From RB, this is a pretty good synopsis of the sub number controversy.
MM
By: profdh53
06 Oct 2004, 11:48 AM EDT
Msg. 96273 of 96279
(This msg. is a reply to 96271 by ronnie5md_1.)
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subscriber's numbers - or - who cares?
Let's look at this from two different points of view
( other than your OWN)!!
Case 1 - Wall St. hears that YOU have a company that rents games and videos and that YOU want to sell shares on Wall Street. They must find a suitable trading range for YOU.
They will ask you: "How much PROFIT are you making"?
You answer: "We have 20,000 subs - up 100% from last year!"
They will then ask: " Sure, but how much PROFIT did you make last year and this year?"
You answer: "I just told you, our subs are increasing like MAD!"
They answer: "Talk to us about your BOTTOM LINE. How much PROFIT do all these mad subs bring in?"
The point is - they don't give a rat's ### about your sub numbers - they have to turn those numbers into $$$$$ - or else their boss will fire them! Subs means NOTHING. Profits means EVERYTHING.
Case 2: You are the CEO - you find out that you presently have 20,000 subs and say: "Why don't we make a press release?" What you don't know - between now and the time your press release comes out, 500 subs have cancelled. Your investors then want to know "Why did you say 20,000 when it was only 19,500?"
Some investors think maybe they should SUE you.
Your Financial advisor says: "I told you so........."
A PR about subs doesn't help you. A PR about Profit - - -
KABOOM!!!
I want to read the PR about Profit, thank you very much.
Best to all,
Prof
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