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Originally posted by Mac the Knife:
Peg and Bud,

It was erroneously stated on another message board about the earnings report being released this Sunday. There will not be one Sunday so pretend you never heard it. Mac

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hey i just posted that because we were on the topic. not exactly a whole lot of informational posts going on currently so i wrote that. just agreeing with his thoughts was all. right now.....honestly i don't care when the report comes out. im holding long and nothing right now will change that. unless they tell me their distribution centers burned down, then i suppose things might change.

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Originally posted by m_h13021:
Oh my god when did their distribution center burn down. This is terrible, I wonder if we will get a Press release? -

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Originally posted by r.douglas:
i agree....i had to choose between buying a dior bag for my girlfriend for val-day and getting more gzfx. I got 30k more gzfx. she'll thank me in the long run.hahaaaa

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Originally posted by m_h13021:
I informed all the other boards and have a email in to John Fleming, just waiting for a response. I hope this does not drop the PPS? -

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YO M_H!..YOU HAVE BEEN USING SARCASM ON BOTH THE BOARDS(THIS ONE AND DINCING WITH BULLS)..TAKE IT EASY..i KNOW THAT IT'S FRUSTRATING TO HEAR RUMOURS LEFT AND RIGHT..BUT YA GOTTA LIVE AND LET LIVE ON THESE MATTERS...OK BUDDY....TAKE CARE.

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"if you keep doin' what you doin' you'll keep gettin' what you gettin'!!!

On the other hand we do have the PPM's total to take into account. Also, to me, there is something else going on with funding. To run a rental business and have 4,000 movie titles you would need a boatload of money and I don't care how many PPM $ you come up with, I don't think it would be enough.
Think about it, how many titles for each movie would you have to have to be able to rent them out, especially the new releases. I have no I idea, but maybe an average of 8 per title, more for the new releases and less for old. Take 8, times it by 4,000 = 32,000. Now that is a TON of movies.

IMO something else is in the works, maybe a partnership, deal with movie studio..... something. You don't just wave your magic wand and have 4,000 movies TITLES pop out of thin air. With plans to have 12,000 to compete with Netflix. My nose is smelling something.

This all speculation on my part, but makes sense to me.

Cheers
Mike

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Originally posted by jr:
any ideas on what we can expect from the next earnings report and how it will affect the pps? im not expecting anything great like a huge increase in subs or anything yet, its too early in the game. if anything, the expenses that go along with starting a game/dvd rental company might outweigh any profits which is only to be expected at this point for a company just starting out, and im sure anyone invested in this company for the longterm realizes that.. i just hope new investors dont abandon ship if gzfx isn't showing substantial profits yet. thoughts/comments?

[This message has been edited by jr (edited February 13, 2004).]

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quote:

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Originally posted by scorpionet67:
[QUOTE]Originally posted by r.douglas:
[b]i agree....i had to choose between buying a dior bag for my girlfriend for val-day and getting more gzfx. I got 30k more gzfx. she'll thank me in the long run.hahaaaa

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[/B][/QUOTE]

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Originally posted by scorpionet67:
YO M_H!..YOU HAVE BEEN USING SARCASM ON BOTH THE BOARDS(THIS ONE AND DINCING WITH BULLS)..TAKE IT EASY..i KNOW THAT IT'S FRUSTRATING TO HEAR RUMOURS LEFT AND RIGHT..BUT YA GOTTA LIVE AND LET LIVE ON THIS ONE..OK BUDDY....TAKE CARE.

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Originally posted by m_h13021:
Hmmm, I am speechless. Sarcasm is my savior. Curious as to what post offended you on Dancing with Bulls? - Marty

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it's over..back to GZFX :-)

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Originally posted by scorpionet67:
it's over..back to GZFX :-)

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To use the above example of 32,000 individual copies, if it's $100 per copy that comes out to $3,200,000. However I strongly suspect that business isn't done that way anymore. If it's $10 per disc then we get $320,000 which is a lot more reasonable.

