There are already competitors, the problem is cost and quality. Up to now if you wanted the quality BIG provides then you needed to pay north of $10k, with BIG you can do it for 1/10th of this. It is this that distinguishes BIG from the rest. It also looks like some bigger companies that used to pay a lot more are moving to BIG for the advantages they provide. If you wanted 200k customers in a year you would need (200,000/4/365=137 film crews working 7 days a week doing 4 customers a day) I think this is what is holding BIG back. Also I think BIG have patented film development software that reduces production cost per video to $2 (not sure what length of video or what is incorporated into this). The chances of BIG becoming the next trip advisor or bigger is small but possible, the chances of BIG being able to quadruple their revenues within a year are quite high. To say it is not a great investment because the chances of them taking over the world are low is like telling anyone who starts their own business it is a waste of time because the vast majority will go bust.
Dream big but keep an eye on the fundamentals, if they start stalling at quarterly revenues of $100M I think I will still be very happy.
BIG Price at posting:
$1.74 Sentiment: Buy Disclosure: Held
