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Seeweekly news
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2005-11-21 |
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Network Traffic Growth Realized In Entertainment Sector |
MidNet, Inc. creator, owner, and operator of The Middle Network(TM), announced today that it has realized positive revenue growth from its core network facilities serving the entertainment sector.
As previously reported on June 29, 2005, the Company had reached the revenue milestone. Revenue growth since then has met expectations for the third quarter and is anticipated to continue to meet the Company's fourth quarter expectations.
"Projected revenues are specific to core network services only," said the Company's president and CEO, Tilo Kunz. "They do not include revenues anticipated from other key initiatives, such as videophone related activities and the franchise-marketing program announced on November 2, 2005. We expect revenues from these other channels to begin during the next eight weeks."
At present, core network utilization is roughly 5 percent of capacity. Based on current patterns, this translates to a potential of $200,000 per month per network segment. A network segment is comprised of a circuit or circuits between two cities. The breakeven point will typically be reached at 20 percent utilization.
"Service adoption by first-mover customers is indicative of a continuing migration to digitizing workflows within the entertainment sector," Kunz said. "While these early revenues are modest, they are tracking at a 300% average growth rate, quarter to quarter." |
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