How can they fund the Gnf Enterainment Network if they focus primarily on the rental-by-mail aspect of the business?
Answer: Much more dilution...something nobody wants.
So it's a "juggling act". If GnF begins to bring in "da cash", then they might accelerate sub growth...or, they might even decide to scrap the rental-by-mail biz...who knows. If the GnF goes nowhere, "then" back to the rentals...LOL..YIKES!
What Agent said. Also, We have 19K subs at 12/31/06 with capacity for 150K subs. They need to grow in a controlled manner to say 120K or 130K subs before increasing capacity. Diluting to gorw now is not smart.
IMO another point about your post. We don't need anymore than the 9 and 10th DC planned. I am certain that people are pleased with a 2-3 day turnaround resulting from the USPS scanning of our returns which are immediately checked in and a new one sent while the old one is on it's way back to the DC. I doubt NF had that service available when they started and they've became top heavy running expensive DCs they really don't need. How would you make anything if turning around 15 dvds in a month with 2 day turn-around at a mailing cost alone of $11.10?
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