Magicweb, Inc. (MGWB-OTC: BB)
Interview with:
Dr. Herbert Becker, Chairman, President and CEO
Business News, Financial News, Stocks, Money & Investment Ideas, CEO Interview
and Information on their
BOIP (broadcast over internet protocol) for broadcast delivery from the broadcaster to the distributor.


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Magicweb is offering a brand new technology that will revolutionize the broadcasting industry, much like the way VOIP has transformed the telephone industry

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TV & Radio Broadcasting

Magicweb, Inc.

5340 Bellaire Ave.
North Hollywood, CA 91607

Phone: 514-807-5245

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Dr. Herbert Becker
Chairman, President and CEO

Interview conducted by:
Lynn Fosse, Senior Editor
December 15, 2005

Dr. Herbert Becker

President, CEO and Chairman of the Board
Herbert Becker has been involved with the evolution of IPTV since before it began, in 1995. He is the patent/copyright holder of BOIP (broadcasting over internet protocol).

Who’s Who of the World, United States, Canada, Entertainment and Business, Nobel Prize Laurels candidate.

Herbert Becker is an author, inventor and has been involved with public companies at the capacity of President, CEO or Chairman of the Board for the past 15 years.

Company Profile:
The Core of Magicweb, Inc. (trading as MGWB)

Magicweb is the only company to offer B2B IPTV with the propriety BOIP (broadcast over internet protocol) with its EnterVision Broadcasting system.

Magicweb is a direct competitor to the satellite broadcasting system currently in use with the television and radio industries. 

The main objective is to become the premier source of television broadcast via IP to the broadcasting industry. To promote and market the MagicWeb brand name as a substitute or as a redundant service for the broadcasting industry. To become established as the catalyst for defining the convergence of the Internet and Television, to take full advantage of the Internet and the Digital Economy revolution.

To develop and launch the most comprehensive, completely interactive and customizable television-related website as a backbone of our primary services of broadcast delivery from the broadcaster to the distributor. And to promote and license the MagicWeb broadcasting products.

CEOCFO: Dr. Becker, what was your vision when you started Magicweb, and tell us where you are today?
Dr. Becker: “I started Magicweb in 1995 and the vision then was to be able to create Codex, which would allow for video to stream on the Internet. Back in that, time the Internet was primarily text based. There wasn’t much happening on the Internet; very few images and certainly no audio and the idea of video was a dream back then. As I moved forward we the technology, we were eventually successful with Codex, and you could see a video streaming with companies like Real The Deal and Quick Time. We continued the evolution until we had finally created in somewhere around 2000, a product called Broadcast Over the Internet Protocol, which was the next generation up from streaming. As we moved forward, we eventually moved into the realm of pure broadcast over IP (Internet Protocol), which is where we are now. Further, we never though then where we would be now, but it is a very exciting space, because now we own a technology and a space; it’s our own.”

CEOCFO: What is Broadcast Over IP?
Dr. Becker: “Broadcast Over IP (BOIP) is a patented technology that allows audio and video to be broadcast from point-to-point, using Internet protocol to transmit the MPEG to DVP compliance MCPC technology. What this does is let the television broadcast migrate over the Internet.”

CEOCFO: Why do we need that now?
Dr. Becker: “Right now the largest users of MPEG2 are for example, television stations such as ABC. When you go home and flip on your television and watch ABC, but ABC is coming to you from a cable provider such as Adelphia Communications Corporation (OTC: ADELQ) or Cox Communications Inc., network. They ultimately get it via satellite from ABC and the cost of transmission from point A, which in this case is ABC, to point B, the cable company, runs about $60 billion per year. It is a tremendous cost and it is the single largest cost in the television industry; our technology will bring that down to about one tenth of the price.”

