~~ Angel Hill Corporation ~~

[AngelHillCorp]

RLTR ~ Trader Daily Review .....

Brilliant Bear Market Investments #2

http://www.traderdaily.com/column/2/14430.html

In the middle of a declining market, growth is abundant, in fact, it could become a movie.

When In the midst of a broader market decline, savvy investors still profit hand over fist. However, when the major indices are falling through the floor, they sometimes have to look outside the normal Wall Street box, to find growth stocks poised to move. Earlier this week, I wrote about UNOR Inc., a micro cap uranium exploration company. Now, in part two, I bring you an American company, poised to take the online movie business by storm.

Fact is, online video is taking over; companies like Blockbuster know this well, as seen in recent closures of many of the company’s retail outlets. And while several new entities are trying to cut in, not many are really positioned to do so. One Seattle company, however, could have a hand full of aces…

Reeltime.com (PK: RLTR) just announced a massive deal with Sony, and the company could now even have its sights set on Blockbuster and Netflix. The CEO, Barry Henthorn, kindly took time to answer a few of my questions.

Barry, thanks so much for your time for this interview. Reeltime.com is a micro cap, pink sheet stock, something I don’t usually cover; however, as of your press release on Wednesday, it looks like you’re now playing in the big leagues with Sony. Before we get into the Sony deal, can you please tell me us a little about your company and why you’re a competitor in the online movie business?

Reeltime.com is a provider of high-quality streaming movie and television content over the internet. We quite literally give content consumers the ability to “point, click, and watch” DVD-quality movies or TV content instantly via broadband Internet connection, on any size screen or television, without delays or buffering.

The reasons we are emerging as a formidable competitor in the online content distribution industry are simple: we are better, faster and cheaper than the competition. Utilizing our proprietary technology, Reeltime.com delivers the finest online viewing experience, faster than anyone else, with the lowest delivery cost in the industry and the highest level of anti-piracy content security available.

Why did you go after Sony, and are you talking to other major movie houses?

Sony was, without a doubt, our first choice among the major studios not only because they’re one of the largest content aggregators in the world, but because they’re ahead of the curve in appreciating the importance of, and adapting to, new digital distribution technologies. We are currently in talks with all the major studios.

With Sony under your belt now, where does this put you in your long-term strategy, and what do you see in the future?

Giving viewers a wide selection of choices, including a full range of top-tier programming, is one of the key success drivers in content delivery no matter what the platform. The impact of our content deal with Sony is massive. It instantly validates our business model, our technology, our security and reliability to the mainstream Hollywood community (a/k/a other major studios) and proves that we are ready for ‘prime time’. Now that we have completed our deal with Sony, we see a domino effect taking place: more major studios being added to our roster and dramatically more viewers. Going back to the tech side…There’s a rumor in the market that your technology completely overcomes the normal streaming model by using a peer-to-peer model (please correct me if I’m using the wrong technical lingo) and allows for less burden on company servers, while increasing efficiency through end-point CPU capacity, all the while providing a sharper picture at the same time. Can you fill me in on the details?

Sounds like you nailed it. Although it is true that our grid-based distributive network utilizes bandwidth and CPU power across the network as in a peer-to-peer or file-share architecture, it is truly an evolution beyond traditional p2p such that it has full streaming capabilities. We utilize much smaller file sizes, and that efficiency allows the high-quality streaming viewer experience, significantly reduced cost of delivery, and a clear competitive advantage.

In complete contrast to server-based infrastructures used by our competitors, our most popular title is the least expensive to support. Other platforms require massive infrastructure systems in key geographic locations as well as huge bandwidth costs. These traditional models’ most popular titles are their most expensive. Reeltime.com’s delivery platform is only limited by the availability of broadband internet access and recent generation computing capabilities, giving us a true global footprint right out of gate.

Traditional server based systems are limited by their geographic proximity. Therefore, large datacenters are required in all major regions where viewing is desired.

Have Blockbuster or Netflix approached Reeltime.com for a potential merger, or buyout? If they have, or if you’ve approached either of the aforementioned, can you give us some insight as to the status of any potential deals and/or anything investors might expect in the pipeline.

Unfortunately, I cannot make any comment on the existence of M&A discussions or egotiations currently being had by management.

Many major players in the video rental space are aware of the need to reduce their cost of delivery while increasing the user experience to remain competitive. To that end, we have had a number of inquiries as to how our platform may allow them to do this. Both NetFlix and Blockbuster have announced initiatives into digital delivery of content, recognizing it as the future.

Reeltime.com showcase’s ReelTime’s Intelligent Rapid Delivery System (IRDS) end-to-end delivery platform that allows not only for users to have a high-quality experience but also provides other potential content-delivery portals an opportunity to observe our technology in action. Through potential working relationships and or partnerships we could effectively turn our competitors into our customers, providing the consumer even greater choices through these relationships.

I completely understand that there are some items you can’t talk about; thanks for the information you were able to provide. With that in mind, there’s also another concept swirling around your company…potential outsourcing to movie houses, International clients, and/or the two largest online content producers we’ve already talked about. Much like tech companies outsource to call centers, what I’m asking is, could Reeltime.com be the first generation new millennium video mega-outsourcing company on a global scale? And if so, are you creating a whole new business frontier?

Clearly, white labeling our product to other providers could be a lucrative opportunity.

CDN’s (content delivery network), exist today that allow companies such as network tv stations, Amazon, Youtube, etc., to deliver video in a traditional manner. The dollars spent with those CDN’s continues to increase, whereas I do not see the business frontier as entirely new, I do envision a dramatic disruption of it in its current form due to the advantages of our viewing experience and cost of delivery.

What the total potential market?

A recent report of video rentals, which appeared in Jan 21 2008 in Video Business Magazine stated that overall consumers spent $22.9 BILLION on home entertainment rentals and purchases in the US alone. We believe that digital delivery has the greatest potential for growth of any segment of that market.

Our type of delivery is not limited by geography, only by the availability of broadband. Technically, we have a larger potential reach of viewer-ship than any other single broadcast network.

Does the Sony deal have any impact on the outsourcing business model?

Yes, it virtually eliminates any previous skepticism as to the viability of our platform.

Just out of curiosity, a few boards mention that there is an OTCBB listing on the way, is this true?

We are currently taking the steps to allow us to migrate trading venues.

I have to ask though, given that many press outlets won’t cover micro and small cap companies not listed on a major exchange, why wouldn’t you just pull through for an AMEX listing? Wouldn’t it open up even more possibilities for media coverage, as well as potential future stockholder value?

It has certainly been a topic of discussion. Once we complete the process we’re currently undergoing we will be in a position to evaluate which senior exchange is most appropriate.

Thanks for all of your time Barry, can you give us any more insights into your company that I might have missed, or anything you think potential shareholders should know?

I’d like to invite all of your readers to experience ReelTime for themselves. The enclosed link, http://www.reeltime.com/reelcash will allow your readers to receive $15 ReelCash to spend enjoying the ReelTime experience. It can be used not only a for an unlimited monthly subscription but also for PPV premium titles such as recently released Superbad, Spiderman 3, and Surfs Up, as well as any of our other premium content. Again simply click on the link and create a password. All we ask is that you provide us a valid email address. We’re not asking for a credit card or any personal information, just the email address and that you enjoy and tell all your friends.

DISCLOSURE: Mark Whistler does not own the aforementioned stock.

Mark Whistler

1/25/08