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Technology Risks, page-49

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thermocouple

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08/02/17

11:52

Post #: 22452488
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Originally posted by taincrow ↑

I have been away on business and have not been on Hot Copper alot since my last post.
The Hollywood big 7 studios run a content pricing regime situational to the market they are operating in.

For instance in Australia you might pay the studio $3 per title as a high median income nation as the consumer will pay for it. In Indonesia the studio may charge $1 per title as thats the maximum they can get operators to pay as their consumer base will only pay a third of what we could pay, as they are a third world company.

The studios attitude is that any income for a digital product is profit as they typically recoup their investment in its production in 6 months to a year due to global distribution and the number of sales that can represent.

TV2U will get the client to pay for that catalogue and TV2U will typically underwrite a minimum guarantee of views per month to the studio, which they then offset through insurance through Gallaghers or one those brokers who stand in the market to allow operators to insure against risk.

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Makes perfect sense thanks for the quality information!

TV2 Price at posting: 0.8¢ Sentiment: Buy Disclosure: Held
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