He stressed on stern that he does 50k downloads... not 50k uniques...
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100,000 downloads/day x 141 MB/download = 14,100 GB/day!
if only 0.1% buy the video at $50 then
100,000 downloads/day x $50 x .001 = $5,000/day! = $150,000/month = 1,825,000/year
Not bad for just one video which also produces recurring income.
What do you think the bandwidth costs? $0.20/GB in bulk like that?
So costs are 14,100 GB/day x $0.20/GB = $2,820/day
Net return = $5000/day - $2,820/day = $2,180/day = $65,400/month = $765,700/year
Still not bad for just one video.
Given that data, minimun conversion rate needs to be 0.0564%, or 1 sale per 1,773 downloads, to break even. Of course, there's still web design, advertising, servers, etc., to figure in, so the conversion should realistically be much better than that to break even.
Originally posted by ModelPerfect 100,000 downloads/day x 141 MB/download = 14,100 GB/day!
if only 0.1% buy the video at $50 then
100,000 downloads/day x $50 x .001 = $5,000/day! = $150,000/month = 1,825,000/year
Not bad for just one video which also produces recurring income.
.1% = 1:1000 conversion ratio. I am sure the average is much higher then 1 sale every 1000 downloads.
It's interesting what they're doing. Allowing the download for free but requiring people to pay to get around the DRM (which allows only 5 viewings in 5 days, too -- repeat payments $$$). But I wonder how many people are going to download it and never pay.
Given that data, minimun conversion rate needs to be 0.0564%, or 1 sale per 1,773 downloads, to break even. Of course, there's still web design, advertising, servers, etc., to figure in, so the conversion should realistically be much better than that to break even. [/B]
They just got a shitload of free advertising on Stern this morning. Smart.
Originally posted by BIF It's interesting what they're doing. Allowing the download for free but requiring people to pay to get around the DRM (which allows only 5 viewings in 5 days, too -- repeat payments $$$). But I wonder how many people are going to download it and never pay.
Yeah...once they realize moolah is involved, plunk, there it goes in the recycle bin...good question though. Too many variables to figure this one out.
Originally posted by ModelPerfect 100,000 downloads/day x 141 MB/download = 14,100 GB/day!
if only 0.1% buy the video at $50 then
100,000 downloads/day x $50 x .001 = $5,000/day! = $150,000/month = 1,825,000/year
Not bad for just one video which also produces recurring income.
What do you think the bandwidth costs? $0.20/GB in bulk like that?
So costs are 14,100 GB/day x $0.20/GB = $2,820/day
Net return = $5000/day - $2,820/day = $2,180/day = $65,400/month = $765,700/year
Still not bad for just one video.
Given that data, minimun conversion rate needs to be 0.0564%, or 1 sale per 1,773 downloads, to break even. Of course, there's still web design, advertising, servers, etc., to figure in, so the conversion should realistically be much better than that to break even.
Originally posted by ModelPerfect 100,000 downloads/day x 141 MB/download = 14,100 GB/day!
if only 0.1% buy the video at $50 then
100,000 downloads/day x $50 x .001 = $5,000/day! = $150,000/month = 1,825,000/year
Not bad for just one video which also produces recurring income.
What do you think the bandwidth costs? $0.20/GB in bulk like that?
So costs are 14,100 GB/day x $0.20/GB = $2,820/day
Net return = $5000/day - $2,820/day = $2,180/day = $65,400/month = $765,700/year
Still not bad for just one video.
Given that data, minimun conversion rate needs to be 0.0564%, or 1 sale per 1,773 downloads, to break even. Of course, there's still web design, advertising, servers, etc., to figure in, so the conversion should realistically be much better than that to break even.
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