In my opinion I believe I have found the reason why the amount...

In my opinion I believe I have found the reason why the amount of videos BIG are uploading has significantly dropped recently.

BIG likes to report in revenue (in dollars) and not in users. It likes to say how much money is flowing through the company rather than how much activity or users there are on the platform.

It was hard for me to find actual subscriber numbers which are hidden away in the reports. All you see is just dollar signs $$$ everywhere and how much money there is. When you actually look at how many people are joining the platform as a subscriber it doesn't look all that impressive. In fact growth looks very soft. I've compiled it here for easy reference:





Also, if you look closely, they report churn rates in dollar values, and not in users. So they just say how much revenue has changed. So in-effect, lots of churn could be happening but is offset as long as a small proportion of users spend alot more, thus making up the differential.

There's also no break down of the subscribers. The ARPU of each user is $7.4k, which is very high. How many "Ma and Pa" businesses are there vs Big Blue Chip companies? Is there just a handful of high users spending alot and thus pushing up the average?

Why does all this matter?

As per my illustration above in a previous post. It reinforces the idea that 90% of the income could be coming from as little as 10% of the users.

When you read things like this it begins to all make sense...



What they are doing is just focusing on the very high end customers and are basically just abandoning everyone else.

This is why the videos uploads might be dropping. Why upload thousands of videos that are earning the company virtually nothing when you can just focus on uploading a view high earners and make all the money that way.

Again, there's nothing really wrong with this method, it's just understanding the full picture and not just relying on a bottom line dollar figure pulled out of no where.

Growth is very impressive in my opinion. You have a very small number of large businesses that seem to be benefiting from the platform and generating all the revenue. It's a very high risk revenue model and can easily be disrupted. If they loose a handful of top earners the numbers could be drastically different.