A request for help – To the Gaming Industry Jul. 2007
This was written to a government fund manager in the gaming sector.
The request concerned leveraging a console to get onto the television. Unfortunately, even this, most senior of all gaming industry people – australia wide – could not obtain any interest in a system that connected TV with a console.
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I’ve been working on the development of a standards based platform for interactive Free To Air TV. Then I want to make Interactive Content. Stories, with multiple paths, or advertising directories, for small businesses…
I’ve self funded 5 months development works towards a collaborative development project between the UK, EU and AU. Things have been going well, but I’ve run out of cash, and need an investor to get over the next few hurdles.
Regarding the application of these ideas towards gaming, one of my many suggestions / ideas, would be to enable social networking / social media to be interfaced with FTA. Providing the ability to produce new content from segments of on-network and broadcast content.
Perhaps ensure all content segments are less than 30 seconds or 15 seconds…
Other ideas would include
- the production of content from home movies / photo’s, and the ability to upload to websites.
- The ability to view Niche Channels
- The Ability to Produce Content / Channels
- The Ability to contribute to Channels
- The Ability to distribute game stats / videos / etc.
- The ability to advertise things for sale
- The ability to access key web-sites (YouTube, etc.)
- Other capabilities pertaining to the distribution of free to use content (excluding Broadband costs and any costs associated to the connectivity – ie: xbox live, etc.)
Overview of the iTV Project – Media Guide Networks
The Project aims to produce the software platform required for the distribution of Interactive Media To (branded) Consumer Electronics. The platform business, produces and sells the software nationally, and internationally via Franchise / distribution agreements. The platform generates revenues via the sale of channels (low cost in comparison to Foxtel, etc.) the distribution of content (pay per minute of SD or HD).
I’ve had initial conversations with parties connected to the TV-Anytime Specification, that lead me to believe if the platform is made available to them on a cost effective basis, they will take it up on an international basis, as a means to standardise Interactive TV for Free To Air Services.
The Platform forms the basis of IPTV Licenses, and ensures content is “family friendly” etc. The Project also provides the means to standardise the format of an interactive TV Content Package. There are many potential patents.
Over the past 5 months, I’ve established the top-level specifications, sourced interest from the UK, Denmark and Australia (Distribution) sourced potential partners / industry people who are principally interested in signing up on LOI’s / MOU’s for Distribution, etc. Operationally, I’ve set-up relations as required throughout the Educational, government, Commercial, Technical, advertising, industry bodies and other related industrial drivers to help push the commercialisation curve if / as required upon successful acquisition of growth milestones.
Government funding has been researched, and the project initially seems to be aligned well with the requirements, for accessing the funds. I have also acquired quotes for the external business planning / validation process, which includes formulation for government funding (COMET, START, etc.), at an upfront cost of 15k, and total cost of 30k.
At this stage, I have projected a cost of 150k Cash for the development of a prototype, and the formulation of the business, so that it incorporates all the legal, partnership, membership requirements as well as the commercialisation framework required for build and commercialisation
The Technology platform is based on Standards, Primarily TV-Anytime. The Project aims to produce a platform (and a platform operations business) for Free Interactive TV. Pay for use services can be leveraged through the platform, however is likely to require ISP Billing integration. Revenue forecasts for Free iTV Only Services suggest revenues exceeding $30 PCM, Per STU. If Paid TV Services are also included the total revenue goes up, but the margin is diluted, through licensing and billing management processes.
The End-Game for the technology specification is to provide the means to deliver non-linear TV programming. I have attached part of the specifications integrated business model documents, to provide you a window into the potential…
Regarding the Commercialisation – there are multiple opportunities.
- The Production of a Console game / title, in a similar manifestation to singstar, but designed to leverage for iTV, through distribution of the title with a DVB-T Connector.
- This would fund the development of the specification, that can then be repackaged for repurposing to STB’s.
Let me know of your thoughts.
Timothy Holborn
The ITV Company
How to fund the iTV Company fta project?
I wrote to so many people to attempt to get some help with this project. Unforatunately, nothing that could help me materialise the project came about. in fact, many people said that they didn’t understand what i was talking about.
Below is an example. sorry if its too difficult to understand…
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Per Attached: The Free iTV Presentation provides the wrong revenue figures on the last slide, is generally in a draft status and is currently being updated. I will forward the newer one across when it’s ready.
Please note: the site is still very much in beta.
As your aware, I’m looking for investors on both a resource and cash investment level.
The Seed Capital requirement looks to be approx $150k Cash. The funds are to be supplemented via Government Grants, and potentially a JV agreement for the Development of the Platform. We have a range of non-cash deals that are being offered in association to the development of the commercial and technical frameworks required pre-build.
The milestones within this segment is expected to include;
- Web Development (www.theiTVCompany.com.au + www.mediaguidenetworks.com )
- Technology Specifications (TV-Anytime + DVB-SI + HTML, etc.)
