the importance of scale, page-5

djl,

Interesting post.

"If the company can continue to deliver 10% growth per quarter in total customer numbers, it will quickly reach sustainable scale - say 200,000 plus. Yes the 10% includes triallists, but this to me is the best lead indictator of growth. Even 4% growth per quarter in paying customers would be a solid result over 12 months."

However did you actually do the calculations at 10% or 4% and how long it would take the company at those rates to reach 200,000 plus.

From a subscriber base of 100,000

At 10% it will take 8 quarters (two years) to reach 214,358 subs.

At 4% it will take 18 quarters (six years) to reach 202,580 subs

Now I'm not sure on your expectations as an investor, but those numbers are neither quick or a solid result, especially at 4% growth per quarter.

Also at 4% over the next 4 quarters would only result in subs of 116,985 given the current subscriber base is close to 100,000

That's still basically on par with subscriber numbers as they were MAR-12


"And then when QFX management have confidence in the product offer and launch a stand alone streaming deal at say $9.99.... The upside will be massive!"

Only if they have content to back it up. Currently QFX has an extremely small libray of content for streaming play of mostly dated movie and tv titles.

It will be interesting to see how much QFX spend on content and how much is actually added to Streaming Play over this quarter.

My last count on Streaming Play content from QFX website on 17th Jan was.

Movies 529

TV 184




Kat..