This may have been covered before or i may be wrong in analysis here but what happens in this scenario?
customer A wants a free vid
Big receives its 35% capital to make the vid
Customer A declines
Big gets customer B to replace on that same 35%
Customer B declines
ect ect all the way down to say Customer M, does this mean BIG could possibly lose money on making the videos or will the 41% that is then received more than cover costs?
Also i dont think BIG will show default rates if they have to ever pay the 24% cancellation fee because if they cant find a SME to replace then this will create a domino effect.
eg. If 120 days have passed and BIG cant cover that SME then this will happen
day 121 first fee
day 125 next '120 day lapses'
day 126 next '120 day lapses'
day 128 SME is replaced
day 129 SME is replaced
day 130 they cant replace the 6th deal after initial lapse so next '120 day deal lapses'
hence once the first cancellation fee is payed that means there will be a log jam of business's that BIG cant replace.....we are safe until that day happens however with the amount of SMEs in Australia the prospect of this initially happening is unlikely, as time goes on though the business model will need to restructure their method of signing up SMEs to BRTV. Like they have already stated they will probably change this in future.
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