Maverick, Cossack Carl & Hiba (aka AFU friends), can you please...

Maverick, Cossack Carl & Hiba (aka AFU friends), can you please try to invalidate the statements above? Please. Like really - do it!

I want to see your understanding of monetisation principles of a platform based business model. Remember me saying I was happy even if they spent another 15mil and got 5mil users? This analysis above is exactly why. Interesting I stumbled over spotify many years ago - Do you know what the business was - Basically a buggy app with little content. Then they went on to gain user mass and when they got the users, they formed partnerships, acquired DRMs, partnerships with record labels. So the chicken and egg game continued, content vs users (you can’t have one without the other). This is exactly why the “organic” growth is so important – It has taken Spotify 10 years to get to where they are today (60mil – paying subscribers) and looking to list soon. Had they canned the project when they didn’t get much response in 2008 – do you think the model would still have been here?

The reality is, as much as you hate to admit it, MSM concept doesn’t exist elsewhere – there is NO other Megastar – this is an incredible opportunity for the company to strategically go “blue ocean” hence they are taking about other products. You will soon see them launching some of those. Spending 15million, 20 million is nothing when you think that this very own business model can fundamentally shadow every other freemium entertainment business model out there when you have content and users coming in because people WILL spend many multiples of times using the app when there are incredible talents showcasing the talent. India is strategically great – I don’t know how much you have researched but Indians go crazy over a million dollars. Do you know how many people Audition for Indian Idols? It is mind boggling…

500k users, a platform in place, partnership in progress – 18m is peanuts for this. Challenging and overcoming the status quo takes time – it takes money too. The only down side is the dilution due to the cap raises but honestly who cares about dilution as long as your capital can be many multiples. This is the business of the future, and risk taking investors spend money on these business models where they can afford to lose 20-50% capital for 10-20x returns.