here you go............make sure to thank bugzie and koreanvet for their hardwork on this
GANG: Had a very pleasant meeting with Frank. First, no pictures that is the labor policy. Had a pleasant chat with Frank then told him about the purpose of my visit. I gave him the question letter and total share sheet. Frank read everything then called in a young lady to take a letter. Frank told me to post the answer to the questions just like they were taken down by the young lady. If I changed any of the answers are made any extra comments I would be sued bye the Q.I have a copy of Franks answers. All is signed and noted about making any changes.
Question #1 - Given the recent developments with LOGO and OUTTV, it would appear that carriers are ready to offer gay programming. What is the major obstacle delaying QTN from getting new carriers?
ANSWER = 90% of the industry is owned and operated by themselves. For example, Viacom owns cable companies such as Nick at Night, TV Land etc. They also own the carriers. By them owning the carriers ,it is like a clubhouse-if you check all the channels, there are only a few that don’t own themselves, they own each other. It is like a "Big Daddy" club. In 1936 all the movie producers owned the theaters. After the Taft Hartley law, you could either own the theater or own the production house. You couldn’t do both. Basically, it is a vicious loop that is hard to get into. When LOGO came out and decided to do a gay channel, I was surprised. We are being looked at differently by the networks. LOGO got in because they traded off VH2, which was a classic country rock station. They made a deal with the cable companies to take the VH2 away and replace it with LOGO.
Question #2 - If Q is indeed in negotiations with carriers, do you know if there has been any serious backlash as a result of the LOGO deal?
ANSWER = No, there is no backlash yet. Video on demand is very expensive to record and have available to people. Right now, we have 30 hours available. It is available 24 hours a day,7 days a week, but it is the same 30 hours.
Question #3 - Is there a contingency plan, should carrier coverage no longer be an option? Could Q become a production company in the event that you are unable to tie up any major carrier?
ANSWER = You need to understand that cable companies are municipalities. If you separate them, they become very poor. The reason is because the average merger is $4000.00 per channel, it involves so much. Such as FBOD, SVOD and other programming. A VOD does not fit our method because we are a 24/7 live programming company.
Question #4 - Can you disclose subscriber numbers for RCN? This would be helpful as a reference for future potential?
ANSWER = Our contract with RCN does not allow us to release subscribers’ numbers because they are such a small company. (Only 1 million households) The numbers don’t mean anything really-we have actually exceeded our projected number. Last month, for example, we were up 285%!!
Question #5 - Why has RCN not given Q coverage in additional cities, and when can we expect that to change? We believe that alone would reverse the current downward pps trend.
ANSWER = RCN is working with us to get bandwidth. They keep their bandwidth full all the time and in order to add someone, they have to drop someone. They have to check and make sure that the other channels are not under a contract with them first.
Question #6 - is the status of the 2006 Chicago Gay Games contract if Q is not available in 150 markets?
ANSWER = We will be available-its in our contract
Question #7 - What is the status of the negotiations with OutTV?
ANSWER = OutTV just finished their licensing agreement on July5 and we are still negotiating with them.
Question #8 - When will the audit be complete, and what is the anticipated timing for moving to a new trading board?
ANSWER = The information that I need to share with you is too long and detailed for this letter, so I will explain this next week.
Question #9 - What happened to the 150 cities that we were supposed to be broadcasting to on June 1?
ANSWER = That was announced today.
Question #10 - What happened to the private investor group that would buy up to .01? Getting even close to .01 would go a long way toward instilling investor confidence.
ANSWER = SAME AS #8 SEE #8
Question #11 - Can you clarify the relationship between QTN and Triangle Multi-media? We understand that it is a subsidiary, but we would like to see a statement confirming that QBID shareholders will realize a direct benefit from any QTN success; and that there is no intent to separate the two in a manner that would be detrimental to QBID shareholders.
ANSWER = The difference between a subsidiary and actual ownership is that QTN has debt-and debt has to be considered.
Question #12 - When will the website be updated with the latest information on:
a-) The audit
b-) Carriers
c-) Infomercials
d-) Other unfulfilled press release issues
ANSWER = The website is updated on a daily basis
Question #13 - What is the current status of some of the “hired” help from the outside, like Barb LaMont, Mr. Markowisky, and others?
a-) Are they still currently on the payroll?
b-) Was their participation helpful?
c-) Do they still have an affiliation with Q?
ANSWER = We have grown up a lot in the past year. Some of the consulting companies we used previously do not meet our criteria any longer. Barb LaMont has been replaced by Firestone Communications; New Orleans PR has been replaced by CW Partners and Ruben Stein; sales department was replaced by Joe Schramm & Associates; affiliate relations has been replaced by Cathy Rosenberger’s group, Carol Hinnant, Cory Sher, and others. On average our payroll per person or qualified person, has gone from $30,000 per year to $150,000 per year. The experience level per person or qualified person, has gone from 1-2 years of experience to 20-40 years of experience. Basically, we are raising the level of quality, production and employees.
Frank told to young lady to make a copy of the answers and bring them to him so sign and to make sure no words would be changed. This is how Frank answered each question from the sheet. He was very nice and was happy to answer the questions on the sheet.
Will post this and call it a day for now
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