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Re: Mar-Key post# 109081

Thursday, 03/09/2006 12:22:30 PM

Thursday, March 09, 2006 12:22:30 PM

Post# of 286509
Reality check. GZFX is a temporary cash cow for Circuit City until Video On Demand takes off. They have the floor space, so why not. And the deal does not cost CC anything.

Well, the delay has been because GZFX has not been able to service the accounts well. And the DVD's have delays in shipping. Customers have complained. All trying to be sorted through, imo.

Read all of the articles. DVD's are phasing out. And 6 million in cash does not even dent the billions needed to lead in VOD.

The Circuit City business model will NOT acquire or fund GZFX in any way. Legally they want no part of a separate entity. This has been confirmed. They want GZFX simply for the cash per sub.

But the rollout will be slow, so GZFX needs to increase the A/S, imho.

So GZFX is on its own for financing and VOD. And they are not going to be a player in VOD.

Circuit City will go VOD by themselves or with another company.

The longer GZFX takes, the closer we get to VOD for games, movies, etc.

In fact, spoke with a publisher yesterday. He is in shambles trying to figure out how to make money. His DVD sales have fallen 32% since last year.

The times are changing. Circuit City knows this. But in no way will they EVER fund GZFX.

Unknown_factor, the O/S are much lower with the companies you mention. Makes a huge difference. Compare apples to apples.