Okay, we are ready to welcome our next presentation. Please welcome to the stage CEO of FreeCast, William Mobley.
Thank you very much. Appreciate that. Good afternoon, everyone. How are you doing today? Good? Getting through it? All right. The most important thing I would say to learn about our company is it really has roots at a beginning that have kind of real roots at a real beginning. In 1996, my team created pre-buffering. 400-500 million people a day watch streaming. We were not clever enough to get it completely trademarked and patented for all the ideas and things, so we got the big L on the loser on that one. I think it's important to understand that it's probably super important to this conversation, so I wanted to start out with it overall so you know where these things come from. They don't come from new ideas.
I'm more like the Forrest Gump of the streaming industry because I've been involved in it so long, and the stories are unbelievable as they go along. First of all, we're not another streaming service, and that's important because streaming companies, they compete for their subscribers. TV operating systems compete for the screen. Think about what I just said there. Streaming companies compete for subscribers. We are not a D2C company. While we've been very successful, if again, I were to go back and waste your time here, I could explain to you why we've had some very popular D2C products. We woke up one day, and it was right after COVID, and what we learned is with everyone who was really strong in the usage of streaming because they had time now to spend and get it, we learned what they didn't like.
That was just as important because we've been data people for a long time. I think that really kind of moves us into this piece because FreeCast enables companies, I could use the clicker, that already have customers. They already have customers, and let's talk about who those people are. Our partners already have customers. They're wireless and telecom companies. They're broadband ISP companies. They're satellite providers. They're utility companies, and they're membership brands. They bring established customer relationships already. They bill those customers already. They've already been, in most cases, when you start thinking about telecoms and others, there's multi-billions of dollars of infrastructure that's already been spent. Think about what I just said. They literally originate consumers way before all this other streaming stuff begins. FreeCast supplies a white label media and monetization software. We're in the software business. It's very important to understand.
One partner in our world can open a large door because they have the mass user of consumers. Think about it. You are talking about 25,000 households in a utility. You are talking about 50,000 or 500,000 customers, but then you have millions of customers when you start talking about the telecom companies. It is a big business. Again, I am trying to take you out of D2C because really that is where everybody thinks about streaming. You think about your Netflix, you think about your Pluto TV, you think about all the things that you see, but I am going to bring that pretty solid to you here in a second and why it makes sense. We call this PEAC, our Partner-Enabled Addressable Customers. The clients that we have that already have customers that they already serve, that is a pretty big piece of business.
How the potential reach becomes revenue, think about it. You are talking about enterprise partners who already have the reach. Essentially, they have what I would call the marketing and the literal influence to activate users, and then, of course, there is engagement transactions which equal revenue. Here is the thing. That value is huge because that is where software also lives, and that is why software has large margins. Therefore, a lot of these telecom companies, I will give you an example. For billing purposes may use Amdocs. A large percentage of them would use this product. It might say T-Mobile, it may say Verizon, or it might say AT&T, but Amdocs has a large percentage of that market already. It is another idea of how software is already in this group. One activated user has multiple revenue paths.
You have advertising, you have premium subscriptions, you have sports that is on pay-per-view, but also in the subscriptions. You have movies and transactions. You have commerce. You have partner communications. Let me go through those real quick. Advertising, you have seen a big change in advertising in the last two years. Advertising was set up so that it was basically DAI, dynamically ad inserted, because it could learn little patterns and things about your viewing habits, and then they would go back, and they would try to do match, and they would serve you an ad. You are seeing a lot of zen moments, and you are seeing a lot of information where these calm breaks that come in. What I see, and frankly, excuse my French, I am pissed off about, I see a $25,000 ad wasted. Here is the reason why in most cases.
I cannot say for every case, but it is pretty simple. The ad is wasted because those data points that they put in there, a lot of the systems that would serve you that ad, the ad-serving systems cannot accept that much data. You can create all this data about the person that you want. I am talking about voluntary data. I am not talking about somebody going out behind your back and trying to get data in a negative situation. I am talking about positive data.
They go in and they try to apply that data. It does not connect. That is why you get ads that are different. You might get different language ads. It is a bad system. Premium subscriptions are premium subscriptions. Anybody who, if you have a place where you become the marketplace and you can sell subscriptions, there is obviously a reason where monetization lives.
They pay you for that, or they're going to go out and market to you directly, and that's a very high expense. That's where a lot of the stocks that you'll see today are suffering because of all these loaded costs. You have sports pay-per-view. We all know what that is. It doesn't make a difference if it's a pay-per-view fight or if it's some type of subscription that you buy throughout the year. Movie transaction, commerce, and partner communication. This is the thing that I want to focus on in this discussion, partner communications. If you're a telecom company, I'm just going to lift your phone up.
