Quote:
Originally Posted by signupdamnit
I found this on the Wikipedia article for Manwin:
In another thread I tried to figure it up.
100 million video views a day
$3 cpm
$300,000 a day or $110 million a year
That's not a lot considering how much traffic they are pulling. So the "low margin" statement is probably dead on if the numbers are anywhere near this. It's astounding to think that all those tubes that size only do that much money when say in comparison CCBill recently stated that they process over 1 billion in annual transactions. I was reading another article yesterday where CBS I believe spoke of a trend where advertising dollars for online companies tend to be peanuts in comparison to the subscription model. Interesting to consider that as applied to our industry. |
Definitely agree with you on the low margin part.
Have to divide one more time, if I'm not mistaken. There is the number for how many views it takes to get a click. But then you need to factor in how many clicks it takes to get a purchase. The more precise the math is, the better a company can do with low margins. This business used to be sufficiently high margin that the math was not necessary to do well.