News Details – Smallcapnetwork
Viva Entertainment (OTTV) Talks Numbers - This Thing is Even Bigger Than We Thought
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February 2, 2024

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PDT

Have you ever noticed how some publicly-traded companies will talk vaguely about their product or service until the sun goes down, but they'll become strangely quiet when it's time to talk details? To be fair, sometimes certain aspects of a company's technology or product are proprietary. A lot of times though, you just get the feeling an organization doesn't talk specifics because they're not able to - they don't know the specifics. Yeah, well, Viva Entertainment (OTTV) has served up a huge breath of fresh air by moving to the extreme other end of that spectrum. This morning it pulled back all the curtains to unveil some very specific numeric details about its business model. Not only was it a highly-inclusive move, the numbers these guys are talking about far exceed what I would have expected. This is a multi-million opportunity, SOON! Just as a quick refresher, Viva Entertainment is the company we introduced to you back on August 4th, explaining it had created a software/platform allowing anyone to get into the over-the-top television business like Netflix and Hulu already are. Telecom service providers, media websites, universities, and pretty much anyone else can custom-build their own IPTV service, and collect subscription fees and/or ad revenue for doing so. At the time we unveiled OTTV to you, it had just landed such a deal with Oi2 Media... a Latino media group. It was going to be delivering a variety of Latino movies and shows as well as music to this segment of the market, giving them a focused offering they can't get anywhere else. It was just one of many such possibilities available with Viva platform though. The company had mentioned colleges and hotel chains also make for natural groupings of customers that are a viable customer base. What we didn't know at the time was the revenue potential of providing this kind of framework to any group with an existing customer base. We guessed there would be monthly royalties payable to Viva, but we didn't know how much, or how many customers were on the table. Now we know both. My guess is that it's a negotiable figure, but in today's press release CEO Johnny Falcones company flat-out said "The main focus of the Company's distribution efforts is in licensing, where the Licensor will Pay a fee upfront based on how many subscribers they have or a subscriber projection. It also includes a monthly royalty per subscriber anywhere from $3-4 dollars recurring. In the case of a larger cable company that has 20 million subscribers paying Viva $3 dollars a month in royalties could add up to $60 million dollars a month in revenue from a single customer..." Folks, $3 to $4 per user per month is huge. That's on par with what Facebook generates per its average U.S. user. I'll confess I wasn't entirely sure I could believe the projected royalty numbers. After all, Netflix costs about $10 per month right now. It's tough to see any organization giving up such a big piece of its revenue just to lease the technical architecture that makes its OTTV service possible. Then I realized, the Viva Entertainment Platform is so much more than Netflix or Hulu, and correspondingly commands a higher price than Hulu or Netflix. The Viva platform can pipe in shows, movies, live broadcasts, on-demand stuff, music stations, and more, and the organizations selling the service can also collect advertising revenue. We really should be comparing it to cable television, which could command payments as much as $40 per month per user depending on the package (another number Falcones wasn't afraid to put out there in the press release, which is below). The funny thing is, the chat about the specific numbers -- the dollar amounts -- wasn't even the crux of this morning's press release. The highlight of this morning's news was to let investors know Viva Entertainment is in talks with hotel chains to use Viva as their in-room television service. It's a real win-win too; Viva said it was looking to split any ad revenue 50/50 with the hotel, as well as split an on-demand video revenue 50/50. Now with Viva's platform in guests' rooms, television becomes a new revenue service for the hotel operator.. and it can still be totally customized to the meet the local or regional needs of each locale. Of course, that also becomes a revenue stream for Viva. I suppose what's really compelling about the story is that Viva doesn't have some pie-in-the-sky expectations.... and yet the revenue outlook is compelling anyway. We didn't detail it at the time because it was a detail that didn't matter, but part of the deal with Oi2 Media is that the IPTV service is going to be marketed through the 2000 radio stations across the nation that are already part of the Oi2 network. Viva Entertainment is only planning on the addition of two new subscribers per day per station. Yet, even with that minimal enrollment figure, Viva could have well over a million subscribers to that one service in less than a year. That's more than $3 million in revenue per month, yet doesn't even begin to scratch the surface of what could be waiting for patient OTTV shareholders. Just for some perspective, Netflix has 25 million subscribers in the U.S. alone. There are at least 86 million cable-television subscriptions nationwide. Satellite-radio service Sirius XM boasts 30 million users. There are 4.8 million hotel/motel rooms in the United States. All of them are revenue opportunities for Viva, and none of those subscribers (or hotel owners) have a targeted (or revenue-generating) choice like the one Viva Entertainment can offer. Nobody sees this coming, nor do they see how big it could be. That doesn't mean it's not coming though. At least put OTTV on your watchlist if you don't have it in your portfolio yet, because others should start seeing it soon. Here's the