CEOCFO: How do you get potential customers to use it?
Dr. Becker: “For the most part it is no-brainer. Up until about 1940, television was transmitted via aerial; what that meant was that you would go into your backyard and put up an antenna, plug into your television set and you would get TV. Over the last 50 years that has gone from aerial to satellites. We now have a technology that allows them to go back to the ground, which is using the IP and that puts the technology right back in the hands of the broadcaster. Right now, the broadcaster is subservient to the people who own the satellite, such as TelsatŪ Communications Ltd. or GE (General Electric Company – NYSE: GE), and the amount of business that they get from the television stations is very small; I’m told about 5% of the satellite industry business comes from television. Therefore, it is a small wonder why back a few years ago ABC lost their signal in the northeast, because they lost their satellite feed, and they waited nearly a month before they could find out the satellite company who could give them back their feed. That was a major loss, because every day they were losing hundreds of millions of dollars and had they had our system that never would have happened. They could have switched over to another band immediately, and never lost their signal.”

CEOCFO: So where does Magicweb fit in?
Dr. Becker: “I think that we are going fit in as a redundancy, where we will be the backup that they don’t have right now, because no one has a backup for their transmission. We will become that backup and as the years progress, we will become the primary source for television and eventually radio, to broadcast.”

CEOCFO: Is the satellite industry fighting you on this?
Dr. Becker: “Basically, the satellite industry is not going to be hurt by this. They see for the most part that the broadcaster as being extra revenue and maybe even a nuisance. They don’t see them as a prime income-generating customer. Further, that is really where the television industry has been hurting the most, because ABC, CBS and NBC don’t own their own satellites; they don’t do their own transmission. When see an interview on the street, or at the football game, you will always see a truck, which is a satellite uplink truck. The have to have this and it is an industry that depends on instant communication; our technology takes care of that. They take the server and plug in their camera into it; that server goes into a T1 and now they are connected. It is an incredible new sophistication, a new development, one of those things that people say ‘wow’, it is so simple, why didn’t I think of that.”

CEOCFO: How do you get the industry to adapt your technology?
Dr. Becker: “For ten years we’ve been in R&D and for three of those ten years, we were working directly with and broadcasting outfits such as NBC and the BBC. As they tried and experimented with the technology they found out that they loved it, but we were dealing with technical people and not the decision makers who write the checks. So where are we going to go? For the most part, it is a no-brainer. When the financial guy looks at it and says $50 billion for satellites, $500 million for IP that’s what we call a no-brainer. He knows which way he’s going to go. Therefore, it is a matter of getting out in front of the end user and those Tier 1, Tier 2 and Tier 3 users, who are as ABC and CBS’s Tier 1 regional stations, like a Chicago or an state station would be Tier 2 and Tier 3 becomes Pay-Per-View and specialty channels. There are an awful lot of customers out there for us, who once they get hold of our technology they will love it.”

CEOCFO: What should investors be looking for?
Dr. Becker: “Right now the buzz has started, because it is a brand new technology, a brand new field, and people are still trying to come to grips with how we can do what we are doing. Up until now, when people think of the Internet, it took a long time for them to understand what is Voice Over IP. Initially, Voice Over IP was a guy sitting at his computer, plugged in a microphone and he was sort of able to talk to somebody. Now that has evolved to where you buy a little device that you plug into your wall, plug your telephone into it and you don’t even know whether you are on Voice Over IP, because it has now become ingrained in who we are. Broadcast Over IP will be the same thing; the U.S., consumer will flip on their TV and you won’t know whether what you are watching is coming to you by satellite or by our technology. The ones who will know will be the shareholders of Viacom International Inc. (NYSE: VIA.B) and all of the big companies that own the broadcasts. They all see the difference, because their bottom line is going to grow tremendously. Where we are now is that we have shifted from R&D to sales and marketing. In order for us to be successful in what we are doing, we needed to go public and we have. We need to raise the funds that are required for us to be able to sale and market, and then be able to maintain our product line.”

