Originally posted by Tivolicious
I understand what you are trying to say.
You know, I started to write up a response to your response and stopped.
It's very obvious to me that;
A. You and I are pretty much the only two still involved in this conversation, and if you want, we can continue this offline in some manner. But this sub-text really isn't serving any usefulness to the others in this thread. And as such, I'm willing to let it die and agree that we disagree...and as each post brings us closer to Godwin's law, I'd rather not tempt fate.
- and -
B. We have disperate ideas on how to businesses should be run and aren't likely to change each other's views without thomes of text. So, you run your business your way, I'll run my business my way. You bank heavily on the future, I play the future short. But I'm willing to bet here that neither of us is running a business of any size.....
I do want to bring up one final point though:
Your banking on future earnings is really aggressive.
If expenses grow faster than revenues, earnings will shrink. For a company that's growing rapidly, redirecting money to stimulate growth may make sense. But you're asserting that profits from the growth will be reflected in future earnings as revenues and expenses stabilize.
I have a few of issues with that. Growth in the television market is hardly a rapid or massive, there's a fairly finite amount of customers (with a slow growth rate of people moving in to the area), and they have thousands of viewing alternatives. You're also dealing with a finite market place. With out market expansion, you're not going to see a significant or sustainable growth in market share.
You've stated yourself previously that it's "content over flash". Well, if the content isn't there, any intial spike you may in this business will disspate in time. And again, you're not getting into this market first, there are other competitors coming with you. The same ones you have today, and there are still all those other alternatives.
Advertising revenue isn't likely to jump any massive amount now or in the future as it follows the ratings. It's very cyclical. And here again, after an initial spike, you're back to previous levels.
And In 3+ years, they will do nothing more than a lateral shift of their existing customer base from analog to digital, unless you're adding viewers from somewhere outside the existing market place, there's not really a massive potential for growth there.
.......I really am done now. Fire away.