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Does Avatar represent the future of movies? Maybe not
You don't say "WOAH! Lexus has a big problem- Kia is now making a really cheap car that can get you to work just like the Lexus." So why would you use that same type of reasoning when it comes to online video?
Which is it?
I agree with sarah about chasing unprofitable customers..
Look Fliqz started a trend towards lowball pricing.....and as more competitors follow suit, then we are going to see lower and lower prices which means lower and lower revenues...
$4.95 video hosting anyone? Show me the billion $ from that.
All of these companies have shown adroitness at raising money, I'm not sure that any of them have shown a profit
I have yet to see much in the way of fliqz videos on any of those sites, they may have their toe in the water but the big lifting is handled by the likes of brightcove.
Some contests on those sites have used fliqz...etc...pilot type stuff...
At the end of the day, who controls the profit margin?
The companies that supply the bandwidth -- which is not fliqz -- fliqz buys the bandwidth.
As prices fall to zero, the bandwidth suppliers (bitgravity) will hold all the cards...
And now that youtube has high quality streams, what is to prevent youtube from rubbing out most of the competitors in the video market?
Not much, other than so far the lack of inclincation. Trust me, to the extent the revenues develop, the inclination at youtube will develop as well...!
Thomas
Additionally there is no barrier to entry for other entrants to the market, be it kaltura or anyone else to get into this "white label video" market.
And finally you point out that "none of them are profitable" and you allege that fliqz is taking in $2800/customer.
Ok, so adding that together means they are losing money at that $2800/customer...(Since none of them are profitable, right?)
S o, the more customers they have (growth), the more money they will lose, and the more financing they will need.
Losing money on every customer and trying to make up for it in volume sounds like the pets.com story.
Who knows what the actual financials are but the track record is these video customers have an enormous appetite for VC money; if the business was wildly profitable, that wouldn't be the case.
I don't think that unprofitable companies have much intrinsic value at the end of the day...
Show me the profits, and I'll be a believer.
"Fliqz’s model revolves around its simplicity. You go to its site, select a subscription level that reflects the size of your audience, pay for it and then add a few lines of code. Its substantial ease of use and quick deployment has enabled it to bring in around 17,000 customers, most of whom are using the ad-supported free version that grants them 500 streams a month."
Now...exactly how hard is it win business this way? Oh...and what did you say the margin is here? Shaking in my boots..........
And click on "Rankings" you'll see they've gone from ~2,000 to ~50,000 over the past few months.
That means they've lost 90% of their page views... yet this is a growth phase?
Yeah, that's why we all believe what CEO's say
Jenny
http://www.uggboots365.co.uk