The Tube (fka TUBM)

[DoDahMan]

How might they get some revenues? It has recently been added hereto my cable provider, Insight Communications and I love it! I see no commercials from what I remember.

I see this as a buyout by a larger media group, however I haven't done much DD except I did discover they added Paul McTear the CEO of Raycom to their BOD: http://www.raycommedia.com/officers/ This guy is a bigwig and must see potential or he wouldn't was his time on the BOD

http://www.sec.gov/Archives/edgar/data/1168932/000114420406042174/v054830_8ka.htm

I am sure most of you have read this from their last 10Q, but I haven't yet and others haven't either perhaps...
http://www.sec.gov/Archives/edgar/data/1168932/000114420406033404/v050057_10qsb.htm

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Overview

......The Tube Music Network is a 24-hour music network featuring the greatest artists of all time, irrespective of genre or era. The Company anticipates that The Tube Music Network will reach penetration of approximately 23 million homes by the end of 2006. The Tube is the only all-music network on television and will not air any game shows, awards shows, reality shows or news shows.

In addition to anticipated revenue generated from national and local advertising, we expect to generate revenue via a direct commerce component that will enable The Tube audience to purchase the music they see and hear immediately by telephone or online. We also expect that The Tube will earn revenue through sales of music related merchandise on The Tube’s website.

The Tube is currently delivering programming to the majority of the top Designated Market Areas following its national launch in the second quarter of 2006 and can currently be seen in digital households throughout of the United States. The Company anticipates increases in household penetration will continue steadily through third quarter of 2006, supported by a national media campaign utilizing marketing, promotions and public relations to reach every relevant audience for the network. The campaign is designed to heighten awareness of the network, stimulate demand for it across the country and cultivate its image as the only network that delivers quality music and entertainment content.

Legislation recently passed by the Senate requires broadcasters to end their traditional analog transmissions by February 17, 2009 and send their signals digitally. The transition from analog to digital transmission creates extra bandwidth that enables one station to broadcast up to five separate channels or a few high-definition channels via a new technology referred to as multicasting. Approximately 80% of U.S. stations have already upgraded to digital transmission enabling them to broadcast additional channels that offer local news, sports, weather or other specialty services like The Tube. Consumers in these markets are able to receive multicast programming free, over-the-air on television sets that are enabled with digital tuners.

20


Current distribution was achieved through agreements with three major station groups. In April of 2005, The Tube Music Network signed an agreement with Raycom Media, Inc. and in March 2006, The Tube entered into charter affiliation agreements with Tribune Broadcasting Company and Sinclair Television Group. The combined agreements will put The Tube Music Network in 8 of the top 10 and approximately 70 of the top 100 market areas in the United States by the end of 2006.

The Company believes that it will be able to generate advertising and e-commerce revenue from The Tube Music Network, however, its revenue model is new and evolving, and it cannot be certain that it will be successful. The potential profitability of The Tube’s business model is unproven and there can be no assurance that it can achieve profitable operations. The Company’s ability to generate revenues depends, among other things, on its ability to sustain advertising and e-commerce revenues.

AGU Music was formed to produce both studio albums and DVD concerts. It entered into several agreements for distribution and released three albums to the public in 2004. Our ability to produce new albums and DVD concerts in 2006 will be dependent on the amount of working capital available to us (see “Liquidity and Capital Resources”) for the required marketing, promotional and other operating expenses necessary to produce recorded music projects. We did not produce any new albums and DVD concerts in 2005 due to the limited availability of working capital.
-->end

I will be keeping this on my radar and will be checking back here on occasion. Looking forward to posts by those a little more familiar with TUBM.

Peace and profits,

DooDah