New Frontier Media Inc. F1Q09 (Qtr End 06/30/08) Earnings Call Transcript

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2008-08-08 11:38:11.0

Tags: New Frontier Media Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question is from Richard Ingrassia with Roth Capital Partners. Please go ahead, sir.

Richard Ingrassia - Roth Capital Partners

Thanks. Good morning everybody.

Grant Williams

Good morning, Rich.

Richard Ingrassia - Roth Capital Partners

Grant the $3 million just to be clear, the $3 million potential in national revenues you cited, that does not include the UK IPTV initiative, right.

Grant Williams

That's correct. Yeah, that is just for the Transactional TV segment business.

Richard Ingrassia - Roth Capital Partners

Okay. And so that will be the new carriage contracts in Europe and then the press release says it is Mexico. Can you a little more about the coverage there?

Ken Boenish

This is Ken, I can talk a little bit more about that. We are doing quite a bit in the area of adding new business on international levels and we've got some contracts signed, sealed and delivered out of Canada. Our content recently launched on those platforms. We have achieved a couple of launches in Mexico already and we are set to want content in Europe actually starting this month and we expect subsequent launches in the coming quarters.

So we are off to a pretty good start and we are pretty pleased with the direction of this business, the outlying factors as Grant mentioned was or continue to be in terms of timing when these new distribution partners come on board and when they actually load the content onto the platforms.

Richard Ingrassia - Roth Capital Partners

Okay, thanks Ken. Well I have got you, if you back C-Band out here obviously you have got some growth here year-over-year, but would you say that you are seeing the type of typical countercyclical strength that you see in the industry during a recessionary period or maybe a recession?

Ken Boenish

I actually don't think our growth has anything to do with necessarily the economy, the fact is that domestically our business partners continue to grow their digital subscriber base. In general our VOD products continue to outperform all of competition by material margin. And we expect to continue to add product on existing platforms and in both the pay-per-view and for video-on-demand.

In terms of pay-per-view, we think we'll add somewhere in the neighborhood of over five million new network homes to this year. We expect to add 12 to 20 hours of VOD programming on platforms that serve more than 13 million video-on-demand subscribers. And at the same time, we are continue to be frugal about our investments in the domestic business and finding ways to operate this business more efficiently by incorporating new processes and procedures that can increase our output and reduce our manpower.

 

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