My concerns are grave for OTT services already, the market is saturated. For example Netflix is now available to me in Australia for $7.99 per month, reduced from $14.99 per month (only 3 or 4 moths ago). In TV2s target markets you would imagine that the pricing would be between 1/4 and a 1/2 of what can be charged in Aus.
So at a generous 1/3 as a rough guesstimate I would say it could be charged at just under $3 per month, which I assume the content provider wants half, and then tv2 splits the rest with divan. If my calcs are correct that leaves about $9 per annum per customer to tv2, "IF" they stay signed up for the entire 12 months. Again my guesstimate of about a 25% conversion of existing Divan customers is a generous 1 million subscribers. So you're thinking now ok about $9mil revenue is not too bad from just one deal, but here's the big but.....
OTT video services do not have 12 month or 24 month lockin contracts, and being a consumer like myself after a couple of months on netflix, watched all the new releases etc etc, I switch to Stan and then to Presto and so on.
Meaning I might actually be signed up to 1 provider for 3 or 4 moths per year, while not everyone uses OTT services the way I do, I know many do. So generously I would think that Divan Hollywood content would be at best around $4mil total revenue per annum. All of course IMO and clearly you can see the inexact nature of my calculations, but I do think they are fair.
Skorz
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