Stan expects break-even in 2018
Nine / Fairfax SVOD has 600,000 subscribers and expects to break-even in the second half of 2018 financial year.
- Published by David Knox
- on
- Filed under Streaming
Nine Entertainment and Fairfax Media-owned SVOD service Stan expects to break even in 2018.
In an investor presentation last week it revealed it had 600,000 active subscribers, 1.4 million sign-ups and an estimated 1.5 million active users.
The company said its conversion rate from free trials to paid subscribers was 73 per cent to 75 per cent and churn has dropped significantly over the last 18 months. It expects to cash break-even in the second half of the 2018 financial year.
“Our sign-up run rate is accelerating … churn is falling, interest in our brand is increasing … converting into cheaper and cheaper cost per acquisition. Every one of those metrics drives our business plan,” chief executive Mike Sneesby said.
Source: The Australian Financial Review
Amended.
7 Responses
That’s quite scary given the amount of cash they need to burn through to get to 2018, I personally have Stan and took it up after an initial 3 month trial, I wasn’t planning too, but now that I have Netflix also, it will be the first thing to go if it gets a bit wobbly. The Larry Sanders show getting picked up on there and dropped 5 months later is the sort of silliness that will turn people off.
They probably only had rights for that many months.
I would expect it’s subscriber rate to increase since it is now unmetered on Optus. I think this is a big deal particularly for younger people that live on their smartphones, may have long commutes (as they are not yet rich enough to live close to the CBD) and might not get “me time” in front of a big screen TV that often. (so watching on a tablet won’t be uncommon either)
Title says 2019 , article says 2018.
Second half of 2018 financial year is 2019.
Yup, but opening sentence says 2018!
The identification of a financial year is the calendar year in which it ends.
e.g. we are currently in the financial year for personal tax purposes of 2017 which ends at 30 June 2017
Companies that have a financial year ending 30 September 2017 are also in their 2017 financial year, not 2016.