Is there any reason in the phones that you don't have that you don't have a screen that has all the little things that you already have, which is generally going to be the date, going to be a weather pattern of some sort. It's going to be your schedule. You're going to have some things there, and you're also going to have something pretty important. What if that's in the TV? Think about the TV. I come in, this is my neighborhood, it's branded. You know what? The garbage is going to be picked up on Friday because Thursday's a holiday. You know what? The pool's being surfaced. You know what else? Here's where I can pay my HOA fees, but here's all the information about all the things that are happening in my neighborhood around me that I've chosen that are important to me.
Partner communications, if you're a telecom partner, you've had no telecommunications other than push SMS messages to you and sending you a message. Why have they not ever owned the screen? There's 650 million smart TVs out there. There's 7 billion smartphones, most of which are used for media delivery. But you go all the way to the back where all the bloatware is and things that you probably have never clicked on, and most of those things that came with your phone. You don't care. There's no interface that gives you proper things of information. What's even cooler is what happens if all your media, not the apps. We're not talking about a Roku TV or a Google TV where you click on that app and you dive. You go app diving, and you come back out. You want to go check the other server.
What's on that one? And you dive. What happens if somebody takes all the data and you have a Netflix carousel, you have a Paramount carousel. You've selected the things that you have in your subscriptions, and you've got it. But you know what's even cooler? What's even cooler is we benefit without owning the content. We're not in the content game. Content companies want distribution. What we're talking about is bringing big customers, telecommunication, and by the way, we've done this. Our POCs are already in place. Go back and look at them. We started with small phone companies. We started with small regional utilities. Then we moved into tying together 13 sovereign nations in the Caribbean Islands. And now we're moving into 210 DMA markets that TVs run in the United States.
Now we are adding in Starlink and DIRECTV as a partner because you still might want A&E through Syfy cable channels. Believe it or not, there are people who still want those type of cable channels that they want to watch live as they happen. Think about that. Because now your enterprise partner, they want the engagement and the monetization. Why haven't they been getting it? Why is it down here at the TV level and at the streaming app level? Everybody can still participate, and we connect them. It's that simple. It's software. Again, a very important piece of the puzzle because it's not infrastructure. It's not marketing. They do all that. All right, more than television. It's two-way relationship. As I mentioned before, you got broadband upgrades that could be discussed. You've got your wireless plan offers.
You have your residential information that you can share, and you have member benefits. You have different buckets that we appeal to, telecoms, ISPs, but you also can appeal to brands. A Costco wants to have Costco TV. Why isn't Costco TV not available that they can provide to everybody if they can make it? That even they have little specials and ads and things in that. They don't have to bomb it because you're still going to have the normal stuff that you do, but they could be represented in these types of products. In this case, entertainment gives customers a reason to return. Software-led, partner-branded, scalable by design. It's very simple. It's a white label platform. Whoever it is, we brand it. It's provided to them. You got multiple devices and services, and it's designed for repeatable deployment.
In our world, it doesn't make a difference if you're telecom, doesn't make a difference if it's an ISP, doesn't make a difference if it's their customer. You live in a building in New York and the ISP is providing bandwidth to that building, the building should have something that has them all completely communicated with, tied to, but give them something of value. Here's the five metrics that matter for us. Partner-enabled addressable customers, which I talked about a minute ago. Activated partner users, makes sense, right? We talked about transactions per user. The revenue comes from that activated user, and the revenue per enterprise partner is what we're going to measure at the end because that's where it really comes to play. People have been asking me all day, "Okay, great. That's wonderful.
How do you measure these partnerships where you share revenue?" Well, it's not always the case. If you go into a community like a utility who already does their gas, electric, water, and provides now their bandwidth, all of a sudden, you now have a relationship where you bring in a DIRECTV to so many of those homes, which is a streaming product. What happens? There's door fees. There's door fees, but then what we do is in those advertising models, we share that revenue with them as well. Because we run the ad server. We can do that. All right? Let me explain that real quick. I don't know if I said this earlier, but if you go back and you look last year, four big advertisers moved out of The Trade Desk.