Personally I never thought of the actual cost of the titles, physically, to be too significant.

Thoughts?

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Originally posted by Wooter:
Pretty much agree with this statement. Not sure what to expect from from earnings.

On the other hand we do have the PPM's total to take into account. Also, to me, there is something else going on with funding. To run a rental business and have 4,000 movie titles you would need a boatload of money and I don't care how many PPM $ you come up with, I don't think it would be enough.
Think about it, how many titles for each movie would you have to have to be able to rent them out, especially the new releases. I have no I idea, but maybe an average of 8 per title, more for the new releases and less for old. Take 8, times it by 4,000 = 32,000. Now that is a TON of movies.

IMO something else is in the works, maybe a partnership, deal with movie studio..... something. You don't just wave your magic wand and have 4,000 movies TITLES pop out of thin air. With plans to have 12,000 to compete with Netflix. My nose is smelling something.

This all speculation on my part, but makes sense to me.

Cheers
Mike

[This message has been edited by Wooter (edited February 13, 2004).]

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You said: "Personally I never thought of the actual cost of the titles, physically, to be too significant."

I am not 100% sure what you meant by this, can you please explain?

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Originally posted by sopclod:
This raises a question that I have been wondering about. I know that in the heyday of VHS that rental places paid a lot more per tape than we paid when they came to store shelves (like almost $100). I also know that if GameznFlix does things like Netflix, when you get a movie you get just the disc. So what I'm wondering is how much they pay per copy of each title.

To use the above example of 32,000 individual copies, if it's $100 per copy that comes out to $3,200,000. However I strongly suspect that business isn't done that way anymore. If it's $10 per disc then we get $320,000 which is a lot more reasonable.

Personally I never thought of the actual cost of the titles, physically, to be too significant.

Thoughts?

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Originally posted by Wooter:
I *THINK* I heard that Netflix has some kind of deal worked out where they get discounted movies but pay a percentage royalty back to the movie house or producer or whatever you call it.
I would think GnF would have to do something similar to come up with that amount of titles.

You said: "Personally I never thought of the actual cost of the titles, physically, to be too significant."

I am not 100% sure what you meant by this, can you please explain?

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I just mean that it's not a huge outlay of money to aquire some DVDs. No they're not free, but compared to other expenses involved with running the business, and getting it off the ground, it is relatively trivial. Of course this depends a lot on how much they actually pay for titles.

RENT ALL THE VIDEO GAMES YOU WANT, KEEP THEM AS LONG AS YOU WANT, NO LATE FEES.

I went in, and in the games section big sign:

$14.95 A MONTH ONE GAME AND $19.95 A MONTH TWO GAMES, KEEP AS LONG AS YOU WANT, NO LATE FEES EVER!

I asked the kid behind the counter about it and he told me that this store (Albany, Oregon) was one of a few test stores to see how well it would work. If it works out for them, they will expand to ALL stores, nationwide.

One thing that someone mentioned a while back is that Netflix thinks there is still a lot of room for the online rental business to grow. I think that traditional B&M rental stores are, for the most part, competition; i.e. they are "taking" our business. I think there is a little more business total, but B&M stores will start shrinking as this new online model takes more and more of their business.

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Originally posted by sopclod:
Interesting.

One thing that someone mentioned a while back is that Netflix thinks there is still a lot of room for the online rental business to grow. I think that traditional B&M rental stores are, for the most part, competition; i.e. they are "taking" our business. I think there is a little more business total, but B&M stores will start shrinking as this new online model takes more and more of their business.

Now the only question is, who will prosper and who will fail. If GameznFlix can get its ass in gear and get a games and movies rental program going, I think the sky's the limit.

