01-06-2017, 04:41 AM
How much will they have to spend on development and marketing? Perhaps less than one might fear:
- Clipstream with their propretary codec was developed, until they couldn't improve it enough, that has surely provided a long learning curve for the present iteration with the new codec (HVEC), and it also suggests that there is an end to such process (as there was with the old codec). We think it's likely this is mostly done. Perhaps another three, or maybe even six months in trying to enlist the GPU.
- If it works well enough to sell, there will be iterations with different features for different verticals, but they will have growing Clipstream earnings as well.
- The hosting platform is also basically there already. Yes, it can be improved further, but most of it is done.
- There is likely further financial improvement coming from PlayMPE through rising revenues, cost falling further (there are still one or two Destiny server centers that could be closed) and the increased usability opening its use for new categories of users.
- Remember, PlayMPE is highly automated, therefore high margin stuff, additional revenues go disproportionally to the bottom line.
- They already have done a considerable amount of marketing and they could benefit from some of their existing relationships in the music industry to offer something attractive to them (high audio quality video streaming, which doesn't depend on Clipstream).
The company has a history of frugality, we don't see a compelling reason yet for that to change. Development of Clipstream and the hosting platform has been paid from PlayMPE revenues until now.