It was Google TV, it was Amazon, it was Roku, and it was Facebook. We did the same thing because using the ad services and all the mixed ads and things that I mentioned to you have a lot of agents and a lot of fees in there. We don't need that. We already have the customer, the client who has customers, and what we need to do is we need to be able to provide them those ads direct because we have the data. Here's an interesting point. If you go back and you think about what I said to you a moment ago. When you go app diving, ESPN knows what you're watching and what you're looking at in their app. Netflix knows what you're watching in their app, certainly Paramount, and on and on and on.
You know what's cool about that whole thing when I let you put up all your carousels and you've created, you've added your own? When you go from ABC's "Grey's Anatomy" to NBC's "The Voice" to CBS's "Blue Bloods" to the YES Network to catch a Yankees game in New York, I'm watching you go across all the platforms because why? Remember I said we're the data company? We're the data company. So it's one thing that we're the white label product that delivers a signature software addressable to their customers, which requires no infrastructure increase at all. It slides right in there. It's a software piece. But think about how important that is because they now have data across all the different app content points that now allows that advertising to be really super. You get into local markets, the car dealers. You get into the home services.
Those are extremely valuable. We do have an investment thesis. Again, we just ran those down, which is partners, reach, activation, transaction, revenue. FreeCast is building a software that helps enterprises participate in the media economy and their existing customer relationships. The connection is just the beginning. There was a lot of information dumped on you all here in about, I want to say, 14, 15 minutes. Here's the thing. There's a lot of questions. I know you have questions and maybe you don't, but I'm here to help you understand that it's really that simple. Probably some of the biggest things that have come from all of these conferences that we're doing is everybody's looking for the catch, they're looking for the gotcha, they're looking for something, and it's of its time.
When I started this conversation with you, I shared with you why I know a little bit about streaming. I also shared with you how we came through different ideas to get to where we're at. But what I'm sharing with you today is this is not a guessing game. The POCs have already been done. The business has already been brought to the table. The partners are already coming into the company. You have to realize that the connection is just the beginning because the people who truly own the customer, truly own. You could go buy any device you want off the shelf. The connection. The connection owns the customer. We went like that, and the bandwidth was gone in this room right now, it would be a monumental problem, I can assure you that. A monumental problem.
Their ability to bring the media to you is no different than it is to bring the support, any different than it is to bring all the items that they provide to you. This is not a guessing game. The implementations have begun to happen. It is a scale. The deals begin to stack. Think about the usage case. Let us go a couple more layers. Hospitals. We flip switches in the back. We certainly don't want bare-knuckle fighting with somebody who has been hospitalized for a traumatic accident in a hospital.
You certainly don't want un-family-friendly entertainment in the children's wards. You certainly don't want all the different things that could be, let us say, selected by you in the future. That is where we are going. Why not select everything yourself? Why not have the newsletter that comes to you and tells you about all the really cool items that you are interested in?
If there is 10 million customers, there is 10 million newsletters. Think about that. On a Wednesday, it is going to drop you a newsletter. That newsletter is going to come in because you like the Packers, and you like this, or you like that, and all the things that interest you. Isn't that really what you care about? It is the same reason why we are handling the advertising the way we are handling it.
I want to be able to give you advertising at a local market that you care about, not what is being pushed upon you. We are going to some really extreme levels here. Let me give you some of the ideas that are beyond ideas but are being implemented as we speak, and we are sitting in this room. In fact, one got launched today. You should be able to search everything in one place.
When I say that, I am not talking about the titles or who has what, but they won't let you see that they don't. You should be able to see everything. So the search actually will give you that detail around everything. The second thing that is really important here is loyalty. If you are going in and you are watching free content, and you know that free means free with ads, and you have got to suffer through those three ads, one of two of two, three, whatever.
Here is a really important point. What happens if you earn loyalty points when you are watching that and it goes into your bank over there, and more importantly, in that bank, you then bring over and you spend on your paid services? Hold up. Wait a minute. That is kind of cool. Your credit cards give you cash back. Why aren't those things that I do?
If I click on anything on that screen that gives them information, I get more. Why shouldn't you say what you want to see in products and ads versus what is just delivered to you? You say, "Well, there is a lot of advertisers that have new stuff that want to break through." Well, there is places for that as well. If you think about all these little things, we have gone in and we put in a piece that everybody said, "Well, we don't need another payment system." Okay, we don't, but we did a deal with Mastercard International. Well, everybody has got a wallet.
But what happens when I give you that ID? You put those digits in, you never have to give your credit card information, your personal details again, and that gets pushed up to your provider. Now you say, "Well, okay, that is kind of cool.
