Some customers will want DSNY to transcode and store the videos on their server, while the biggies will want complete control (transcoding and storing).
I am sure they are factoring in the recurring savings a customer gets when they use G2.
As far as someone coming out with a better product..maybe down the road but you have to appreciate what DSNY is accomplishing with G2 to realize what a difficult task that would be.
This is what the Clarus Securities report had to say about that:
"We are not applying a formal rating or price target to Destiny Media at this time as the Company is still in the process of finalizing the revenue model for its new product Clipstream."
"CLIPSTREAM REVENUE MODEL IS STILL BEING FINE TUNED
At this point Management has not finalized the pricing model for Clipstream but it has provided some insight into how pricing will work for various customers. We believe that large content creators will be able to pay a monthly fee for the software and can convert as many files as they want to use Clipstream. These negotiated agreements will depend on the scale of the customer and how many videos they publish a year. Smaller web content creators or advertisers may pay on a per video basis. We believe management is in discussions with potential large content creators that could lead to multi-million dollar annual licensing revenue in the next six months."
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