From my understanding the cost of producing the video is accounted for in the initial costs $400 to get the film crew to the business, then the ongoing subscription is the part, when prepaid, becomes deferred revenue. Therefore the majority of the cost has already been accounted for and the deferred revenue is then for the ongoing services provided, which has been stated on numerous occasions requires minimal additional capital, therefore the statement is correct that a big proportion of deferred revenue converts to profit once the services are provided.
BIG Price at posting:
$3.55 Sentiment: Buy Disclosure: Held
