Rob Ellin: Correct. Once we — yes. So as an example, right, on Vigilant, we just got a 70,000 check, right? We get that check, right? It’s already handed off, right? They’ve already hired the writers, the right. We’re executive producers on it, and we’ll continue to get paid as producers on it. We’ll continue to get paid back and is successful. And literally, if it makes it, you make it the first year, you’re going to get paid a lot of money. In mid second and third year, this becomes mailbox money for life.
Jon Hickman: Who in your shop is shepherding that initiative?
Rob Ellin: Yes. So there’s a team of people. So remember, it starts as a podcast, right? Podcast audio. Imagine that now you can go instead of scripts and book sell for $1 million, $2 million, right? Then you get a high re-orientate here you already have proof that the shows you’re already up the traffic sorry, there, the audience is already there. And now you’re selling to Netflix and you own, okay, the show is already #4 on Apple, right? It’s already had 100,000 downloads in the first week. They’ve got proof of concept. They’ve got proof of customer base. It’s a very unique model. And I’m really excited about this. I think it’s going to be a real winner for us. And it will take a little bit of time, but just as the small bits of money coming in, come next year to be very substantial, one coming in and growing every year.
Jon Hickman: Real quick. Can you remind the 4 that you’ve already announced Jilani, Barmentown, what are the other two?
Rob Ellin: Yes. So opportunist, which amazingly just we want just launched of doing 100,000 downloads. We’re making a lot of money just off the reruns already, right? So that first 3 years of it, we acquired that from Cash Media. This already sold to a major network guy. Opportunities is partnered with a network to do a documentary up just 1 season of it. Guy, we’re out with 2 other seasons to the networks and the other one is called loss in Panama. Will add another one almost — we’ll probably add another one every couple of weeks, Jon right now.
Operator: Our next question is from Sam Lee. It appears that Sam has disconnected. I’ll move on to our next question. Our next question is from Sean McGowan from ROTH MKM. Sean, please go ahead your line is open.
Sean McGowan: Are you able to hear me? Let me start with Aaron. First of all, congratulations, Aaron, on the recent promotions. But second, can you give us an idea exactly when the 10-Q will be out?
Aaron Sullivan: So we are looking at so it will be early next week. Deadline is Wednesday, the 14th. We hope to get it out maybe a day or 2 sooner.
Sean McGowan: Would you mind repeating those percentage breakdowns on the revenue between subscription and ad? And any kind of color you could provide on revenue outside of those 2 categories?
Aaron Sullivan: Yes, sure. So let’s see. I think we mentioned that Slacker revenue was $16.8 million for the quarter and PodcastOne was $10.4 million. So that’s 2 big buckets there. And then in terms of the percentage, it’s 54% membership and then 46% advertising sponsorship, merchandise and other for the current quarter and then the prior year quarter was 49% membership and 51% advertising sponsorship merchandising and other.
Sean McGowan: That’s just within audio, but can you just give me any color on revenue outside of that? Just any meaningful trends going on there?
Aaron Sullivan: So the outside of that, you’ve got basically merchandise revenue make up the remainder.
Sean McGowan: And then on the $20 million deal, if you could provide a little bit more color on that, for example, what time frame does that cover? And is all of that revenue going to be booked in kind of in 1 bucket? Or will it be spread around?
Aaron Sullivan: That will be — that’s over the course of the calendar ’24. So you should see it in a relatively straight line manner over that period. And that will be in the advertising category. .
Sean McGowan: Okay. So it’s all podcast?
Aaron Sullivan: Correct.
Sean McGowan: Then back to Slacker for a second. Any updates or color on expanded relationship with Tesla or with any other equipment manufacturers in it in the past that there could be some additional partners, audio streaming, anything there?
Rob Ellin: Yes. So let me jump in on that, Sean. So what we just announced is that we expanded our pipe from 35 to 42 partners, right, — streaming partners, the first of many of these B2B deals. And we fully expect that at those 42, somewhere in the 5% to 10% of those will close this year. So anywhere from 2 to 4 of those. And each of those are with $1 billion to multitrillion dollar companies. Very similar to this type of deal. And so we can’t be more excited about the pipeline. We brought a great team out of Microsoft, who’s done billions of dollars of B2B deals and as you know, Sean, my entire business and digital turbine was built off the backs of B2B deals. That was just with carriers and hardware companies. We have 8 verticals here.
So we fully expect to expand our auto business. We fully expect to expand our carrier business. And historically, Slacker has had partnerships with everybody from Samsung to Verizon to T-Mobile and as interest rates rise, and you’re going to hear this theme exactly as I described in Digital Turbine for 7 years. The same trend is here as interest rates are going up, those commodity businesses must have a closer relationship and must own the data of their customers, and you’re seeing more and more of those partners now lining up with content and owning their own content and having their own content deals versus giving it to Apple and Android and just allowing them to own all that data. So really exciting pipeline, the biggest by far in the history of the company.
