I think the business model is spot on. It's like they're creating the television stations (the broadcast channels) and the televisions (the cable subscription service), getting revenue from both sides. And then they tap into the ad revenue to be split with the broadcaster when ads are run on those channels.
The reason I like posting videos on YouTube is that not only does it give me a conduit for getting my message out, but I have much greater incentive because I know that if a lot of people watch the videos, I'll share in the ad revenue from YouTube.
In our case, it should make the sales process that much easier for OTTV when approaching hotels/motels, universities, cities, etc., showing them how simple it is to create a broadcast channel while also giving them a strong financial incentive to make a lot of advertising revenue as well, if a lot of people watch their channel.
If a university had their own channel, no doubt they should be able to attract advertisers on that channel who wanted to reach the students. Same with motels/hotels who might get local restaurants and/or tourist locations to advertise on their channel.
I've always wanted my own specialty television channel as well and this looks to be the first simplified approach that I've seen for creating one.
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