Possible, but I'm not sure I've explained myself c
Post# of 96891
Posted On: 06/22/2015 6:36:58 PM
Re: PowerPuncher #20707
Possible, but I'm not sure I've explained myself clearly - subscription is a very competitive, very expensive pond to fish in. Subscription rights contracts do not share revenue with the rights holder (unlike transactional). Subscription rights are effectively "bought in full" for a period of time.
So you have to think about the short to mid term timeline here, especially as NTEK fights to build appreciation for the stock price. Subscriber-based services like Netflix (or even HBO) lost millions upon millions for years. The threshold or level for those services to even sniff break even meant an ongoing, (pay every month) consumer base in the tens of millions. And the only way to build that base was to spend significant cash, losing millions quarter after quarter as the base slowly expanded.
I'm not sure the 4K market in terms of total penetration of sets and devices is quite ready to support a sub service. Certainly over time it will be. I'd be keen to get my hands on Netflix recent numbers to expand upon this, as they effectively creative a sub-sub platform with the additional few bucks they charge their existing customers for the little 4K they have.
And if you figure Netflix ran numbers and said 2 bucks additional each month would support what they offer in 4K (which is what, like 30 titles) - then that gives you some idea of just how much it would cost monthly to garner subscription rights to the hundreds and hundreds of hours NTEK is currently holding.
So while it might be in the long range plan, I hope they don't lose focus on the current business model. I believe it's the correct way to go at this early stage of 4K.
So you have to think about the short to mid term timeline here, especially as NTEK fights to build appreciation for the stock price. Subscriber-based services like Netflix (or even HBO) lost millions upon millions for years. The threshold or level for those services to even sniff break even meant an ongoing, (pay every month) consumer base in the tens of millions. And the only way to build that base was to spend significant cash, losing millions quarter after quarter as the base slowly expanded.
I'm not sure the 4K market in terms of total penetration of sets and devices is quite ready to support a sub service. Certainly over time it will be. I'd be keen to get my hands on Netflix recent numbers to expand upon this, as they effectively creative a sub-sub platform with the additional few bucks they charge their existing customers for the little 4K they have.
And if you figure Netflix ran numbers and said 2 bucks additional each month would support what they offer in 4K (which is what, like 30 titles) - then that gives you some idea of just how much it would cost monthly to garner subscription rights to the hundreds and hundreds of hours NTEK is currently holding.
So while it might be in the long range plan, I hope they don't lose focus on the current business model. I believe it's the correct way to go at this early stage of 4K.
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