CEOCFO:  Tell us about your management team.  Do you currently have the right people in place for the next phase for MagicWeb?
Dr. Becker: “Along the way we have encountered a lot of people who come out of industries like the television, the media industry, and those people are now coming onboard to help us go with our sales and marketing. I know the technology and my designers know the technology better than anybody and for us it is so easy to be able to go out and explain what we are doing. Sometimes it does become difficult for the layman to understand. When I talk about Q Band or QC Band or turnaround service that means nothing to the consumer, but the guy who is the technology person at broadcasters; well that means something to him. Once he embraces it, he can go to his boss and say, ‘here is where theses guys are, let’s try it’. It is not a difficult sale and the people that we have in place, I think are the right people for time. We are going to make this into a brand new industry, much like the VOIP became a new industry, BOIP will be a new industry, because right now we are the only ones in this space.”

CEOCFO: That’s a good place to be.
Dr. Becker: “It’s a good place and a bad place. The good thing is that we are the first guys out there, the new kid on the block, but BOIP doesn’t mean anything to anyone, because nobody knows what it is. Now it’s bad, because we are the only guys there and there is no one to compare us with; no one to even compete with. Having no competition however, means that there is also no one else helping to sound the trumpet of BOIP, but it is going to come. It will probably come over the next few years, but right now we own this space and we love it.”

CEOCFO: What is the revenue model; is it licensing or sale of the technology?
Dr. Becker: “Right now, we are really moving along the same revenue model as satellite companies. If you drive past CBS of CNN, you will see what we call a satellite farm, which is a large space filled with satellite dishes. We will do the same sort of thing, but our cluster will be a server. We will go into the broadcasters, hook them up to the servers, the servers are hooked up to the Internet and those Internet connections go to receivers, which are the cable companies. What we will do is simple; we do not believe that we will be selling the equipment, so following what satellite companies have done we will be leasing the equipment. We will maintain the equipment, train the users at both ends on how to use the equipment and have our S.W.A.T teams in place just like the satellite companies do. If something goes down we will be there to repair it, so the model is an ongoing contract with the broadcasters.”

CEOCFO: What is the financial picture like at Magicweb today?
Dr. Becker: “We have been public for a month and in that month we opened at 20 cents and as I checked this morning we were trading at $2.00, which shows me that there is a lot of interest in what we are doing. A little company doesn’t go from 20 cents to $2.00, simply based upon their great idea, and since we have, this shows great support for which we are. We are looking to raise between 5 and $10 million in order to get us through the first stage, which is getting the word out, getting the marketing machine running, talking to the media and getting those first few systems into place at the broadcasters. Further, that is where we are at now.”

CEOCFO: In closing, please address potential investors, why should they be interested and what is most often overlooked about Magicweb?
Dr. Becker: “What they miss is that we are not a dot com, we are not an Internet company, and we are not selling a technology that allows grandma to see her grandson on the Internet. The only thing that we have to do with the Internet is that we happen to travel over the same IP as does. That is it; we have nothing to do beyond that and that is where the confusion is with the company. We get calls all day long from people, investors, reporters, you name it; saying ‘that is great, now can I see an example’. I tell them to go turn on CBS in Los Angeles and there you go. Now they don’t get it and they will then ask us for an example on their computer, but we don’t have anything to do with their computer and that is where people don’t get it. They believe that so much of what is happening today, if it has the word IP, it has to do with the Internet and we don’t. We are strictly a broadcast device, a transmission system for broadcasters and that’s who we are. Broadcast Over IP is a technology that allows broadcasters such as television and radio broadcaster to transmit the signal from where they are to the cable and other distributors, so that it reaches the consumer in their home, on the radio or on the television.”


Any reproduction or further distribution of this article without the express written consent of is prohibited.

“We are strictly a broadcast device, a transmission system for broadcasters and that’s who we are. Broadcast Over IP is a technology that allows broadcasters such as television and radio broadcaster to transmit the signal from where they are to the cable and other distributors, so that it reaches the consumer in their home, on the radio or on the television.” - Dr. Herbert Becker


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