the importance of scale

There has been so much talk around the importance of quickly getting to cash flow positive and customer receipts not meeting expectations. To me this is like putting the horse before the cart. The one thing this company needs to succeed is scale - Netflix in the US proves this point. The requirement for scale is a given and won't change.

Metrics like ARPU and split between subscription customers and PPV are less relevant at this point as the market is still Immature and price points have yet to settle and product design will continue to change. Management will need to continue to pull product and price levers to adapt to changing market behaviour, competition and demand.

It's all about getting as many Australians into using streaming products ASAP and building scale. It doesnt matter so much how they consume the service or how much they are paying at this stage. Database upswell and cross sell can happen later.

If the company can continue to deliver 10% growth per quarter in total customer numbers, it will quickly reach sustainable scale - say 200,000 plus. Yes the 10% includes triallists, but this to me is the best lead indictator of growth. Even 4% growth per quarter in paying customers would be a solid result over 12 months.

If there is enough cash in bank to last another 4 quarters and keep growing at these rates, they will be well on there way to establish the scale required.

If only the market were more patient and look longer term. Personally, I'd be quite comfortable putting my hand in the pocket should they need to raise more funds for marketing and content investment in 6 - 12 months time.... On the condition that 3-4 consecutive quarter of customer growth could be demonstrated.

I think we need to almost consider this a new company since the business model shifted to streaming. I don't think much can be archived discussing the failures, lack of profitability and regular cap raisings prior to this point as it was a completely different kettle of fish.