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Message: RE: Railway Media -- JHawk

RE: Railway Media -- JHawk

posted on Aug 08, 2005 10:24AM
We`ve done the numbers on AMTRAK if they go nation-wide. B-Lunist found that they serve 25M passengers a year. That extrapolates to an average of around 70,000 per day. If take up were 1 out of 10, that`d be around 10,000 digEs (when units in rotation are thrown in). But there are added considerations, e.g., how many passengers are for short hops? On the other side, if nation wide, how many do they want to have available - everywhere?

Anyway, all things considered, assuming their plan is to go nation wide*, my low-ball number is 5,000 units.

* Though the original draft flier we saw said ``available on all routes``, this latest on the AMTRAK site says ``available on selected routes``. However, initially, one would expect ``selected routes``. Also, short hop commuter trains are not suitable, so that alone could explain the ``selected routes``.

So I`m looking for an order for at least 5,000, which should get us around $600K to the bottom line.

But I KNOW nuttin`!

Regarding hospitals - great venue. As RP said, they aren`t moving all around the world all the time. Much simpler logistics.... And I would expect take-up to be at a much higher rate, like 50%+ of patients, plus extended visitors. And if we captured that business with more ``influence`` than in the Wencor/IFE scenario, and with a more feature-rich device, we could demand a much higher price per unit/higher margin (I keep thinking about us charging Wencor some $635 per unit, and them turning around and charging their customers some $2K each, with very little ``value-added``, though they have one potential ``biggy`` - content to pay for).

Next best are rental car companies. They`re already in the rental business, and the devices would move with the cars. Not too complex....

And with both of these, if we are the conduit for content (which would probably be the case) and can get it at a reasonable rate, we`re in there.

They`ve ``promised`` revenues from DVAP this Fyear, which makes me think we`re much closer on these than many suspect.

SGE

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