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Re: DawgTrading post# 3770

Friday, 03/22/2019 1:24:12 PM

Friday, March 22, 2019 1:24:12 PM

Post# of 5495
I deal in livestreaming and traditional broadcast, so not 100% on these digital hosted platforms. I would assume it to be just like having an app developed. There will be an initial fee to make the channel, monthly maintenance fees to keep it up to date with Roku, probably some kind of monthly fee to store and manage the film library when things get added or removed. No idea on costs since it's a 3rd party company, could be a couple hundred a month or way higher if they think they have a big fish on the line.

As far as revenue, from what they describe, it'll again be like most free apps out there. They'll probably be set up with one of these companies that generates ads within the app, then later they'll add an option to pay to make them go away. Revenue will be determined by ad views and engagement. Fractions of a penny per view, and that goes up if they click the ad or something (if that's possible on Roku apps).

So, with that model, you have to ask, is the content they'll be offering going to generate thousands and thousands of ad views or subs to generate any kind of real revenue stream? I doubt it. At best it seems like a break even proposition. I would not expect thousands of dollars to be generated from this, though. But, I would be more than happy to be wrong.