press release. VIVA Entertainment Group Discusses Marketing and Distribution Plans and Entry Into MultiBillion Dollar Hospitality Infotainment Market ORLANDO, Florida, August 24, 2016 /PRNewswire/ -- Viva Entertainment Group, Inc (OTC MARKETS: OTTV), a global entertainment and technology company connecting content owners and video distributors to deliver premium content on any smart device, is pleased to announce it is expanding its platform reach to include the very large multibillion dollar hospitality infotainment market and is currently in negotiations, with multiple hotel groups that represent thousands of hotel rooms, to rollout the Viva OTTV service. Johnny Falcones, Viva Founder and CEO stated "the opportunity for Viva to rollout our OTTV service to the hotel-hospitality market represents a very large and untapped market. Currently, the hotel industry provides guests with hundreds of in-room video-on-demand movie choices but generally the hotels don't share in the revenues generated when customers spend money on this form of entertainment. Viva's value proposition is that it has built its own proprietary OTTV platform, where it can customize a much more unique and compelling in-room infotainment system for the hotel industry and offer hotel chains and/or hotel groups a revenue sharing, which provides the hotelier new revenue opportunities to increase the average revenue per room or per customer. The revenue model looks like this: Advertising is a 50/50 split with Viva on Local, Regional, National or Global Ads, Video On Demand $9.99 per movie is a 50/50 split, with a demographic package the hotel guest may pick. As an example, a Miami hotel chain that has 80% of guests coming from South American and Latin American regions will be able to offer their foreign travelers the Viva OTTV service in-room where guests will be able to pick a package on their native language either from Live Streaming or On Demand." Mr. Falcones added, "The main focus of the Company's distribution efforts is in licensing, where the Licensor will Pay a fee upfront based on how many subscribers they have or a subscriber projection. It also includes a monthly royalty per subscriber anywhere from $3-4 dollars recurring. In the case of a larger cable company that has 20 million subscribers paying Viva $3 dollars a month in royalties could add up to $60 million dollars a month in revenue from a single customer. Viva is in discussions with multiple organizations including cable companies that have expressed interest in white label licensing agreements for the rollout of the Company's OTTV service. As previously announced, the Company has partnered with Oi2 Media. Oi2, the country's largest provider of Latino focused content and services to major broadcast and digital media companies such as iHeart Media and Univision Radio is jointly working with Viva to roll out a brand new OTTV service to their subscriber base. Users will have access to over 1000 live streaming TV, 2000 radio stations and over 7,500 videos on demand. Joint marketing efforts will come from commercials advertising the availability of the product on all the 2000 radio stations at the joint venture's disposal. The joint venture is targeting to generate a minimum of 2 subscribers a day paying anywhere from $9.99-39.99 times 2000 radio stations which equals 120,000 subscribers a month. VIVA and Oi2 Media's combination exceeds a monthly reach of 4.5 billion people, 121.7M monthly socially media engaged users, 100 million social media followers, 33.5 million social media referrals and over 300 thousand e-mail subscribers to begin with." About VIVA Entertainment Group, Inc. VIVA Entertainment Group, Inc. is a global entertainment and technology company connecting content owners and video distributors to deliver premium content on any smart device, and any television. Viva has developed an OTT system through which television services are delivered using the Internet protocol suite over a network such as the Internet, instead of being delivered through traditional terrestrial, satellite signal and cable television formats. Viva, your entertainment partner, provides subscribers access to the content they want anywhere, anytime. With a WiFi connection our customers can watch Live TV from around the world, TV shows, as well as movies on demand, Tele-video conference and many other interactive features. Independent and Major film studios, television networks, Telecoms, Cable Companies, and emerging ISPS partner with Viva for enhanced capabilities in multi platform video distribution. The only true end-to-end provider of premium content technology services, VIVA looks to license and deliver to traditional and OTT video distributors across the world. VIVA is a publicly traded company under the stock symbol OTTV. Viva Entertainment's web site can be found at http://www.vivagroup.tv About Oi2 Media Corp Oi2 Media Corp (http://www.Oi2networks.com) is a leading global provider of millennial and multicultural focused audio and video content programming services. Oi2's current footprint spans throughout the digital space and across a territorial broadcast and digital media presence in 33 countries via a network 1,700+ radio station affiliations and digital distribution on mobile and satellite media platforms including iHeartRadio, TuneIn, SiriusXM Satellite Radio, and more. As a premium provider of content, Oi2 operates a slate of 24x7 audio streams with a diverse menu of music, news, sports, and entertainment genres. Plus over 100+ daily marquee branded content features, talk and specialty shows. Some of the Oi2 menu of brands include CNN en Espanol; FOX Deportes; AP News en Espanol; ESPN Deportes. For more information visit our websites: http://www.Oi2networks.com. Safe Harbor Statement: The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. Johnny Falcones, Chairman & CEO, jf@v-e-s.net Follow VIVA on Twitter: https://twitter.com/vivaentgroup Like us on Facebook: https://www.facebook.com/Vivaentertainmentgroup/ SOURCE VIVA Entertainment Group Inc