What Are the Benefits of a D2C Streaming Video Model?
So I need to see why. Why would you want to cross that bridge and get into that line of business? No one, it’s where a lot of stuff is moving toward. But let’s talk about some of the reasons well, you control the value chain. So you you have only end to end system. You are managing every aspect of that service, from customer acquisition to sign in, to play out to measuring what the audience does. You are in control of every piece of that value chain to your dressing cord cutting. So we know audience moves from traditional to OTT. We know audience goes from no programming package whatsoever. Or maybe someone was on mom and dad to being a new potential target, a new subscriber. And then they got a data service, whether it’s mobile or whether it’s fixed, line their addressable audience so we can market to them. We can get them to sign on to the service and take that service for a certain amount of time, hopefully as long as we can maintain them. But regardless, you’re addressing cord cutting, you’re getting in the middle of that potential hurdle and adapting your business. So that it capitalizes on that new business that’s out there. Next, be agile. So in terms of pricing or promotions, trying to reach an audience with a particular show or at a particular time of year because of types of content, right now, it’s October, so that might be Halloween or type content that people resonate with. But regardless, when you own that, that workflow and you’re in charge of a nimble business like DTC, you can easily add or remove, add or remove price points, add promotions, give people an incentive to try your service for a certain amount of time next economies of scale. So if you’re running a service and you’re fortunate enough to have a piece of content in the library, whether it’s your own or whether you license it, that becomes the next viral sensation. I hesitate to mention squid game, but I mean, it’s one of those. It’s one of those shows that is just defied all logic and rocketed to the top of what people are viewing. Imagine the infrastructure you have to have in place to address the audience that is coming to your service to watch that piece of content really addresses economies of scale. So you’ve got to have the ability for that infrastructure to elastic, expand or contract when the audience may, when that tidal wave may come in pass and you don’t need as much infrastructure, having a flexible Saas driven DTC business enables you to do exactly that next. Reduced cat or customer acquisition costs. That’s what s.a.c. is. Whether you’re offering fluvial binders or color fruit, fruit drink umbrellas or a DTC service. You have customer acquisition costs. IT costs you something to acquire that customer. Whether you’re using paid search, some sort of marketing or advertisement, it cost you something to get that customer into the tent to subscribe to your service when you run that service and again, you own every piece of that proposition. You can ideally look at where you can reduce that gap. And lastly, you’re building a relationship directly with your customer. There is no middle person, middle man, whatever term you use, it’s your brand and your customer. And ultimately you. You maintain that brand, you enhance that brand, you build that brand and ideally retain that customer for as long as it’s beneficial for you and for that viewing.