Is $10 a year per subscriber feasible.
I think it is very achievable, particularly as you add in advertising.
I forget the exact affiliate/carrier fees that TV Guide channel gets off the top of my head, but it is similar to that the Guide gets. So between the Guide and the TV Guide Channel alone you could get $6 per subscriber right there. The horse racing channel gets a lower carrier fee that either of these two channels, but that might also be another $1-$2 per year, per subscriber.
Add on to this advertising from Guides, the TV Guide Channel, the Games Channel (plus any % of the take), and it would seem reasonable to think GMST could indeed get at least $10 per subscriber, per year, and some may call this a modest estimate over the long run.
But as you can see it is mostly a product of distribution (which GMST is succeeding in gaining) and advertising revenues, which GMST is succeeding in gaining on the TV Guide Channel, but still not on the Guides. I think the latter is just a matter of time.
A lot also depends on the TV Guide Magazine biz, as the majority of revenues presently come from that venue. Can GMST stabilize it into a cash cow, and can GMST find advertising synergies. In some respects I think TV Guide magazine is somewhat of an anti-synergy for GMST in that if you look at the Guides, you see a lot of low class, cheezy sort of ads that you would expect to find in the magazine as well. GMST getting that sort of cross-over sale.
I think the Guides need to move to higher quality sponsors.
But to answer your question, yes, that does sound like a very doable target, and I'd hope a moderate aspiration within a few years.
Tinker |
