATIVE & imv will require
TECH expertise to dominate going-forward.

The OLD-dead TV-model is a thing of the past...but before I
get side-tracked, just NOTE: Convergence, internet, internet-
streaming, personalized ads (per gender, age, marital status,
sexual preferences, lifestyle, viewing habits, etc will all
factor into algorithms of info delivered, by whom, when, &
the like), data-mining & all this will be laid over the OLD
TV & Cable Model. Cable MUST adapt - as they have the MOST to
lose in this new world order.

So, with that info in mind & to DIRECTLY address your
question: IT WOULD SEEM TO ME that this 4K Streaming Box
is a way for Cable to LEAP-FROG Roku, Apple, & others into
relevancy & HUGE NEW money-making opportunities (monitoring
viewing habits, apps used, music streamed, your name, gender,
location, lifestyle choices, etc.. that the internet aspect
affords WHEN APPLIED to the TV/Living room space).

Cable companies can:
1) Still charge for the box
2) Use the box to stream EVERYTHING up to & INCLUDING 4K.
3) Charge a PREMIUM for 4K
4) Benefit from the PERCEIVED NEED for higher streaming
rates (if they want to; but with NTEK they don't HAVE TO).
5) Quickly retain the upper hand & maintain relevancy with
a device like the one NanoTech has built.
6) Add revenue opportunities from the myriad of things that
the box/internet affords (Gaming, Social, Commerce, etc.)

Especially since NTEK streams everything up to & INCLUDING 4K
@ efficient data-cap (read: ongoing MONEY-SAVING) streaming rates.


So, to your question: I do NOT know if Orange Telecom (with their
~230mm subscribers will adopt or even trial the Nuvola NP-1 units
w customers), I just see that it makes GREAT SENSE for the U.S.
cable model (from what my research tells me) to adopt the Nuvola.
I do NOT know many details yet about the Euro/Orange cable model, customer viewing habits, cultural proclivities, etc., just yet.


But I do KNOW that the U.S. market is ONLY next to the U.K. (an
Orange Tel market btw) in hrs of TV/Video viewing; & that streaming
is sharply on the rise in most developed countries that have
"mature" or "maturing" market-penetration status for handheld-devices: A good measuring stick for the adoption-ability of
4K Streaming imv.




IF Orange were to outfit just a small percentage of their OWN
customers with these NEW Over-The-Top (OTT or, as they are also
called, Over-The-Set Top) Boxes -- say 1/2 of 1%, that would yield
record revenues for NTEK.


The simple math:

230mm Orange customers
1% = 2.3 MILLION users
1/2 of that 1% then = 1.65 million users

So, NTEKs Nuvola Retails for ~$300.00
A reasonable wholesale price might be $160.-
(note the electronics market has typically delivered 15-30% margins
to retail, so I think a $160. wholesale number is VERY REASONABLE)

Let's say $150.-

$150.- x 1.65mm units = $247,500,000.00

Two hundred & forty-seven MILLION DOLLARS for 1/2 of 1% of
Orange's 230mm Customers & at a cost of ONE DAY of Orange Telecom's weekly revenues.


NTEK put forth a 2014 Forecast Projecting Revenues of $33mm this year.

Now, the question is can Orange pay it? Well, ORANGE earns over
$1BILLION dollars per WEEK...the $247.5mm invoice from NTEK is about
what they earn on a normal WEEKDAY!!! If they charge their 4K TV
subscribers $6.25/mo for the UPGRADED Cable Box capable of streaming
EVERYTHING UP TO & INCLUDING 4K, with Gaming, Social Features,
Internet Streaming, voice commands menus & search features,
Skype, FB, Twitter, Mirarcasting, & 4K streaming to secondary
devices, etc. they'll earn their money back with a 2yr contract.


While the current internet model which allows Orange for them to
make additional revenues from internet commerce, monitoring
viewing habits, upselling 4K content, films, ppv events, concerts,
advertising, gaming, music, & on & on it goes....



Despite all my research however, I must admit that I am no closer
to cracking the question of IF Orange would adopt the box. It makes
HUGE sense to me...in a myriad of ways I hope I've illuminated.


But let's look for a second at ANOTHER NTEK product: UltraFlix.
That "app" could likely be in 1mm units by the 1st quarter of
2015 if the current pace of 4K TV sales continues as expected.
And considering ~20mm are expected in global 2014 sales 1mm is
AGAIN - a reasonable figure. Well, NTEK has said they expect to
charge ~$5/mo for the subscription which has 3 tiers:

1) Freemium (ad supported - no charge)
2) Subscription (no ads @ ~$5/mo)
3) Premium/PPV/VOD Current 4K movies, titles, etc. with
prices ranging from $2 to ~$20 buy/rental per film.

[In case you're wondering, my DD shows Sony currently charges
$30.00 for a 4K Film BUY & $8.- for a rental)


IF NTEK, through ALL these REVENUE streams ON THIS ONE UltraFlix
product averages $5.-/mo per unit then that would be $5mm per month,
or $60mm for the year!! Again, on this ONE PRODUCT. Which, although
NTEK is hard at work via "4K Studios" signing exclusive content,
remastering, digitizing content & the like essentially becomes
PASSIVE INCOME after that work is completed. (Forgetting for a min
that NTEK gets PAID for that work as well & it represents a
revenue stream in & of itself).


Anyway, I LOOK critically at the well-conceived & MULTI-pronged
4K Strategy that NanoTech has been executing: 4K Streaming Media
Players (Six Models NOW), "4K Studios", &/or UltraFlix (& we have
not even LOOKED at Digital Signage & Commercial uses for 4K
Streaming with ProFlix, Gaming Labs, Glasses-Free 3D, etc.) I see
VERY BIG UPSIDE revenue opportunities for this business & the
NanoTech product line(s).


And that is why I am here!! I continue to do my DD & see if I can
REALLY get a handle on how large this 4K/Internet/Streaming/Cable/
Gaming/UltraFlix/ProFlix/Digital Signage/Advertising/"4K Studios"/
Mitch Lowe/Alan Stone/Blake Brown/"LX" Rudis/Aaron Taylor/etc
business can really generate...


The numbers I provided with just 1/2 of 1% of current Orange
customers ALONE are STAGGERING @ $247,500,000.00 & that is
conservative, reasonable & REAL!! Albeit just one company,
one product & admittedly a tiny fraction of the ENTIRE
market for The World's FIRST-EVER 4K Streaming Media Players....






NanoTech Rolls Out Android™ KitKat® for the
Nuvola 4K Ultra HD Streaming Media Player
http://tinyurl.com/l526f4t

At least one of the devices will be powered by an Nvidia Tegra 4
processor, suggesting strong ties to the video game industry.

http://www.cnet.com/news/third-times-a-charm-google-plans-another-try-with-the-tv/










The WORLD'S FIRST-EVER mass-retail UltraHD 4K Streaming Media Player!!

BUY IT HERE NOW: http://store.nanotechent.com/











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