With the changing mix of revenue and the anticipation that DMG and its subscription-based business models will grow more rapidly with an increase in distribution partners, management expects that the historic seasonality in quarterly revenue should smoothen out with more consistent quarter over quarter growth.
The fiscal 2013 gross profit margin for DMG was 64% compared to 43% for fiscal 2012.GPG's profit margins are 90% in the most recent fiscal year.
TransGaming has adopted a three-pronged distribution strategy for GameTree TV: i) the MSO and cable operator market, ii) the television OEM market, iii) Over-the-top device makers. Each of these segments represents a slightly different type of user but each market segment is growing rapidly and has the potential to contribute a large consumer base to GameTree TV
While the current distribution is quite strong and the consumer base within each of these distribution partners is growing, TransGaming also has a robust pipeline of discussions with other market leaders.
The Company’s short-term objective is to reach a critical mass of consumer adoption that allows GameTree TV to reach a tipping point to broad market success.