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Regards,
Mike

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Originally posted by j160e:
Hi folks, I thought I'd give my 2 shares worth, I mean 2 cents worth on the dvd topic. Yes, Netflix has revenue sharing agreements with more than 50 studios and distributors to obtain titles for lower initial costs in exchange for sharing of subscription revenues for a defined period of time, generally 1 year. This allows for the acquisition of more copies of each title. Someone said something of 8 copies of each title but I would think there would have to be a lot more than that. Netflix has 15,000 titles on over 5.1 million dvd's at ~25 distribution centers. I realize there must be more copies of some titles than others but just a simple average of the above says 340 copies per title which would then reduce to maybe 14 copies per dc. My guess is if we will open with 4000 titles as we've heard, then how about at least 400,000 dvd's. That would be 50 copies per dc at present. Purely speculation on my part. I guess we will find out soon enough.

j160e

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The Company acquires DVDs from studios and distributors either via direct purchase or subject to revenue sharing agreements. These revenue sharing agreements enable the Company to acquire DVDs at a lower upfront cost than under the direct purchase arrangements. Under the revenue sharing agreements, the Company pays a percentage of the actual net revenues generated by the use of each particular title with the studios over a fixed period of time, which is generally 12 months for each DVD title (hereinafter referred to as the “Title Term”). At the end of the Title Term, the Company typically has the option of either returning the DVD title to the studio or purchasing the title.
Under certain revenue sharing agreements, the Company remits an upfront payment to acquire titles from the studios. This payment includes a contractually specified initial fixed license fee that is capitalized and amortized in accordance with the Company’s DVD library amortization policy. Some payments also include a contractually specified prepayment of future revenue sharing obligations that is classified as “Prepaid revenue sharing expenses” in the Company’s Balance Sheets and is charged to expense as future revenue sharing obligations are incurred.

quote:

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Originally posted by Wooter:
That is good information to know. Thanks for the knowledge.

Regards,
Mike

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quote:

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Originally posted by Schnauzer:
I just came in from doing my weekly shopping, etc. Drove by our local Hollywood Video and slammed on the brakes and went back. BIG SIGN on the window:

RENT ALL THE VIDEO GAMES YOU WANT, KEEP THEM AS LONG AS YOU WANT, NO LATE FEES.

I went in, and in the games section big sign:

$14.95 A MONTH ONE GAME AND $19.95 A MONTH TWO GAMES, KEEP AS LONG AS YOU WANT, NO LATE FEES EVER!

I asked the kid behind the counter about it and he told me that this store (Albany, Oregon) was one of a few test stores to see how well it would work. If it works out for them, they will expand to ALL stores, nationwide.

Looks like we may have some people kind of worried. <grin>

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What it will come down to is selection......these stores cant come close to touching Netflix/ Gameznflix inventory.
Point me to a rental store that carries 15000 DVD titles, and/or 1000-4000 games!! LOL

Worried???
NEVER!!!
Online rentals will destroy all B&M rental stores.

It will also come down to convinence. And last time I checked.....its easier for kids to rent online rather than the parents driving them to the video store all the time.

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Originally posted by delt16:
...Online rentals will destroy all B&M rental stores...

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You are so right. Brick and Mortar are not the future, whether the public wants it or not. The future is online, lower overhead equals larger selection, no late fees, and the convenience of home delivery. -

quote:

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Originally posted by j160e:
Hi folks, I thought I'd give my 2 shares worth, I mean 2 cents worth on the dvd topic. Yes, Netflix has revenue sharing agreements with more than 50 studios and distributors to obtain titles for lower initial costs in exchange for sharing of subscription revenues for a defined period of time, generally 1 year. This allows for the acquisition of more copies of each title. Someone said something of 8 copies of each title but I would think there would have to be a lot more than that. Netflix has 15,000 titles on over 5.1 million dvd's at ~25 distribution centers. I realize there must be more copies of some titles than others but just a simple average of the above says 340 copies per title which would then reduce to maybe 14 copies per dc. My guess is if we will open with 4000 titles as we've heard, then how about at least 400,000 dvd's. That would be 50 copies per dc at present. Purely speculation on my part. I guess we will find out soon enough.

j160e

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