At least I know where all my payment sources are at, and I know what the bill is that month, and it gets paid by that one bill, and that's kind of cool." There's a lot of commercials out there today trying to promote you on that. Let's take it one step further. What if you could pause, start, and stop those subscriptions? You say, "Whoa, wait a minute. They're not going to want to do that. They're not going to want you to do that." What they don't want to do is they don't want you to cancel that subscription because you don't give them that option, and the churn and the cost to go track you back down and to bring you in.
You need to look at it differently, because that's not what they. If you pause it because The Rock does Ballers show season number three for some reason on HBO and comes back and I got to go pause something I've been watching, I should be able to do that. It's based upon your interest. I want to take the last five minutes, I want to close with, as we said before, the company itself is located in Orlando, Florida. We have about 150 employees. We have some really cool technology that continues to grow. We've been doing it for a lifetime. I want to answer any questions you might have. I kind of threw a lot on you today. But it was an opportunity for us to come in and take a track run at this thing. If anybody has questions, please raise your hand.
Let me. Sir.
Could you talk about your marketing team? You talked about some of the different partners you're going to go after. What kind of a team do you have to go after them?
What does your pipeline look like now? Are you in discussions?
Do you have MOUs? Do you have signed contracts?
Yeah, this is a great question. The question was, for repeating purposes, was how are we attacking the potential opportunities that are available to us, and do we have contracts and/or how are we going about getting more? First of all, yes, we do. We have several contracts listed that are in the pipeline. They started prior to the rebuilding of the ad server, which I mentioned was a critical point and one of the things we had to have. There's three that have been closed that are already in operation, which are MVNOs, which are your mobile companies. We have several large ones that are in contract stages. We've already done a utility that's already been done going after more.
The Starlink deal is for business purposes, so really what can happen there is we can apply that service with the white labeling for hotels, motels, hospitals, any of the MDU opportunities. The DIRECTV deal is closed. That gives us an opportunity to do the integration. So when the consumer comes in, while they have all the free streaming services, if they have that contract for that area or that community, still want your cable channels, you click it's available, if it's in there. We have several other agreements that are in the pipeline, and we also hired for our major telco satellite relationships. We brought in a consultant, who was for 15 years the Department of Defense and US Space Force. She probably wrote a large percentage of all the contracts for most of the countries out there. That's a pursuit there.
At the same time, we have commercials, what we call our MDU group internally. We're having discussions with all the major brands, builders, especially the smart home communities, because most of the things that they're already doing is putting a lot of efficiency tools that also relate out to the homeowners associations and things and the common areas. There's a lot of business. Business is, as you'll see, we're on a very good schedule for bringing business to the table on a consistent basis, and our team is very skilled. We have a very skilled executive team. Again, I've been down this road a couple of times. More of a product guy, but we're very in tune with the market and have been for several years. Several years. Yes, sir.
Oh, sorry. Could you have me explain, because you said this year you spent $10 million. You brought in about-
Correct
$700,000.
Correct.
There's 56,000 subscriptions.
Correct.
Was there a capital layout to create this infrastructure or what is that?
Yes. Yeah. If you go back and you look at the S-1, there's a big joke Bill and his wealthy friends spent several million dollars building this thing over a long period of time. We also had nice revenue periods when it was a retail product earlier on. We made the decision in the last year and a half, is before we decided to get into the public markets to build that ad server. You lose all your revenue that's built into those ad servers, right? Thankfully, the clients wanted to go to this next level as well. From March, which is our third, or excuse me, our last quarter of the year, right? March to June. Because we're a June 30 company. If you think about it, we essentially took the last nine months to build that ad server and just launched it this last March.
Because when we moved out of that whole Magnite, SpringServe, The Trade Desk area, that period. We went from almost nothing to the revenue that you're speaking about. We're also getting the ad partners who, frankly, a lot of them I've known for years, some of the largest in the local markets in America. The revenue is coming just now from that quarter, and so what you're looking at is that compared to a YoY. The spend has gone down, the growth is going up, and that makes sense because I kind of think of it as an inverted Amazon theory, right? A guy like Amazon has to build software and then build all the infrastructure to deliver the goods and services. We're just building the software and everybody else already has that infrastructure.
Our goal is to deliver it to those who can make it work. So we see it just now being simple scale because you really don't have a lot of manual infrastructure that you got to deliver or physical locations and things of that nature. This is one kind of client specialist for different areas, and then they're going to have little support type teams. It's really not much, in fact. It's actually dropping. Anyone else? We got 25 seconds. It'll be a speed run. No? Okay, thank you everybody. I appreciate you taking the time to visit.