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Based on a numerous assumptions we have made estimations on how much revenues Net Insight might generate from the Formula 1 branch.
Other than that there still remain several untapped opportunities.
Tata Communications is the official connectivity provider of Formula 1 content and has already tested the technology on the Singapore track with no time lag across the platforms.
The agreement has already generated significant attention within trade press.
Since it took them around two years to develop the technology there is little or no doubt that Net Insight could win large business on the market before competitors start to emerge.
We also still regard the Formula 1 agreement with Tata Communications as one of the best to sign at this early stage.
Industry participants involved in sports and leagues such as NFL footballNBA basketballNHL ice hockeyMLB baseball and Premier League soccer might in our view be next in line.
The willingness to watch via OTT is considerable in for example the United States.
Since an increased interactivity is one of many football betting analysis software arguments for this technology we also believe that media participants within the e-sport industry could be interested of it in the future.
Except for this we have also identified several other industries that should be interested in a service that enables truly live OTT content, and the most eminent one is undoubtedly the online betting and gambling industry.
With truly live OTT content the opportunity for betting companies to innovate new betting variants and services emerge.
But it is yet not known what kind of revenue model that will be used.
The company has however mentioned the.
After some research we have identified a variant of this revenue model that could be used in the Net Insight and Tata agreement.
And we have also made some revenue estimations.
From start we thought that it would be most reasonable to assume that Net Insight will be compensated based on the amount of monthly unique users that access live OTT content through their service.
After a few discussions we however rejected this option.
We now argue that it is more likely that Net Insight will be compensated based on the resources that are being used.
Based on a few assumptions we have thus estimated what the Tata agreement could generate in terms of revenues.
Alpha Researcher football betting analysis software expects that Net Insight will charge their customers based on the amount of resources that the end-users have utilized.
Currently content that is streamed with 720p or 1080pwhich implies a transmission of 0.
A user viewing 100 minutes of a Formula 1 race on OTT would hence utilize 2.
To make it simple we assume that the average data usage resource usage for one OTT user is 4 GB per race.
Online streaming services suggest that one GB of data usage costs USD 0.
The average Formula 1 fan would thus generate USD 0.
It translates into SEK 3.
On average each race has around 30 million live viewers globally.
If assuming that 15 percent of them watch via OTT in 2018 it would imply that 2.
In numbers it would translate into revenues of SEK 7 million per race to Net Insight, if assuming the SaaS model and our pricing assumptions.
Annual revenues would thus reach SEK 135 million given 19 races and all of our assumptions.
Even at half of the assumed price per GB or at half of the market penetration Formula 1 standalone could bring in significant revenues to the company.
The above made assumptions are however just rough estimates made by us, and nothing definite.
It is just a scenario which might be reasonable to assume.
It is yet football betting analysis software known that the revenue model will be based on resource usage.
If revenues will be based on the resource model it is however also worth taking into consideration that worldwide broadband capacity continuously is increasing.
Also pay attention to the fact that Ultra HD most likely will make its real entry into the market within a few betting analysis software />Streams withimplying data usage of 11-19GB per Formula 1 race 100 minutes.
And more importantly, our estimations and assumptions are only based on Formula 1.
As previously mentioned there are several other sports that could benefit from offering a truly live OTT experience, along with other business areas such as online betting.
The combination of those two are somewhat tickling.
Imagine FIFA Football betting analysis software Cup in 2018, when 1 billion viewers and potential gamblers tune in their devices to watch the final.
Assuming that Net Insight reach 10 percent of the global audience i.
If using half the price in the calculation i.
In our view it is however likely that a revenue cap per event will be implemented.
These figures are hence most likely too optimistic.
They are in pole position.
We argue that they are in the delicate position to use such a SaaS revenue model as we have described above.
But it is still unclear where the pricing will land.
Our pricing assumptions are as previously mentioned just based on similar services that are available today.
And as mentioned above it is also likely that there will be a revenue cap per event for example maximum revenues of SEK 5- 10,- football betting analysis software 15 million per game or race et ceterabut as everything else this is so far solely a speculation as well.
To summarize we argue that there are significant growth opportunities for Net Insight going forward no matter what.
The analyst owns shares in the company.
Alpha Researcher does not take any responsibility for investments made in Net Insight.
It should absolutely not be seen as any investment advice.
Alpha Researcher will not be responsible for any errors or omissions in this analysis or article.
Remember that no one but yourself is responsible for your own investments.
Alpha Researcher has not received any form of compensation for writing this material.
This, and the link that was sent to your email address, is pay content that is copyright protected and owned by.
It may not be shared to third-parties without football betting analysis software permission.
The author of Alpha Researcher is a conservatarian and an advocate of free football betting analysis software and empiricism.
The blog's goal is to provide and host investment ideas, freethinking and diversified discussion.
Content published on Alpha Researcher will mainly focus on IT- Tech- and Media related topics associated to the financial markets.
Gaming and politics will also be frequently discussed.

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