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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (51946)	3/15/1999 10:00:00 AM
From: Eggolas Moria	Respond to of 132070

Hmmm . . . TSCM S-1 filed: Net revenues for year-end 1998 were $4,623,000. Gross profit was $668,000. Loss from operations was $16,041,000. Product development was $2.35 million. Sales and marketing expenses were $9.2 million. General and administrative was $5.16 million. (amounts rounded and from the S-1 filed on 2/23/99) If you look at the exhibits to the S-1 (read the AOL agreement), you will begin to understand. But the S-1 states quite nicely: "We depend on establishing and maintaining subscription distribution relationships with online financial services firms and content syndication relationships with high-traffic web sites for a significant portion of our subscriber base and traffic. There is intense competition for relationships with these firms and placement on these sites, and we may have to pay significant fees to establish additional content syndication relationships or maintain existing relationships in the future." As to providing free content, the S-1 states that "we presently offer a portion of our content for free. In the future we intend to increase the free portion of our content to increase traffic. However, this change may reduce the number of our new or renewing subscribers . . .." Reliance on advertisers: In 1988, top advertiser accounted for 40% of ad revs and the top 5 accounted for about 67%. And so on. Read the risk factors section. They give an excellent overview of the challenges and possible solution sets to establishing a thriving on-line business.