- CDN
- DAM
- Streaming Platform
- Content Packaging / Encoding Interactive Packages
- DRM
- Meta-Data
- Interfaces
- ETC.
- 3. Legal
- IP
- Contracts (Commercial)
- 4. Investor Materials
- 5. Infrastructure selection / contracts, etc.
- 6. MOU’s / LOI’s
- Channels
- Technology
- International
- Strategic
- Set Top Boxes (DVR’s / PDR’s)
The build phase is currently expected to require about $500k Cash, under similar scheme’s of funding to the initial trench.
The business model initially provided organic revenues via channel and Set Top Box Activation Related Revenues from early stages, however later projections suggest that such revenues will be delayed until the build phase is completed.
There are many ways to “skin the cat”, I am currently focused towards an industry development strategy, that can leverage funds throughout an “alliance” community – rather than building and owning the system end-to-end (which I do not think would work in any-case). There are differentiating effects and methods to build the system. Through the development of a “commercial platform”, we’ll be able to properly assess the opportunities, and make a range of selections prior to seeking the commercialisation funding.
Key aspect The iTV Company wishes to operate, is the services software platform and support infrastructure. The Revenues are projected @ approx $28 ~ $34 Per Set Top Box Per Month (to iTV), via Advertising. I expect the ad. sales to compete with Internet pricing, and gradually increase with brand / product awareness.
The Differentiation is the ability to extend the Advertising opportunities in connection to the services being provided (ie: Broadband + Broadcast, vs. 1 Channel Broadcast)
Our network is cheaper to operate than any equivalent internet hosting platform, due to the networking platform and technical relationship with the last-mile. This also has a direct relationship to the quality of content, this platform is able to deliver (theoretically HD, in a commercially enviable position of not needing to buy internet bandwidth or contend with internet networks)
Total Revenue for the 3 FTA Stations (7/9/10) in 2006
| Seven | $983,000,000 | Annual Results – Presentation to Analysts 29/08/2006 |
| Nine | $870,000,000 | PBL Full Year Results Presentation – 23/08/2006 |
| Ten | $764,600,000 | Media Release – 2006 Results – 18/10/2006 |
| TOTAL Commercial FTA Rev. | $2,617,600,000 |
The number of households in Australia is projected to increase from 7.4 million in 2001 to between 10.2 and 10.8 million in 2026, an increase of between 39% and 47%. This growth is faster than Australia’s projected population growth of 25% for the same period. Source: ABS
~ 8 Million Households (not all watching FTA) / 2.6176B = $327.20 Per Household, Per Annum or $27 per month.
The Venture is directed towards commercially exploiting the technology project in the global market. (Namely Nordic (Denmark, etc.) UK, EU + AU. However the DVB Market is easily adapted to any initial development works facilitated.), and exploiting the network operation business in Australia (as a means to contribute to the global market, etc.).
A Franchise System (On-Going Rev. Share + “Version Control” in Aus.) needs to be developed, as does a suitable licensing methodology. Such methods will probably be consistent with any IPTV Laws that become introduced.
I further expect the project to have gained official support from the DTG and DR (or related parties) prior to the build phase.
The product provides DVR’s / PVR’s (Personal Video Receivers? Digital Video Receivers? Digital Video Recorders?) the ability to connect via broadband and Broadcast to Channel providers.
The Platform is based on the TV-Anytime standard, leveraging BD-J (Blu-Ray DVD Formats) for interactive content titles.
The distribution is managed by a Service Provider (ie: Media Guide Networks, Owned by The ITV Company pty. Ltd.) and is monetised on a per Minute of video watched Basis; as well as basic service fees in connection to the establishment and on-going maintenance of the channel provider systems.
The System retains Ad. Spending in existing Broadcast markets (broadcasters / Channel Providers) by providing a Non-Broadcast method to sell advertising, whilst also providing the means to generate new “broadband channels”, to enhance the advertising impact of Broadcast(/IPTV) Related Media, therefore encouraging more local advertising (& content) growth, in localised systems.
It is expected that this system will come under the relevant Broadcast laws, more specifically associated to ensuring the platform is “family friendly”.
This system will be capable of full HTML, High Definition, Extensive storage, Ethernet, Broadcast, Home Network – TV Content Experiences.
I’m looking forward to building content with multiple choice story lines, or helping friends and family produce content through the “point and click” editing of existing “stock” made available from my camera and broadcast “community” pages…
All Licensed properly so the artists get paid.
All standardised, so it can be packaged and sold to other broadcasters in other territories.
Commercially;
So far, I’ve received 100% positive feedback. Everyone I’ve approached, has offered a deal to get involved. So, the next steps involve pulling such opportunities together under “The iTV Company” banner, and formulating the opportunities into the project / business plan.
Please find attached Documents, to assist you in defining the technology platform and the opportunity.
