Recurring Revenue Base -that is what is NB!
Key wording in the TNG NR-which often gets lost to the rank and file and the priviledged amongst a crowd-and not matter how many times you hit the drum with a hammer it still sounds hollow...is the fact of the Transgaming Model being a recurring revenue stream thru its subscription base of end users-I have seen in Junit's posts pointification to this fact being key to how quickly Transgaming will reach profitiability but it seems to fall on deaf ears-for a subcription based recurring revenue stream has been the model for success no different than what you pay for cable-internet bundling-or highspeed DSL TV Bundling-it has served the Telco's well thru tough times and good times and it has served the cable companies well in identical situations-because it becomes embedded into your "gotta have" "can't do without" part of life...netflix is another model of success-if Netflix kyboshed as well as Video On Demand kyboshed the Blockbusters of this world where you went out -got in your car and physically went to rent you DVD's and before that Video Cassette-what Transgaming is bridging the gap on and for as a common thread enabler to the smartTV sector is no different-its earth shattering in many ways for an entire Industry-because it changes the status quo-infact it kills it-and we will see as industry pundits point out-a migration to smartTV Gaming over console-set box's...because of the convenience factor and minimial upfront expense involved over older legacy systems of console gaming-AND TNG enables...ENABLES across mulitiple platforms including mobile the gaming experience to be engaged-AND electronics manufacturers-noteably big time TV manufacturers are scrambling to partner with whomever to be able to capture a part of this mega multibillion dollar pie...as well as service providers like the telco's and cable companies...its not unlike what they did when content providers were being snapped up like crazy by carriers when the migration was going from 2G-to 3G and eventually as the last mile to houses expanded as did the technology-into 4G more and more prevelant today.
So we are still early into things but to the informed it should be pretty self explanatory as to the importanc of what TNG provides and brings to the table in this migration away from the PC Desktop and the Gaming Console towards growing expansion of same services-in web enabled smartTV-who is seeing everyday an expansion of utilization-ALONG with more and more useage of Mobile devicing amongst old and young alike.
Pretty simple stuff...you gonna be spending $70 per game or more depending on demand-having to upgrade your Xbox or PS every two years to stay current-spend $1000 or more on
purchasing new games...when you can buy a premium package for $9.99 per mth hassle free with a minimal amount of cash out of the wallet upfront or the necessity to stand in a line up or worst camp out on a frozen sidewalk to be first in line-when a hot new game hits store's?
There is a reason Panasonic lost something like $5Billion USD last fiscal year...that is not a small amount of money-and as we move more and more from hardware to software/service based application the rate of adoption increase porportianetly.
Both my kids have smart phones-game on them-do nearly their entire online stuff on them-my daughter uses her Laptop (already outdated) for her files created in the writing of her book-the desktop is used for printing purposes for school projects by both her and my son and to download itune crapola on their phones-and that's it-my son uses his Iphone exclusively for just about everything-he games in his room on a 2yr old Xbox 360 (already stated) but his TV/Monitor is not a smartTV cuz if it was-he would be paying his own $9.99 per month subscription rate for his gaming purposes and the other nite he was standing in line at BestBuy or Future Shop in minus 10 overnite weather-for some deal on games the stores were offering as door crashers to get kids like him in the store...he was not one of the fortunates-by the time he got in the store when the doors open in the morning there were a couple of dozen ahead of him and he was SOL and came home...first thing out of his mouth was "man what a waste of time-why couldn't I just click online and get my feed for the game like I do with TV programming and movies with NetFlix-his SUCKS man big time"....I have two smartTV's myself-one in the family room and one in the master bedroom-the setbox upstairs was brandnew this past year and it comes with Netflix and smartTV applications and service providers embedded when you update/upgrade to newer systems-we check our email on the smartTV in the master bedroom first thing in the morning after having a shower and getting ready to depart for work-only thing I use the desktop is for this stuff...posting purposes-cuz at middle age I am half blind and prefer the larger screen-if I could figure out how to hook up the keyboard to the 60inch Plasma to my left? I would do my stuff on the TV in a heartbeat.
Anyways...in hockey as in life and inparticular to investing you have to figure out where the puck is going and evolve with the game as it is changing...case in poin Matt Cooke was an idiot in hockey-a predatory hitter of no extreme-game changed when the rules changed-he had to change or would be no longer in the NHL-and no team would have touched him for his services-THE GAME here is changing-there is a revolutionary sea of change upon it...not an evolutionary change where its just new setbox after new setbox-updating...buying new hardware to keep current-but a revolutionary one-and Transgaming Inc has placed itself accordingly.
And as the sea of changes were talknig about-seas more and more availability of high end product enriching the smartTV gaming selection and experience...just the same way NetFlix and its business model-put Blockbusters and its like out of business-it will happen over time to SetBox utilization and new sales as well and the uptake in service providers selling subscription based gaming over smartTV platforms and mobile device packaging...all covered within the same subscription fee only over any device the subscriber owns with technology where the subscription service can be provided...this type of service with a HUGE CONVENIENCE and TIME MANAGEMENT FACTOR will see its sales thru a growing customer base WORLDWIDE-increase prolifically for when you start to see that tipping point where mass migration to a new standard occurs-like seagulls over water-its near impossible to change their direction and intent on where their headed and going.
We are early into this sea of change-and that's why TNG remains a .16 stock today but if you look at the traction in the Q reporting of TNG? you can make a pretty good prediction of where this thing is headed pretty fast and still early into its lifecycle before its bought out down the road IMO for more $ than the short term thinkers ala IBtrade-can imagine.
Nuff said.
SS