It appears that every customer who doesn’t pay essentially adds...

It appears that every customer who doesn’t pay essentially adds the cost of video production to the total FCC bill. That amount is seemingly booked as an asset, which is deposited in the “to provide future value” library, and depreciated over a number of years. As long as the new customers grow at a faster rate than the unused product depreciates in an arrangement like this then the cash will keep coming in from financing and the balance sheet won’t get overwhelmed with dep expense. But when new customers slow, depreciation quickly rises proportional to the rest of the page and payments on debt become due. A double whammy.

I wonder if this is what is happening. It would be very interesting to find out how the unaccepted videos are being treated in the books. And what proportion of customers don’t accept the product.

IMO; DYOR