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Across The Universe: Universal Media Holdings

by Glenn Wilkins - AllPennyStocks.com News Reporter

July 13, 2005 (AllPennyStocks.com Media, Inc.) - In the 1980s feature film, "Pump Up the Volume", Christian Slater's character is that of a high-school loner who suddenly gains power over his classmates by broadcasting subversive messages over pirate radio. The community is turned upside down by what it hears, before the kid realizes one stark message: information is powerful, and the transmission of it even more so.

Lately, so-called Low Power Television has come into vogue in hamlets all over America. The technology has been out there since the early 1980s, when the Federal Communications Commission (FCC) relaxed its regulations on translating programs for longer than 60 seconds per hour from a distant station's system, allowing translators to broadcast from any suitable source. LPTV - that is, a station with a signal of less than 1,000 watts, was the result of this liberalization.

Universal Media Holdings (OTCBB:UMHD) maintains that it is one of the fastest growing media outlets in America today, delivering a full spectrum of creative production and targeted media distribution. Headquartered in Hendersonville, North Carolina, Universal has under its umbrella Universal Broadcast Network (UBN), which owns and operates a growing stable of LPTV broadcast stations. It currently holds the rights to broadcasting in 16 markets across the U.S., with potential reach topping one million households.

In the early days of LPTV the medium was seen as a local community service, primarily focusing on rural areas and niche audiences. LPTV service began to expand as the equipment manufacturers were introducing significant cost and feature improvements for all broadcasting components.

Every major television network, including NBC, CBS, ABC and FOX, now has LPTV affiliates in a number of Nielsen rated markets. Other networks, such as Univision, UPN, WB, TeleFutura, and PAX also have LPTV affiliates in many markets. The slow and steady growth of LPTV is important to potential investors, since LPTV is not likely to be a flash in the pan.

When its vast potential is realized, UBN networks will penetrate a huge, and still largely untapped, Hispanic market. UBN will be helped largely by its partnership with Turner Media Group and its subsidiary, the Networks Group (TNG), for which it's creating and producing what it calls "engagement branding content" for six series of shows. The aim is to create what UBN calls "sticky" viewers, more interactivity driving higher response rates, and more revenue through direct response and VOD/Interactive television.

The network also appeals to clients in need of high-quality corporate videos, news releases, streaming video, Internet digital media, infomercial, or state-of-the-art web design, not just those out to escape to quality TV programming when they get home from the work world.

In particular, the Hispanic market is already big in the United States, and only growing. According to experts on economic growth, Hispanic buying power for 2002 totaled $580 billion (all figures in U.S. dollars unless specified otherwise), with a predicted compound annual growth rate of 8.7%. (The standard rate for non-Hispanics is 4.8%.) This growth is ignored at one's peril.

The key element for a fledgling business is partnerships, and Universal has been busy forging them. Among its latest converts is Serefex Corporation, a company, whose product line includes Fridge Tapes, Fridge Notes and Fridge Pics, and which has found a following in several national retailers such as Walgreens and Ace Hardware stores. For Serefex, UBN will be producing a national TV marketing campaign, one that was announced in April.

On the program side: UBN carries The Men's Channel (fairly self-explanatory; stuff that guys want to watch), as well as iShop TV for those who would otherwise "shop till they drop", and a host of religious programs on Hope TV and Almavision (focused primarily on Hispanic Christian viewers).

Universal Broadcast Networks has 33,000 square feet of broadcast currently at its disposal and claims to include the very latest in cutting-edge technology, including special effects, graphics and 3-D animation. The networks have authorization to broadcast in 10 states, with new stations being started up in Texas, New Mexico, California, Oklahoma and Florida.

While for the revenue and profit figures for this company remain elusive, things are potentially explosive for the stock (which trades on Pink Sheets under the symbol UMDH), even though shares have remained in the low end of a 52-week range from 20 cents to below a penny. Given its partnerships, the fact that the industry and market are growing almost exponentially, investors might be advised to take a peek at UMDH, while its price remains as low as its broadcasting power.

 

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