End of ZIRP might not just kill off the perma-loss long startup model, but also some of the long running loss making divisions.
I was also struck yesterday by news that Disney loses a run rate of $6B annually on streaming with nearly 250M customers.
So they are losing ~$24/customer per year, selling a service at $8/month.
It's interesting how all the competing streaming services popped up around $8/month that forced Netflix to offer lower priced tiers from their $12/15/20 range, but arguably that was actually the natural, profit-making price.
It's not a customer acquisition cost if you continue to lose it every month.
I was also struck yesterday by news that Disney loses a run rate of $6B annually on streaming with nearly 250M customers.
So they are losing ~$24/customer per year, selling a service at $8/month. It's interesting how all the competing streaming services popped up around $8/month that forced Netflix to offer lower priced tiers from their $12/15/20 range, but arguably that was actually the natural, profit-making price.
It's not a customer acquisition cost if you continue to lose it every month.